Centerpoint Energy Gas Transmission Company

Sixth Revised Volume No. 1

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Effective Date: 05/01/2010, Docket: RP10-567-000, Status: Effective

First Revised Sheet No. 548 First Revised Sheet No. 548

Superseding: Original Sheet No. 548

 

GENERAL TERMS AND CONDITIONS

(continued)

 

19. CAPACITY RELEASE (continued)

 

19.5 Best Bid. Transporter shall evaluate and determine the best bid

among those otherwise consistent with any terms and conditions

specified by the releasing Shipper as follows:

 

(a) Transporter shall apply the standard or criteria for such

determination specified by the releasing Shipper, including

the standard to be used for breaking ties. Any standard or

criteria so specified must be objective, economic, not

unduly discriminatory, not contrary to applicable provisions

of this Tariff, applicable to all potential replacement

Shippers and require Transporter in applying such standard

to exercise no more than a ministerial function. The

releasing Shipper shall indemnify and hold Transporter

harmless from and against all demands, losses, claims,

expenses, causes of action and/or damages suffered or

incurred by Transporter arising out of or related to any

determination of a "best bid" pursuant to a standard

specified, supplied, approved or provided by releasing

Shipper. Releasing Shippers may specify one of the

following bid evaluation methodologies on offers to release.

Transporter shall have no obligation to accept bid

evaluation methodologies other than those specified below.

 

(i) highest reservation charge unit rate on a daily basis;

 

(ii) net revenue (net unit rate times quantity [based on

maximum quantity bid upon] times term);

 

(iii) highest net present value, using a 10% discount

factor, based on the rate bid (reservation or demand

component), the applicable quantity(ies), and term or

period bid upon; and

 

(iv) first-come, first-served option for releases of

thirty-one (31) Days or less.