Dominion Transmission, Inc.
Third Revised Volume No. 1
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Effective Date: 05/27/2005, Docket: RP05- 51-001, Status: Effective
Sub Original Sheet No. 1506 Sub Original Sheet No. 1506 : Effective
GENERAL TERMS AND CONDITIONS
Allocation of Unsubscribed Firm Capacity
43.5 Evaluation Criteria and Award of Capacity (continued)
validation purposes. In the event that a participating bidder
challenges in writing Pipeline's failure to award the capacity to it,
Pipeline will reveal the reserve rate to the FERC Office of
Administrative Dispute Resolution, or another mutually agreeable
neutral third party, on a confidential basis to confirm that the
capacity was awarded in accordance with the Tariff.
B. Pipeline may establish objective and non-discriminatory factors
determined by Pipeline to be relevant to the granting of the request,
including the treatment of contingent bids, which shall be considered
in evaluating bids for capacity. Notice of any such factors to be
considered, and the methodology for applying or weighing those
factors, shall be posted on the EBB at the time Pipeline posts the
notice of available capacity under this Section 43.
C. Pipeline shall reject any bid that: (1) if accepted, would
detrimentally impact the operational integrity of Pipeline's system,
(2) contains terms and conditions inconsistent with those contained in
Pipeline's FERC Gas Tariff, (3) does not meet the minimum requirements
or conditions specified in the posting, or (4) if applicable, is for
less than the reserve rate established in accordance with Section
43.5.A. In addition, Pipeline shall have the right to reject any bid,
on a not unduly discriminatory manner, that: (5) is for less than the
Pipeline's maximum Commission-authorized rate applicable to the
service, (6) is made by a bidder not on Pipeline's approved bidder
list, (7) includes conditions or contingencies not specifically
allowed in the posting, or (8) purports to alter the bidder's
obligation to pay all applicable usage charges, surcharges, and any
other applicable charges and penalties.
D. To the extent that a bidder offers to pay rates in excess of any then-
applicable maximum rate component, Pipeline shall consider that bid to
be equivalent to the applicable maximum rate component for purposes of
awarding capacity. Pipeline shall evaluate valid bids based on one of
the following methods, as identified in the posted notice:
1. The highest net present value of the reservation charges or other
source of guaranteed revenue to be received by Pipeline over the
term of service; or,
2. The highest reservation charge bid, or other source of guaranteed
revenue, provided that such bid meets the Pipeline's stated terms.
A bid may be higher than the maximum tariff rate, but Pipeline
shall not consider that portion of such bid in its bid evaluation
process. In addition, to the extent other sources of guaranteed
revenue are considered in calculating the net present value, such
revenue shall be capped at the maximum recourse reservation rates.
3. An alternate objective method chosen by Pipeline, posted three days
prior to the date that capacity is posted for bid. Such method
must be applicable to all bidders, and not unduly discriminatory.
The method shall be objectively stated, with sufficient
specificity to reasonably determine and apply the method or
formula to be used and to rank all bids received, utilizing the
elements contained in the bid.