Dominion Cove Point LNG, LP
Original Volume No. 1
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Effective Date: 03/01/2009, Docket: RP09-293-000, Status: Effective
Third Revised Sheet No. 245 Third Revised Sheet No. 245
Superseding: Second Sub. Second Revised Sheet No. 245
GENERAL TERMS AND CONDITIONS
10. RELEASE AND ASSIGNMENT OF SERVICE RIGHTS (Continued)
(c) Evaluating Bids. (Continued)
(2) Evaluation Criteria. In its posted notice, Releasing Customer must specify one of the
following bid evaluation mechanisms:
(i) NPV Method. The net present value of the bid quantity, multiplied by the bid price,
discounted over the bid term by the effective Commission interest rate.
(ii) Net Revenue Method. The value of the bid quantity, multiplied by the bid price.
(iii) An alternate objective method chosen by Releasing Customer, and specified in the
posted notice. Such method must be objectively stated, applicable to all bidders, and
not unduly discriminatory. Such method must be stated with sufficient specificity to
enable Operator to reasonably determine and apply the method or formula to be used, in
order to rank all bids received, utilizing the elements contained in the Bid
Agreement. Such alternate method shall not be subject to the timeline specified in
Section 10.(b).(2), above; Operator and Releasing Customer shall determine a mutually-
agreeable timeline, appropriate under the circumstances, prior to posting the notice
of such offer. The applicable timeline must be included in the posted notice.
(iv) If Releasing Customer does not designate an evaluation standard in the posted notice
of the release, the best bid shall be determined as follows: the bidder submitting
the highest bid rate, within the minimum and maximum rates, if applicable, and in
accordance with Section 10.(b).(6).(vii), above, shall win.
(3) Tie-Breaking Method. If more than one bidder wins under the applicable evaluation criteria,
the capacity must be released in accordance with the tie-breaking method specified in Releasing
Customer's posted notice. If Releasing Customer does not designate a tie-breaking method, then
the capacity will be allocated as follows: first to the winning bidder who submits a non-
contingent bid, as opposed to bids on a contingent basis. If more than one winning bid is non-
contingent, then to the bidder that is currently utilizing the subject capacity, or if no
winning bidder is currently utilizing the subject capacity, then to the bidder who submitted
its winning bid first in time; provided that if a Designated Replacement Customer submits a
"winning bid," then Operator must contract with such Designated Replacement Customer.
(4) Matching Period. In the event that Releasing Customer has a Designated Replacement Customer
who does not submit a winning bid, then Operator must give such Designated Replacement Customer
an opportunity to match the terms and conditions of the winning bid, as provided in the posted
notice under Section 10.(b).(6).(xi).
(5) Operator shall post the winning Bid Agreement on Operator's EBB, immediately after the bid is
awarded, including the name of the winning bidder.
(6) A posted offer of release shall expire without award if Operator is unable to contract with a
bidder before the commencement of the term for the offered capacity.
(7) Prior to the next nomination opportunity after the bid is awarded, Operator will release any
posted collateral to a non-winning non-creditworthy bidder(s) unless otherwise requested by
such bidder(s). For cash forms of collateral, Operator will release such collateral by wire
transfer of Federal Funds in accordance with the instructions provided by bidder pursuant to
Section 10.(a).(4). For non-cash forms of collateral, Operator will release such collateral by
depositing such documentation for delivery by overnight courier in accordance with the
instructions provided by bidder pursuant to Section 10.(a).(4).