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

(Continued)

 

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).