Crossroads Pipeline Company

Original Volume No. 1

 Contents / Previous / Next / Main Tariff Index

 

 

Effective Date: 12/02/1999, Docket: RP00- 59-000, Status: Effective

Third Revised Sheet No. 66 Third Revised Sheet No. 66 : Effective

Superseding: Second Revised Sheet No. 66

 

32.8 Determination of the Best Bid

 

(a) All bids must reflect the number of decimal places included in Crossroads'

tariffed rates, and should be adjusted (as set forth in Section 32.8(d)

herein) to reflect a standard calculation of daily and monthly rates. The

releasing shipper may specify whether bids should be expressed in dollars

and cents or in percentages of Crossroads' tariffed rates. All maximum or

minimum rates set forth in the offer of release should include the

reservation rate and all applicable demand surcharges, either as a total

number or expressed separately.

 

(b) Crossroads will account for volumetric and reservation components of rates.

 

(c) Quantities in offers and bids should be set forth numerically. The release

quantity should be expressed numerically in daily and total figures for

transportation capacity.

 

(d) For less than maximum rate transactions only, converting daily rate to

monthly rate is accomplished by multiplying the daily rate times number of

days in rate period, dividing the result by number of months in rate

period and taking the remainder out to 5 decimal places and rounding up or

down to the transporter's specified decimal place. Converting a monthly

rate to a daily rate is accomplished by multiplying the monthly rate by

number of months in rate period, dividing the result by number of days in

rate period and taking the remainder out to 5 decimal places and rounding

up or down to the transporter's specified decimal place.

 

(e) The releasing shipper may define in the notice of release the criteria for

determining the best bid.

 

(f) If the notice of release does not specify the criteria for determining the

best bid, Crossroads will determine the best bid by Economic Value. The

Economic Value of a bid shall be defined as the net present value of the

reservation bid for the release of transportation capacity. The net

present value shall be computed from the monthly demand and capacity

charge or reservation revenues to be received over the term of the

release contract, except that under a Negotiated Rate agreement with a

minimum quantity, the net present value evaluation shall also include

the fixed cost component of the usage revenue at the minimum quantity.

In making the determination of net present value, Crossroads will use

the discounted cash flow rate of return methodology, with the rate

of discounting to be published on Crossroads' EBB, as amended from

time to time.

 

(g) In the event of identical best bids, the first bid received shall be the

winning bid. In the event of identical bids received simultaneously,

Crossroads will award the capacity pro rata among the bidders submitting

identical best bids. If multiple bids meeting the minimum criteria set

forth in the offer of release are received, Crossroads will award the

capacity, best bid first, until all offered capacity has been awarded.