East Tennessee Natural Gas, LLC

Third Revised Volume No. 1

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Effective Date: 05/21/2009, Docket: RP09-528-000, Status: Effective

Third Revised Sheet No. 319 Third Revised Sheet No. 319

Superseding: Second Revised Sheet No. 319

 

GENERAL TERMS AND CONDITIONS (Continued)

 

(iii) maximum reservation charge as set forth in the

Summary of Rates and Charges in Transporter's

FERC Gas Tariff;

 

(iv) any applicable restrictions; and

 

(v) the last day of the Bidding Period.

 

(2) Upon conclusion of the Bidding Period, Transporter

shall evaluate the bids in accord with the present

value formula set forth in Section 17.7(b) for firm

transportation or Section 18.7(b) for LNGS service for

the evaluation of bids under Transporter's capacity

release mechanisms; provided that the term used for

purposes of the formula will be the term proposed by

the Bidder; and provided further that any bid rate

higher than the maximum applicable rate shall be

deemed to be a bid equal to the maximum applicable

rate.

 

(3) Within 5 days of the close of the Bidding Period,

Transporter shall notify Shipper of the bid having the

highest present value to Transporter ("Highest Bid").

Shipper shall have 25 days after receiving notice to

notify Transporter as to whether it will match the

highest bid. If the Shipper elects to match the

highest bid, prior to the termination of its existing

long term firm service agreement, it must execute a

new service agreement that contains the terms of that

Bid; provided, however, that Shipper shall not be

required to pay any rate higher than the maximum

applicable rate.

 

(4) If Transporter receives no bids on the capacity, then

Shipper may continue to receive service at the maximum

rate on a month-to-month basis or such other rate

and/or term as Transporter and Shipper mutually agree.

A Shipper who continues service under such basis shall

retain its right of first refusal.