Florida Gas Transmission Company, LLC

Fourth Revised Volume No. 1

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Effective Date: 09/01/2006, Docket: RP06-463-000, Status: Effective

Original Sheet No. 324 Original Sheet No. 324 : Effective

 

GENERAL TERMS AND CONDITIONS

(continued)

 

A. Procedures to Obtain Interruptible Capacity

 

To obtain interruptible capacity, Shippers must have executed a Service Agreement

under Rate Schedule ITS-1 or ITS-WD, and must comply with the nomination procedures

set forth at Section 10 of these General Terms and Conditions.

 

B. Procedures to Obtain Firm Capacity

 

If and when any Market Area firm capacity on existing facilities becomes available,

other than through the capacity relinquishment program set forth in Section 18,

Transporter shall conduct an Open Season for such capacity. Notice of the Open

Season shall be posted on Transporter's Internet website for a period of not less

than seven (7) days. Shippers or potential Shippers interested in obtaining

capacity must submit a request, in writing or electronically, during the specified

Open Season. Requests must follow the format set forth in Section 3 of the rate

schedule under which the firm capacity is available. Transporter will satisfy all

requests which are feasible given existing facilities and existing MDTQ and MDQ and

which can be fulfilled without impairment of firm capacity rights held by any other

Shipper or without reducing the total contractual entitlements on Transporter's

system. To the extent Transporter is unable to satisfy all of the requests and in

the event all competing bids reflect a straight fixed variable rate design,

Transporter shall award the capacity or portion thereof based on the request with

the highest present value of the reservation charges for the subject capacity not

exceeding the maximum rate applicable to such capacity; provided that Transporter

shall not be required to satisfy any request for capacity at less than maximum

rate, as it may be adjusted from time to time. For the purposes of determining the

best bid and allocating capacity, Shippers willing to pay more than the maximum

tariff rate will be considered to be paying the maximum tariff rate. In the event

competing bids reflect different rate forms, Transporter shall award the capacity

or portion thereof based on the request with the highest present value of the total

expected revenues for the subject capacity, not exceeding revenues based on the

maximum 100% load factor tariff rate applicable to such capacity. Transporter will

calculate the expected usage revenues from each bidder by applying the expected

load factor for each bidder to the volumetric portion of such bid. Transporter

shall prorate the available capacity among requests yielding an equivalent net

present value.