Southeast Supply Header, LLC

Original Volume No. 1

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Effective Date: 09/04/2008, Docket: CP07-44-005, Status: Effective

Original Sheet No. 325 Original Sheet No. 325

 

GENERAL TERMS AND CONDITIONS

(CONTINUED)

 

26. PROCEDURES FOR CONTRACTING FOR AND ABANDONMENT OF SERVICE (continued)

 

26.7 Allocation of Available Firm Capacity

 

(a) Firm capacity that is or becomes available on Transporter's

system from time to time shall be allocated pursuant to this

Section 26.7.

 

(1) Firm capacity will be allocated to that request(s)

generating the highest net present value to

Transporter. Net present value will be determined

based on the discounted cash flow of revenues to

Transporter produced, lost, or affected by the

request(s) for service. In determining the highest

net present value, Transporter will consider objective

criteria only. Such criteria may include, without

limitation, the maximum contract quantity requested,

the term of the service requested, the date on which

the requested service would commence, and such other

objective criteria available based on the requests for

service received by Transporter. The net present

value evaluation shall include only revenues generated

by the reservation rate component except that under a

negotiated rate agreement with a minimum quantity or

bill, the net present value evaluation shall also

include the fixed cost component of the usage revenue

at the minimum quantity or bill. In determining the

highest net present value in connection with a Shipper

paying a negotiated rate higher than the maximum

recourse rate, such negotiated rate Shipper will be

deemed to be paying a rate equal to the maximum

recourse rate. In making the determination of net

present value, Transporter shall apply the rate, as of

the date of the review, stated in accordance with

Section 154.501(d) of the Commission's regulations, to

all bids.

 

(2) For requests for firm service with a term of less than

ninety (90) days, Transporter shall have the right,

but shall not be obligated, to post on its LINK®

system notice of request(s) for service received and

prescribe a period of time ("open season") for

receiving additional requests to be evaluated

contemporaneously.