Great Lakes Gas Transmission Limited Partner

Second Revised Volume No. 1

 Contents / Previous / Next / Main Tariff Index

 

 

Effective Date: 12/31/2008, Docket: RP09-113-000, Status: Effective

Original Sheet No. 9C Original Sheet No. 9C

 

GENERAL TERMS AND CONDITIONS

____________________________

(continued)

 

 

 

2.2 Pre-arranged Transportation Service and Interim Service

 

a) Pre-arranged Service. Transporter may enter into an agreement with a Shipper for

transportation service for a future period ("Pre-arranged Service") for unsubscribed firm

capacity posted on Transporter's Web Site that is available or that will become available and is

not subject to a right of first refusal, pursuant to Section 16 of the General Terms &

Conditions of this FERC Gas Tariff, Second Revised Volume No. 1, or to any other Shipper renewal

rights. If there is an open season ongoing for certain capacity, Transporter will not enter

into a Pre-arranged Service for that capacity during the open season.

 

b) Interim Service. Capacity that is under contract for a future period may be available for

transportation service on an interim basis up to the commencement date of the Pre-arranged

Service. The availability of interim capacity, including any limitations on the renewal rights

for such capacity pursuant to Subsection 2.2 (c), will be posted on Transporter's Web Site.

Transporter shall award the interim capacity up to the commencement date of the Pre-arranged

Service to Shippers requesting such service.

 

c) Capacity Reservation. In order to reserve capacity under a Pre-arranged Service, Transporter

reserves the right to limit any Shipper renewal rights, including the right of first refusal,

which might otherwise apply to interim sales of the capacity, provided that:

 

1. Upon entering into a Pre-arranged Service for which capacity is to be reserved and for

which renewal rights on any interim sales of such capacity shall be limited,

Transporter will post a notice on its Web Site indicating the terms of the Pre-

arranged Service, and that the pre-arranged capacity is available for bidding.

 

2. Except as provided otherwise in this Subsection 2.2 (c)(2), Transporter shall post for

bids and award the pre-arranged capacity in accordance with Subsection 2.1 (g) of the

General Terms and Conditions. Pre-arranged capacity shall be available for bidding for

at least five (5) business days, and Transporter shall evaluate acceptable bids on a

net present value (NPV) basis. The criteria for acceptable bids shall be included in

the posting for bids. Bids may be for service to commence on the earliest date such

capacity is available or some other future date. At the end of the bidding period,

Transporter shall evaluate acceptable bids on a net present value (NPV) basis,

utilizing the FERC approved interest rate as the discount rate, with the current value

of any future bids reduced by the time value of the delay in the receipt of revenue.

Any bid rate higher than the maximum applicable tariff rate shall be deemed to be

equal to the maximum applicable tariff rate. NPV shall only include revenues generated

by the reservation rate, or any other form of revenue guarantee, as proposed in a bid

for the capacity. If an acceptable bid yields a higher NPV than that of the Pre-

arranged Service, the pre-arranged Shipper shall have a one-time right to match the

highest competing bid in order to retain the capacity. If the pre-arranged Shipper

elects not to match the highest competing bid, the capacity shall be awarded to the

competing shipper whose acceptable bid produced the highest NPV. Nothing in this

section shall require Transporter to discount below the maximum rate applicable to a

transportation service nor shall Transporter be required to agree to any other terms.