Great Lakes Gas Transmission Limited Partner

Second Revised Volume No. 1

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Effective Date: 03/01/2008, Docket: RP08-175-000, Status: Effective

Fifth Revised Sheet No. 45A Fifth Revised Sheet No. 45A : Effective

Superseding: Fourth Revised Sheet No. 45A

 

GENERAL TERMS AND CONDITIONS

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(continued)

 

 

16.2 Posting of Notice for Bids. Within five (5) business days of receipt of Shipper's Subsection

16.1 (a)(1) written response that it wishes to exercise its right of first refusal, Transporter

shall post upon its Web Site a notice of capacity available for bids containing the following

information:

a. The quantity of capacity available upon expiration of Shipper's existing Agreement subject

to existing Shipper's right of first refusal (bids for partial capacity are permitted).

b. The date of expiration of the Agreement.

c. The Primary Receipt Point(s) of the Agreement.

d. The Primary Delivery Point(s) of the Agreement.

e. The maximum rate applicable to the Transportation Service as set forth on Sheet No. 4

and/or 4A.

f. If the service to be renewed is under Transporter's Rate Schedule LFT, Transporter shall

make clear in the posting that service is subject to periods of unavailability as provided

for under such rate schedule and shall post the number of Days that Service shall be

unavailable.

The notice shall remain posted on the Web Site and the capacity shall remain open for bids for

thirty (30) days.

 

16.3 Submission of Bids. "Potential Shippers" are persons who desire Transportation Service to be

provided to them in whole (or in part) from the capacity made available upon expiration of

Shipper's existing Agreement. Bids from Potential Shippers must be received by Transporter

within thirty (30) days of the Subsection 16.2 posting date. A bid shall be an offer to enter

into a Transportation Service Agreement under Rate Schedule FT, Rate Schedule EFT, or Rate

Schedule LFT of Transporter's FERC Gas Tariff, Second Revised Volume No. 1, as appropriate.

 

16.4 Bid Requirements. A bid must be:

a. posted directly on GLConnect or submitted in writing;

b. signed by one authorized to sign contracts on behalf of the Potential Shipper, or submitted

to GLConnect by one authorized to submit bids for Transporter's capacity on behalf of the

Potential Shipper pursuant to Section 24, Electronic Communications, of the General Terms

and Conditions; and

c. submitted by a Potential Shipper that has complied with the requirements for a request

for service pursuant to Rate Schedule FT, Rate Schedule EFT, or Rate Schedule LFT of

Transporter's FERC Gas Tariff, Second Revised Volume No. 1, as appropriate, and with the

creditworthiness provisions of Section 26 of the General Terms and Conditions.

 

Transporter may reject all bids which propose a discount rate and term of discount not agreeable

to Transporter. If a Potential Shipper's bid is rejected or not awarded for any reason,

Transporter will refund any payment made pursuant to Section 2.1 (d) of the General Terms and

Conditions of Transporter's FERC Gas Tariff, Second Revised Volume No. 1.

 

16.5 Best Bid(s) for Matching Purposes.

 

a) At the close of the bidding period, Transporter shall review all bids that met the bid

requirements and that were not rejected by Transporter pursuant to Subsection 16.4. Such

bids ("valid bids") shall be evaluated on the basis of the Net Present Value of the

proposed reservation rate (or any other proposed form of revenue guarantee) and the

associated proposed term ("NPV per unit"). As used in this Subsection 16.5, revenue

guarantee shall include, but not be limited to, revenue based on any minimum throughput

commitment proposed in a bid.

 

b) The NPV per unit shall be determined utilizing the FERC approved interest rate as the

discount rate, except that any bid rate higher than the maximum applicable tariff rate

shall be deemed to be equal to the maximum applicable tariff rate.

 

c) Transporter shall rank the bids in order of the highest to the lowest NPV per unit. From

those ranked bids, Transporter will determine which bid(s) is the "Best Bid(s) for Matching

Purposes" ("BBMP(s)"). The BBMP(s) shall be the bid(s), in order of ranking, which

aggregate to a total quantity not greater than the capacity posted for bids under

Subsection 16.2.