Great Lakes Gas Transmission Limited Partner

Second Revised Volume No. 1

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Effective Date: 08/01/2007, Docket: RP07-490-000, Status: Effective

Sixth Revised Sheet No. 46 Sixth Revised Sheet No. 46 : Effective

Superseding: Fifth Revised Sheet No. 46

 

GENERAL TERMS AND CONDITIONS

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(continued)

 

 

16.6 Notice of Bid Results. Within fifteen (15) days of the close of the bidding period, Transporter

will notify Shipper:

 

1) of the rate and term, as adjusted pursuant to Subsection 16.5 (b), and the quantity

of each BBMP, if any, ranked from highest to lowest NPV per unit, or

 

2) that no valid bids were received.

 

16.7 Matching and Award of Capacity.

 

a) Shipper shall have thirty (30) days from Transporter's Subsection 16.6 notice to match the

BBMP(s) for the quantity that Shipper wishes to renew. Shipper shall match the BBMP(s) in

order of ranking (highest to lowest).

 

b) In order to match a BBMP, Shipper must agree to a net present value of rate and term which

at least equals the net present value of the rate and term, as reflected in Transporter's

Subsection 16.6 notice, of the BBMP being matched; provided, however that Shipper shall not

be required to pay any rate higher than the maximum applicable tariff rate; and further

provided that Transporter shall not be required to accept any rate other than the rate

stated in the BBMP, or the maximum applicable tariff rate, nor shall Transporter be

required to agree to any other terms.

 

c) If a matched BBMP represents a volumetric portion of the total capacity posted for bids

under Subsection 16.2, the volumetric amount of capacity to which the matched BBMP applies

shall be awarded to Shipper. Shipper may choose to renew a volumetric portion of a

particular BMMP provided it has matched any and all higher-ranked BBMP(s) for their full

volumetric capacity.

 

d) To the extent that the quantity Shipper wishes to renew exceeds the aggregate quantity of

the BBMP(s), and after Shipper has matched all BBMP(s) for their full volumetric quantity,

the provisions of Subsection 16.8 regarding absence of bids shall apply to the remaining

quantity.

 

16.8 Absence of Bids. In the event Transporter does not receive any valid bids, Transporter and

Shipper shall have thirty (30) days from Transporter's Subsection 16.6 notice to mutually agree

upon the terms and conditions of renewed service, provided that a) Transporter shall not be

required to discount below the maximum applicable tariff rate or to agree to any other terms;

and b) Shipper may select the term of renewed service after agreeing to pay the maximum rate.

 

16.9 Any capacity not awarded to the existing Shipper shall be awarded to the Potential Shipper(s)

whose bid(s) produces the highest NPV per unit utilizing the FERC approved interest rate as the

discount rate and utilizing the actual term set forth in the bid(s).

 

16.10 Shipper's right of first refusal shall expire upon award to Shipper of the total capacity

Shipper wishes to renew, or thirty (30) days from Transporter's Subsection 16.6 notice,

whichever is earlier. Shipper shall have a new right of first refusal on its renewal agreement

for a) capacity renewed at the maximum rate that meets the requirements set forth in Section 16;

and b) capacity renewed under a discounted recourse rate agreement or negotiated rate agreement

if Shipper and Transporter so agree in accordance with Section 16.

 

16.11 Upon expiration of Shipper's right of first refusal, the provisions of Section 2 of Rate

Schedule FT, Rate Schedule EFT, or Rate Schedule LFT of Transporter's FERC Gas Tariff, Second

Revised Volume No. 1 shall apply.