Gulf States Transmission Corporation

Original Volume No. 1

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Effective Date: 08/01/1998, Docket: GT98- 78-000, Status: Effective

First Revised Sheet No. 58N First Revised Sheet No. 58N : Effective

Superseding: Original Sheet No. 58N

 

 

GENERAL TERMS AND CONDITIONS (continued)

 

 

(i) Default Bid Evaluation Criteria - If the Releasing Shipper

does not specify otherwise, all bids will be evaluated

pursuant to the weighted composite bid method with equal

weighting factors on all three criteria.

 

(ii) OPTION 1 - Weighted Composite Bid Calculation

 

Bidding

Releasing Releasing Bidding Shipper's

Shipper's Shipper's Shipper's Actual Bid

Assigned Bid Maximum Bid Actual Bid Weighting

Weighting (%) Values Values (%)

(a) (b) (c) (d)*

 

(1) Volume in dth

 

(2) Term Stated in

Months

 

(3) Reservation

Charge(s) and

Reservation

Surcharge(s)

 

Actual Weighted ______

Composite Bid _____%

 

* d = c/b x a

 

 

(iii) OPTION 2 - Net Present Value Calculation

 

-n

R x 1 - (1 + i) x V = present value

_____________

i

 

where: i = interest rate per month using the current Commission interest

rate as defined in 18 C.F.R. Section 154.501(d)(1)

n = term of the agreement, in months

R = the Reservation Charge(s), including surcharge(s) bid

V = volume stated in dth

 

 

(iv) OPTION 3 - Releasing Shipper's Criteria

 

The Releasing Shipper shall specify how bids are to be

evaluated to determine which is the best offer and must

include all criteria necessary to enable Transporter to

evaluate any contingent or non-contingent bids. The criteria

must be objectively stated, applicable to all potential

bidders and non-discriminatory. Such criteria shall also

include provisions describing how capacity shall be allocated

in the event two or more bids are ranked equally.