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

Superseding: Original Sheet No. 58O

 

 

GENERAL TERMS AND CONDITIONS (continued)

 

 

(v) OPTION 4 - First-Come/First-Served

 

Capacity shall be awarded on a first-come/first-served basis

as bids are received, up to maximum capacity specified in the

notice of release, to the Acquiring Shipper(s) who submits a

bid meeting the minimum terms and conditions of the release.

Option 4 shall only apply to capacity to be released for a

term of 31 days or less which is not subject to a pre-arranged

release or a contingency. If the weighted composite bid

method is selected by the Releasing Shipper, then such Shipper

shall specify, among the criteria listed above, those criteria

which are to be applicable in determining the highest weighted

composite bid and shall assign a relative weighting to each

such factor. At the end of the open season, Transporter

shall, for each bid received, calculate an actual weighted

composite bid by dividing the actual bid component by

Releasing Shipper's maximum bid component and multiplying the

result by the Releasing Shipper's assigned bid weighting. The

results of this calculation shall determine each bid

component's actual weight. Once all bid components are

calculated, an actual composite weighting will be determined

for each bid by summing the bid weightings for each component.

The bids will then be ranked in order from the highest to the

lowest actual weighted composite score.

 

(vi) OPTION 5 - Highest Rate

 

Capacity shall be awarded to the Acquiring Shipper submitting

the highest bid rate that meets the minimum terms and

conditions of the release.

 

(vii) OPTION 6 - Net Revenue Calculation

 

R x N x V = Net Revenue

 

where: R = the Reservation Charge(s) and

Reservation Surcharge(s)

N = term of the agreement, in months

V = volume stated in dth

 

(c) If the net present value or net revenue options are selected by the

Releasing Shipper, then, at the end of the open season, Transporter

shall calculate a value for each bid received using the appropriate

formula, with the bids being ranked in order from the highest to the

lowest value.

 

(d) If no bids are received which meet or exceed all of the minimum

conditions specified by the Releasing Shipper, no capacity shall be

awarded. If any bids are received which meet or exceed the Releasing

Shipper's minimum criteria, Transporter shall rank all such bids in

accordance with the criteria specified in the notice of release and

shall award the capacity to the successful Bidding Shipper(s). Any

Bidding Shipper who would receive less than the minimum acceptable bid

volume shall not be obligated to accept released capacity.