Granite State Gas Transmission, Inc.

Third Revised Volume No. 1

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Effective Date: 01/31/2003, Docket: RP99-509-001, Status: Effective

Sub Second Revised Sheet No. 323 Sub Second Revised Sheet No. 323 : Superseded

Superseding: Second Revised Sheet No. 323

 

GENERAL TERMS AND CONDITIONS

(continued)

 

30. PREGRANTED ABANDONMENT (continued)

 

30.5 Best Bid: At the close of the bidding period, Transporter

will evaluate all bids received for completeness, rate

acceptability and credit-worthiness, and will choose the

offer it will accept if the existing Shipper chooses not to

match the offer ("the best bid"). For purposes of this

Article, the best bid shall be the bid which offers the

maximum applicable rate for the full term of the bid which

shall not exceed five years. If no bidder offers the maximum

rate for the full term of the bid, Transporter may select the

best bid based on the maximum revenue over the minimum term

of the bid. Such maximum revenue shall be calculated on the

basis of the monthly demand charge or reservation revenues to

be received over the minimum term of the bid, except that if

a bid includes a minimum quantity, the maximum revenue

evaluation shall also include the fixed cost component of the

usage revenue at the minimum quantity. However, Transporter

shall not be required to accept any offer at less than the

maximum rate.

 

30.6 Matching Offer by Existing Shipper: Transporter will notify

the existing Shipper of the relevant terms of the best bid.

The Shipper will then have twenty (20) business days to

notify Transporter that it elects to continue service under

the rates and terms applicable to the best bid, and agrees to

execute a new transportation contract reflecting those rates

and terms, provided, however, that the highest rate that an

existing Shipper must match to retain all or a portion of its

capacity is the applicable maximum recourse rate. If the existing

Shipper agrees to match the best bid, Transporter will refund

the prepayments made by all other bidders. Failure to notify

Transporter within the 20 day period constitutes a non-revocable

waiver of Shippers right to match the best bid, and will result

in the abandonment of service to that Shipper. If the existing

Shipper chooses not to match the best bid, Transporter will

offer the service to the selected bidder. If, for whatever

reason, service is not actually provided pursuant to the bids,

Transporter will repost the available capacity on its electronic

bulletin board, and the bidding process will repeat.