Granite State Gas Transmission, Inc.

Fourth Revised Volume No. 1

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Effective Date: 03/01/2010, Docket: RP10-322-000, Status: Effective

Original Sheet No. 133 Original Sheet No. 133

 

GENERAL TERMS AND CONDITIONS

(Continued)

 

27. PREGRANTED ABANDONMENT (Continued)

 

27.5 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.

 

27.6 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 IWS, and the bidding process will

repeat.