Horizon Pipeline Company, L.L.C.
Original Volume No. 1
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Effective Date: 04/18/2002, Docket: CP00-129-001, Status: Effective
Original Sheet No. 181 Original Sheet No. 181 : Effective
GENERAL TERMS AND CONDITIONS
(b) Horizon shall calculate a Bid Value and Unit Bid
Value for each Qualified Bid and Prearranged Release (if any), and shall
calculate the Winning Bid Value, as follows:
(1) For each month, the volume and reservation
charge per Dth stated in the Qualified Bid shall be multiplied together
to derive a gross monthly revenue figure. If the Qualified Bids contain
volumetric-based charges permitted by the Capacity Release Request, then
the gross monthly revenue figure shall be equal to any minimum amount
designated by the bidder to be billed as a reservation charge even if
there is no (or insufficient) flow.
(2) Each gross monthly revenue figure shall be
discounted to a net present value figure as of the first day of the
capacity release as sought in the Capacity Release Request, using the
current Federal Energy Regulatory Commission interest rate as defined in
18 C.F.R. Section 154.501(d)(1).
(3) The net present value figures for the proposed
release shall be summed, and such sum shall be the Bid Value.
(4) The Unit Bid Value is defined to equal the Bid
Value divided by the product of: (i) the highest volume of capacity (in
Dth) sought in the Qualified Bid for any day; multiplied by (ii) the
release term (in months) in the Capacity Release Request; and multiplied
further by (iii) thirty and four-tenths (30.4).
(c) The combination of Qualified Bid(s) with the
highest possible total Bid Value (Winning Bid Value) for the capacity in
the Capacity Release Request shall be the winning Qualified Bid(s). A
Qualified Bid may be allocated less than its Maximum Bid Volume, but in
no event shall the Qualified Bid be allocated less than its Minimum Bid
Volume. It is recognized that this procedure is intended to result in
the highest possible total Bid Value for the Releasing Shipper
consistent with the Qualified Bids, and it is possible that a Qualified
Bid with the highest individual Unit Bid Value may be rejected partially
or in its entirety.
(d) If there is more than one combination of Qualified
Bids with a total Bid Value equal to the Winning Bid Value this Section
15.10(d) provides the procedure for selecting just one such combination,
and thereby the winning Qualified Bid(s).