Kentucky West Virginia Gas Company

Third Revised Volume No. 1

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Effective Date: 07/01/1993, Docket: RS92- 18-002, Status: Effective

Original Sheet No. 45 Original Sheet No. 45 : Superseded

 

GENERAL TERMS AND CONDITIONS (Continued)

 

24.4 Bidding

 

Potential customers interested in acquiring the service must

submit offers to contract for all or part of the available

capacity by 5:00 p.m. thirty (30) business days after the capacity

is posted to Pipeline's electronic bulletin board. To be valid,

a bid must provide all information and data required by Section

11.2 and 11.3 of Pipeline's General Terms and Conditions. In

addition, the potential customer must provide a refundable

prepayment equal to one month's demand charge based on the

quantity desired and the requested price. All bids, including the

relevant terms and conditions, will be posted on the electronic

bulletin board for review by any party, and the existing customer

will be notified by the Pipeline of the relevant terms of all

competing bids.

 

24.5 Best Bid

 

At the close of the bidding period, Pipeline will evaluate all

bids received for completeness, rate acceptability and

creditworthiness, and will choose the offer it will accept if the

existing customer chooses not to match the offer ("the best bid").

For purposes of this section, the best bid shall be the bid which

offers the maximum applicable rate for the full term of the

bid which shall not exceed twenty (20) years. If no bidder offers

the maximum rate for the full term of the bid, Pipeline may select

the best bid based on the maximum revenue over the minimum term of

the bid. However, Pipeline shall not be required to accept any

offer at less than the maximum rate.

 

24.6 Matching Offer by Existing Shipper

 

Pipeline will notify the existing customer of the relevant terms

of the best bid. The customer will then have twenty (20) business

days to notify Pipeline that it elects to continue service under

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

execute a new service agreement reflecting those rates and terms.

If the existing customer agrees to match the best bid, Pipeline

will refund the prepayments made by all other bidders. Failure to

notify within the 20 day period constitutes a non-revocable waiver

of customers' right to match the best bid, and will result in the

abandonment of service to that customer. If the existing customer

chooses not to match the best bid, Pipeline will offer the

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

is not actually provided pursuant to the bids, Pipeline will

report the available capacity on its electronic bulletin board,

and the bidding process will repeat.