Millennium Pipeline Company, L. L. C.

Original Volume No. 1

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Effective Date: 11/01/2009, Docket: RP10-17-000, Status: Effective

First Revised Sheet No. 83 First Revised Sheet No. 83

Superseding: Original Sheet No. 83

 

GENERAL TERMS AND CONDITIONS

(Continued)

 

as they may be adjusted from time to time by Transporter. Transporter has

the right to reject any bids that: (i) are for a rate that is less than the

minimum rate stated in Transporter's posting of that capacity; (ii) do not

satisfy any of the other terms specified in the posting; or (iii) include

conditions or provisions that Transporter determines, in its reasonable

discretion, to be unacceptable.

 

(c) Assessing Bids.

 

(1) Transporter will assess the bids to assure that capacity is

available to serve the precise delivery point(s) requested. If capacity

is not available, Transporter will reject the bids and advise Shipper.

 

(2) Transporter will evaluate bids that meet the minimum rate

and term conditions posted by Transporter based upon their net Present

Value as set forth below, taking into account the price, volume, start

date and term offered. Transporter will use the current Commission-

approved interest rate in calculating the net present value of bids,

with the current value of any future service commencement date bids

reduced by the time value of the delay in the receipt of revenue.

Capacity will be awarded, as set forth in paragraph (d) below, based on

the acceptable highest value of the bids offered to Transporter

calculated in accordance with this Section. Transporter will publish

the winning bids on its EBB.

 

(d) Awarding Capacity; Pro Rata Awards To Equal Bidders. Consistent

with the bid assessment criteria set forth in paragraph (c) immediately

above, Transporter will award capacity: (i) first to an existing capacity

holder that exercises a right of first refusal to match the highest value

bid; provided that the highest rate that such holder must match is the

Recourse Rate; and (ii) then to the bidder submitting the highest value bid

or if two or more bidders submit equal acceptable highest value bids then pro

rata to all bidders that submitted equivalent highest value bids based upon

daily quantities requested.

 

(e) Binding Nature of Bids. All bids are binding; provided, however,

that a bidder may decline to accept a pro rata allocation of capacity

resulting in an award of less than the full capacity requested if such

Shipper notifies Transporter of that decision through Transporter's EBB

within one hour of Transporter's notice to that Shipper of the pro rata

allocation. Otherwise, if a successful bidder fails to execute a Service