Midwestern Gas Transmission Company

Third Revised Volume No. 1

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Effective Date: 06/12/2005, Docket: RP05-341-000, Status: Effective

Second Revised Sheet No. 259 Second Revised Sheet No. 259 : Effective

Superseding: First Revised Sheet No. 259

 

GENERAL TERMS AND CONDITIONS

 

 

21. CAPACITY RELEASE (Continued)

 

21.10 Bid and Award Process (Continued)

 

method chosen to determine the successful Bidders as mandated

thereby, provided that the capacity released to each successful

Bidder shall be no less than one Dekatherm. If the Releasing Shipper

desires to award more than one winner, the Releasing Shipper should

allow for the acceptance of partial quantity Bids.

 

(2) If the present value method is chosen, then Company shall evaluate

the Bids and award the capacity based on the following procedures:

 

Company shall determine the Bid or Bids having the highest present

value ("PV") based on the following formula:

 

-N

PV = (Bid Rate) x (Bid MDQ) x 1-(1+i)

-------

i

 

where

 

Bid Rate = for firm releases, the demand charge that the Bidder

has agreed to pay; for interruptible releases, the

usage charge that the Bidder has agreed to pay.

 

Bid MDQ = the MDQ stated in the Bid.

 

i = interest rate per month (which shall be the then

current maximum yield on five-year U.S. Government

Treasury note divided by 12), and

 

N = term proposed by the Bidder.

 

(3) If the net revenue method is chosen, Company shall determine the Bid

or Bids having the highest net revenue (NR) using the following

formula:

 

NR = (Bid Rate) x (Bid Term) x (Bid TQ)

 

where

 

Bid Rate = the daily charge which the Bidder has agreed to pay;

for demand rate Bids, the charge is calculated by

dividing the Bid rate received from the Bidder by

30.4 days per month (average days per month in a

365-day year).

 

Bid Term = the term proposed by the Bidder, in days.

 

Bid TQ = the TQ stated in the Bid, measured in Dekatherms.