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:
PV = (Bid Rate) x (Bid MDQ) x 1-(1+i)
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
NR = (Bid Rate) x (Bid Term) x (Bid TQ)
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
Bid Term = the term proposed by the Bidder, in days.
Bid TQ = the TQ stated in the Bid, measured in Dekatherms.