Midwestern Gas Transmission Company
SECOND REVISED VOLUME NO. 1
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Effective Date: 05/01/2000, Docket: RP00-233-000, Status: Effective
Second Revised Sheet No. 94 Second Revised Sheet No. 94 : Superseded
Superseding: First Revised Sheet No. 94
GENERAL TERMS AND CONDITIONS
b) If the present value method is chosen, then Transporter shall evaluate
the Bids and award the capacity based on the following procedures:
Transporter 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 reservation 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), (Transporter will post
the current Treasure note rate on PASSKEY); and
N = term proposed by the Bidder.
c) If the net revenue method is chosen, Transporter 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 reservation 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.
d) If a Release Request includes a Prearranged Bidder, then the released
transportation rights shall be awarded to the Prearranged Bidder (a)
if its Bid has a value, determined in accordance with Section 6(a)
equal to or higher than the highest value of the Bids submitted by all
other Bidders, or (b) if the Prearranged Bidder agrees to match any Bid
having a higher value, as applicable, within the time period provided
by Section 8.