Centerpoint Energy - Mississippi River

Third Revised Volume No. 1

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Effective Date: 02/25/2009, Docket: RP09-262-000, Status: Effective

Fifth Revised Sheet No. 172 Fifth Revised Sheet No. 172

Superseding: Fourth Revised Sheet No. 172

 

GENERAL TERMS AND CONDITIONS

(Continued)

 

14. CAPACITY RELEASE (Continued)

 

14.7 Awarding Released Capacity to Approved Bidders

 

(a) After the close of the bidding period, MRT shall review all

bids submitted and determine if any bid meets the terms and conditions

set forth in the applicable Release Offer and the terms and conditions

set forth in this section. MRT shall also verify that each Approved

Bidder continues to meet MRT's credit criteria. Except as provided in

Section 14.8(b) below, MRT will not be obligated to award released

capacity to a Potential Bidder, Approved Bidder or Prearranged

Replacement Customer until and unless such bidder or customer meets

MRT's creditworthiness requirements applicable to all services such

bidder or customer receives from MRT, including the service represented

by the capacity release. If the bid meets these conditions, then it

will be deemed a Qualifying Bid. MRT will then determine the Best

Bid(s) from the Qualifying Bids received that meet(s) the objective,

non-discriminatory conditions of the Releasing Customer's Release Offer.

 

(b) If only one Qualifying Bid is the Best Bid, then that bid

shall be the Winning Bid. If there are two or more Best Bids and the

Releasing Customer failed to provide a standard for determining the

Winning Bid as set forth in Section 14.3(a)(ix), the released capacity

will be awarded to the Approved Bidder that submitted its bid first. If

two or more Best Bids are received by MRT at the same time, MRT shall

use a lottery to select the Winning Bid from among those Best Bids. If

capacity offered for release remains after determination of the Best Bid

and the Releasing Customer does not specify another method for

disposition of such capacity, then MRT will determine from among the

remaining Qualifying Bids the next Best Bid and proceed in the same

manner until all the offered capacity has been awarded to Approved

Bidders submitting Qualifying Bids.

 

(c) Unless specifically requested otherwise by a Releasing

Customer in its Release Offer, Qualifying Bids for released capacity

shall be evaluated using the economic standard as set forth below.

 

MRT shall calculate a bid value and unit bid value for each

Qualifying Bid and shall determine the Winning Bid as

follows:

 

(i) For each month, the MDQ and reservation charge

per Dth stated in the Qualifying Bid shall be multiplied

together to derive a gross monthly revenue figure. If the

Qualifying Bids contain volumetric-based charges permitted

by the Release Offer, then the