North Baja Pipeline, LLC
Original Volume No. 1
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Effective Date: 07/30/2008, Docket: RP09-208-000, Status: Effective
Second Revised Sheet No. 174 Second Revised Sheet No. 174
Superseding: First Revised Sheet No. 174
GENERAL TERMS AND CONDITIONS OF SERVICE
19. CAPACITY RELEASE (Continued)
19.7 Allocation of Parcels (Continued)
(a) Primary Allocation (Continued)
Option 2 - Present Value
Bids will be given priority based on the net present value
per Dth for the term of the bid according to the following
(1 + i) -1
Present Value per = P * R * __________
i (1 + i)
P = percent of the maximum authorized rate or charge that
the Replacement Shipper is willing to pay.
R = Rate or charge calculated as: The maximum authorized
reservation charge [or a volumetric equivalent of the
maximum reservation charge applicable to the Parcel on a
one hundred percent (100%) load factor basis] in effect
at the time of the bid for service from the same receipt
point to the same delivery point under the Releasing
Shipper's rate schedule.
For short-term capacity releases not subject to a rate
cap, P * R shall equal a Replacement Shipper's bid in
terms of absolute dollars and cents per Dth.
i = FERC's annual interest rate divided by 12.
n = number of periods for which the bidder wishes to
contract, not to exceed the maximum periods to be
released by the Releasing Shipper. For releases greater
than or equal to one (1) month, the period is the number
of months. For releases less than one (1) month the
period is the number of days.
A bid queue will be maintained for each individual