Gas Transmission Northwest Corp.
Third Revised Volume No. 1-A
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Effective Date: 01/01/2007, Docket: RP06-407-000, Status: Effective
First Revised Sheet No. 130 First Revised Sheet No. 130 : Effective
Superseding: Original Sheet No. 130
TRANSPORTATION GENERAL TERMS AND CONDITIONS
18. OPERATING PROVISIONS (Continued)
18.1 Firm Service (Continued)
(e) Valuation of Bids (Continued)
shall estimate the future revenues to be received under the
Negotiated Rate Formula using currently available data.
As part of an open season posting, GTN will provide a
probability of default table and will identify any limits,
based upon credit rating, to be placed on bid lengths. The
probability of default table will define a bidder's
probability of default based upon 1) the applicable bid term
and 2) the credit rating of the shipper. Shipper credit
ratings will be determined consistent with Paragraph 18.3 of
these General Terms and Conditions.
The specific bid evaluation methodology to be used, including,
where appropriate, the data to be used for evaluation of
Negotiated Rate Formula bids, will be included as part of
GTN's open season posting under Paragraph 18.1(c) with
sufficient specificity to allow a prospective shipper to
calculate the value of its bid and duplicate GTN's results.
Irrespective of whether a bid(s) has the highest NPV of the
bids received, GTN may reject bids for service that (i) may
detrimentally impact the operational integrity of
Transporter's system; (ii) do not satisfy all the terms of the
specified posting; or (iii) contain terms and conditions other
than those set forth in GTN's FERC Gas Tariff.
If the NPV of any Negotiated Rate revenues would exceed the
NPV of the revenue stream produced by paying the Maximum Rate
over the same period of time, then the Shipper bidding the
Negotiated Rate shall be considered to be paying the Maximum
Rate for purposes of determining the bid with the greatest