Portland Natural Gas Transmission System

Second Revised Volume No. 1

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Effective Date: 03/01/2009, Docket: RP09-338-001, Status: Effective

Substitute First Revised Sheet No. 354 Substitute First Revised Sheet No. 354

Superseding: Original Sheet No. 354

 

GENERAL TERMS AND CONDITIONS (Continued)

 

(a) Prearranged Replacement Shipper. If, at the same time it provides its

Release Notice to Transporter, the Releasing Shipper provides Transporter with

notice of a prearranged agreement with a prospective Prearranged Replacement

Shipper, Transporter will post notice of that arrangement on its Interactive

Internet Website in accordance with the provisions of Section 11.7 herein. In

accordance with the timeline specified in Section 11.6, Transporter shall

evaluate all bids that satisfy the minimum terms of the Release Notice as

follows:

 

(1) For releases with a term greater than one year, if the Prearranged

Replacement Shipper's bid is the highest Present Value, rate, or net revenue,

the bid methodology to be chosen by the Replacement Shipper, up to the maximum

Recourse Reservation charge that Transporter is authorized to charge the

Releasing Shipper, then Transporter shall select the Prearranged Replacement

Shipper as the Successful Bidder.

 

(2) For releases with a term of one year or less, if the Prearranged

Replacement Shipper's bid is the highest Present Value, rate, or net revenue,

the bid methodology to be chosen by the Replacement Shipper, then Transporter

shall select the Prearranged Replacement Shipper as the Successful Bidder.

 

In either case, if a "better offer" (i.e., an offer that meets all other

minimum terms of the Release Notice while providing a higher Present Value,

rate, or net revenue, the bid methodology to be chosen by the Replacement

Shipper, up to the maximum Recourse Rate reservation charge Transporter is

authorized to charge for releases with a term greater than one year, or, for

releases with a term of one year or less, a higher rate) is received,

Transporter shall post the better offer on its Interactive Internet Website,

and the Prearranged Replacement Shipper shall have the opportunity to match

that offer, in accordance with the timeline specified in Section 11.6. If the

Prearranged Replacement Shipper matches the better offer, then Transporter

shall select the Prearranged Replacement Shipper as the Successful Bidder.

For releases with a term greater than one year, the Prearranged Replacement

Shipper shall not be required to pay a rate higher than the maximum applicable

Recourse Rate.

 

If the Prearranged Replacement Shipper does not match the better offer,

Transporter shall select the bidder(s) that made the better offer as the

Successful Bidder(s). If two or more bidders made the same better offer, then

the capacity will be prorated in the manner described in Section 11.9(c)

herein.

 

(b) No Prearranged Replacement Shipper. If Transporter receives notice of a

Releasing Shipper's election to release capacity, without receiving notice of

a Prearranged Replacement Shipper, Transporter shall post that notice on its

Interactive Internet Website in accordance with the provisions of Section 11.7

herein. Within one (1) Business Day of the end of the bidding period,

Transporter shall evaluate all bids that satisfy the minimum terms of the

Release Notice. The bid providing the highest Present Value, rate, or net

revenue, the bid methodology to be chosen by the Replacement Shipper, up to

the maximum Recourse Rate reservation charge that Transporter is authorized to

charge for releases with a term greater than one year only, or, a higher rate

for capacity releases with terms of one year or less, while meeting all other

minimum terms of the Release Notice, will be selected as the best bid. If two

or more bidders made bids that provide the same highest Present Value, then

the capacity will be prorated in the manner described in Section 11.9(c)

herein.