Southern Natural Gas Company
Seventh Revised Volume No. 1
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Effective Date: 09/01/2009, Docket: RP09-427-000, Status: Suspended
First Revised Sheet No. 147 First Revised Sheet No. 147
Superseding: Original Sheet No. 147
GENERAL TERMS AND CONDITIONS
The objective criteria for evaluating NPV may include, without limitation, the quantity of
prepayment bid, the number of months' charges bid, the date on which the prepayment would be
received and applied to charges, and such other factors available and included in the bids
that COMPANY has chosen to evaluate. The NPV shall include only revenues generated by the
reservation rate component(s). With respect to evaluating bids at less than either the
recourse, negotiated or discounted rate otherwise applicable to SHIPPER's charges, COMPANY
reserves the right to evaluate bids based on the percent of the maximum rate bid. For
negotiated rate COMPANY may specify a maximum term to be bid. For purposes of its NPV
evaluation, COMPANY may consider the aggregate NPVs of two or more bids.
(c) Prorating of Prepayment Offers
If COMPANY receives two (2) or more bids that produce comparable net present values, then
aggregate amount of the prepayments to be accepted will be allocated to the comparable requests
on a pro rata basis. A party must specify in its request whether it is willing to accept a
prepayment on a pro rata basis pursuant to this Section. If any party declines to accept a
prorated prepayment, such party's request shall be null and void and COMPANY shall be entitled
to reallocate the prepayment among the other comparable requests.
(d) Acceptance of Prepayment Offers
COMPANY's posting, and any updates thereto, may specify the deadline for bids, the time that
COMPANY may take to evaluate and compare bids, and the manner in which offers will be accepted.
Unless specified otherwise in the posting, bids for prepayment are binding on shipper.
(e) Posting of Accepted Prepayments
COMPANY shall post a summary of the prepayment offer(s) accepted by COMPANY without disclosing
the identity of the SHIPPER.
(f) Other Provisions
Prepayments received by COMPANY under this section shall not qualify as security deposits for
purposes of creditworthiness, nor shall security deposits for purposes of creditworthiness be
considered as prepayments under this section.
16. ALLOCATION OF CAPACITY AND THE COMPANY'S MERCHANT SERVICE GAS SUPPLY
16.1 Applicability of this Section 16:
The allocation of capacity among all transportation services in times of transmission capacity
constraints and/or the allocation of gas among COMPANY'S sales services in times of gas supply
deficiencies in the COMPANY'S gas supply shall be governed by the provisions of this Section
16.2 Allocation of Transmission Capacity to Firm and Interruptible Transportation
(a) If, on any day, the COMPANY determines it has insufficient transmission capacity to
serve all SHIPPERS' firm and interruptible transportation services for that day, the
COMPANY shall first allocate all of its available transmission capacity to firm
(b) If the COMPANY further determines that it has insufficient transmission capacity to
serve all of its firm transportation services on that day, the COMPANY shall allocate
all of its reduced transmission capacity to the firm transportation services only based
on the ratio of each SHIPPER'S total Transportation Demand to the total Transportation
Demand of all firm transportation SHIPPERS. Each firm transportation SHIPPER shall be
allocated its proportionate share of the available transmission capacity based on its
percentage share calculated from this ratio.