Tennessee Gas Pipeline Company
FIFTH REVISED VOLUME NO. 1
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Effective Date: 05/01/2000, Docket: RP00- 229-000, Status: Effective
Third Revised Sheet No. 333 Third Revised Sheet No. 333 : Effective
Superseding: Second Revised Sheet No. 333
GENERAL TERMS AND CONDITIONS (continued)
Bid TQ = the TQ stated in the Bid (measured in
dekatherms per day).
I = interest rate per day (which shall be the then current
maximum yield on five year U.S. Government Treasury notes
divided by 365); (Transporter will post the current
Treasury note rate on PASSKEY); and
n = the lesser of (i) term proposed by the Bidder, in days, or
(ii) 720 days.
(c) If the net revenue method is chosen, Transporter shall determine the
bid or bids having the highest net revenue (NR) using the following
NR = (Bid Rate) x (Bid Term) x (Bid TQ)
Bid Rate = the daily charge which the Bidder has agreed to pay;
for reservation rate bids, the charge is calculated
by dividing the bid rate received from the Bidder by
30.4 days per month (average days per month in a
Bid Term = the term proposed by the Bidder, in days.
Bid TQ = the TQ stated in the Bid, measured in dekatherms.
(d) If a Release Request includes a Prearranged Bidder, then the released
transportation rights shall be awarded to the Prearranged Bidder (i)
if its Bid has a value, determined in accordance with Section 11.6(a),
which is equal to or higher than the highest value of the Bids
submitted by all other Bidders, or (ii) if the Prearranged Bidder
agrees to match any Bid having a higher value within the time period
provided by Section 11.7.
(e) If only one Bidder has submitted a Bid which reflects the highest
value, then the transportation rights shall be awarded to that Bidder,
subject to any Prearranged Bidder's exercise of its right of matching
as set forth above.
(f) Tie-breaking Procedures: The Releasing Shipper may specify a tie-
breaking procedure to be used in the event that two or more Bidders
have submitted Bids which reflect the same highest value, subject to
any Prearranged Bidder's exercise of its right of matching. If no tie-
breaking procedure is specified by the Releasing Shipper, the released
transportation rights will be awarded to the Bid earliest received by