Texas Gas Transmission, LLC

Third Revised Volume No. 1

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Effective Date: 03/08/2010, Docket: RP10-366-000, Status: Effective

Original Sheet No. 2302 Original Sheet No. 2302

 

GENERAL TERMS AND CONDITIONS

Section 11

(cont'd)

 

(e) At the end of the bidding period, Texas Gas will determine the best bid or

combination of bids ("Best Bid(s)") based upon the highest NPV. The NPV

will be determined for each bid, and bids shall be ranked in descending

order based on NPV. All capacity offered in the Auction Notice may be

awarded, based on the NPV ranking of the bids, subject to the Original

Customer's right to match in accordance with Section 11.1(f).

 

(i) If two or more bids yield the same NPV and the total capacity of

the bids is equal to or less than the total of the capacity

auctioned, Texas Gas will award to each bidder its total bid.

 

(ii) If two or more bids yield the same NPV and the total capacity of

the bids is greater than the total auctioned capacity, the bids

will be considered "Competing Bids" and the Best Bid(s) will be the

bid(s) that yield the highest NPV over the shortest period of time.

 

(iii) After this process, if two or more Competing Bids yield the same

NPV over the same period of time, then the Best Bid(s) will be the

bid(s) submitted first in time.

 

(f) For capacity auctioned following a Request for Service, the Best Bid(s)

will be presented to the Original Customer submitting the original Request

for Service. The Original Customer will have the opportunity to match

either (i) the Best Bid or combination of Best Bids, including volume(s),

point(s), and term(s), or (ii) the NPV of the Best Bid or combination of

Best Bids before 4:00 p.m., Central Time, of the second Business Day

following the close of the bid period.

 

(i) If the Original Customer timely matches the Best Bid or combination

of Best Bids, or if no Best Bid is submitted, Texas Gas will award

the applicable firm transportation capacity to the Original

Customer and shall enter into a service agreement with such

Customer. If there is more than one Best Bid, the Original

Customer must timely match the aggregate NPV of all Best Bids.

 

If the Original Customer elects to match the NPV of the Best

Bid(s), the Original Customer's bid will be adjusted in the

following manner in order to match such NPV. The applicable bid

rate will be increased to the amount needed to achieve the same

NPV(s), keeping the same term as the Original Customer's initial

term, provided that the bid rate will not be increased to a level

greater than the applicable maximum rate. If necessary, once the

rate has been increased to the applicable maximum rate, the term

will be extended, as needed, to the end of the month during which

the same NPV of the Best Bid(s) is achieved.

 

If the Original Customer elects to match the NPV of the Best Bid(s)

and the Best Bid(s) include Point(s) that vary from the Requested

points, the Original Customer may utilize the Point(s) set forth in

the Best Bid(s) provided that such utilization of the Point(s)

included in the Best Bid(s) would not result in a shorter path or

lower rate than was included in the Original Customer's bid.

 

(ii) If the Original Customer does not match the Best Bid(s), Texas Gas

shall award the applicable firm transportation capacity to the

Customer(s) that submitted the Best Bid(s) in accordance with

Section 11.1(e). Following the award, Texas Gas will enter into a

service agreement with the party or parties receiving the awarded

capacity. Any remaining capacity will continue to be posted as

available firm capacity on Texas Gas' Internet Website.