Trunkline LNG Company, LLC

Second Revised Volume No. 1-A

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Effective Date: 08/01/2009, Docket: RP09-799-000, Status: Effective

First Revised Sheet No. 102 First Revised Sheet No. 102

Superseding: Original Sheet No. 102

 

GENERAL TERMS AND CONDITIONS

(Continued)

 

 

 

10. CONTRACTING FOR UNSUBSCRIBED FIRM CAPACITY

 

This Section 10 governs the order in which requests for service

shall be accommodated when unsubscribed firm capacity, other

than released capacity, becomes available. It does not govern

scheduling, which is governed by Section 3 herein. Requests for

firm capacity shall be accommodated in the following manner and

subject to the following conditions and limitations:

10.1 In order to be eligible for firm capacity, a party

requesting service (requestor) must submit a valid request

in accordance with the provisions of Section 2 herein.

 

10.2 TLNG will post on the Web Site available Terminal capacity

and Alternate Vaporization capacity. A requestor that

submits a valid request may submit in writing a bid for

the available capacity at any time. In the event of

multiple bids, TLNG will evaluate the bids and determine

the bid having the greatest economic value as determined

in Section 10.3.

 

10.3 The criteria for determining which requestor has submitted

the bid with the greatest economic value shall be the Net

Present Value (NPV) of the Reservation Charge that

requestor would pay at the rates requestor has bid, which

shall not be less than the Minimum Rate nor greater than

the Maximum Rate, as stated on the currently effective

Tariff Sheet governing such service, over the term of

service specified in the request, utilizing a ten percent

(10%) annual discount factor. Shippers requesting service

at a Negotiated Rate which exceeds the Maximum Rate will

be considered to be paying the Maximum Rate for purposes

of determining the bid with the greatest economic value.

For purposes of calculating each requestor's NPV, the term

will be limited to ten (10) years. If the economic values

of separate service requests are equal, then service shall

be offered in sequence starting with the request with the

earliest date. If separate service requests have equal

economic values and the same date of request, service

shall be offered to such requestors on a pro rata basis.

 

10.4 If TLNG accepts the winning bid and tenders a Service

Agreement, requestor shall complete and return the Service

Agreement within thirty (30) days.