Tuscarora Gas Transmission Company

First Revised Volume No. 1

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Effective Date: 04/01/2009, Docket: RP09-08-000, Status: Effective

Original Sheet No. 68 Original Sheet No. 68

 

GENERAL TERMS AND CONDITIONS

 

3. REQUESTS FOR SERVICE/CREDIT EVALUATIONS (Continued)

 

3.2 Available Capacity. (Continued)

 

(b) Unsubscribed Capacity. Transporter will post unsubscribed

capacity on its Internet website. A requestor that submits a

valid request may submit a bid for the unsubscribed capacity

subsequent to Transporter's posting of such capacity on the

website. The Bid Period will be a minimum of 1 business day for

capacity available for up to one month; a minimum of 3 business

days for capacity available for greater than one month but less

than one year; and a minimum of 5 business days for capacity

available for one year or more. All bids not withdrawn prior to

the close of the Bidding Period shall be binding. At the end of

the Bidding Period, Transporter will evaluate any bids submitted

and determine the bid(s) having the greatest economic value as

determined in Section 3.2(c).

 

If no bids are submitted, or if Transporter does not accept any

bid(s), Transporter will award such capacity on a first-come,

first-served basis to shippers that offer the maximum recourse

rate or an acceptable discounted or negotiated rate.

 

(c) Valuation of Bids. Unless otherwise specified in its open season

posting, when evaluating bids for firm capacity with terms of less

than one year, the bid(s) with the greatest economic value will be

the bid(s) with the highest net present value ("NPV") based on (1)

the reservation charge and any proposed usage charge revenues

guaranteed by a minimum volume commitment or otherwise that

requestor(s) would pay at the rates the requestor(s) has bid, and

(2) the term of service specified in the request. If the economic

values of separate bids are equal, then service shall be offered

to such requestors on a pro-rata basis.

 

The NPV is the discounted cash flow of the bid according to the

following formula, net of revenues lost or affected by the

requests for service:

n

(1 + i) - 1

Present Value per = P * R *______________

n

i(1 + i)

 

(Continued)