Trailblazer Pipeline Company

Fourth Revised Volume No. 1

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Effective Date: 12/28/2007, Docket: RP08-168-000, Status: Effective

Original Sheet No. 120 Original Sheet No. 120 : Effective

 

GENERAL TERMS AND CONDITIONS

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continuous from the commencement of service date to the termination of

service date reflected in the bid.

 

(5) RESERVE PRICE MATRIX In an Initial Open Season,

Trailblazer shall establish a reserve price or reserve price matrix.

Trailblazer may, but is not required to, establish a reserve price or

reserve price matrix in an Additional Open Season.

 

(i) A reserve price defines the minimum price(s) at

which Trailblazer will award the firm capacity covered by the open season,

which price(s) must be equal to or less than the applicable maximum

rate(s). Trailblazer is not obligated to award capacity at less than the

applicable maximum rate unless a lower rate is set out in the reserve

price matrix. In determining whether a reserve price has been met by any

bid, Trailblazer will compare the net present value of the requested

prices in the bid with the net present value of the applicable reserve

price(s). If the reserve price is met, Trailblazer will award firm

capacity to valid bids consistent with the posted bid evaluation criteria

and this Section 6.1(c).

 

(ii) Reserve prices in a reserve price matrix may vary

by relevant elements, including but not limited to term, service type,

Receipt Points, Delivery Points and markets. Differences in "markets",

as that term is used in the prior sentence, shall refer to differences

relating to any of the following: (A) defined geographical areas, where

the value of Trailblazer's services may vary among such geographical

areas due to current or projected differences in competitive

alternatives, regulation, or operational, supply or capacity factors; (B)

customers, where the value of Trailblazer's services may vary by customer

due to current or projected differences in competitive alternatives

available to them or demand their characteristics (including access to

alternative fuels); (C) contract time periods, where the value of

Trailblazer's services may vary due to current or projected differences

in competitive alternatives or market demand at or over different

contract time periods (for example, winter season versus multi-year); (D)

products and services, where the value of Trailblazer's product and

service offerings may vary due to current or projected differences in

competitive alternatives or market demand (provided that this is not

intended to tie separate service together for bidding purposes); or (E)

volumes, where the value of Trailblazer's services may vary due to

current or projected differences in competitive alternatives, market

demand or other factors related to contract volume levels. The reserve

price matrix in an open season may include multiple terms, from one month

or less to multi-year, and shall indicate if firm capacity is only

available for a limited time due to operational or physical constraints

or due to the contractual commitment of such capacity in the future