Williston Basin Interstate Pipeline Co.

Second Revised Volume No. 1

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Effective Date: 03/23/2006, Docket: RP06-228-000, Status: Effective

Second Revised Sheet No. 232A.01 Second Revised Sheet No. 232A.01 : Effective

Superseding: First Revised Sheet No. 232A.01

GENERAL TERMS AND CONDITIONS (Continued)

 

10. ALLOCATION OF UNCOMMITTED CAPACITY (Continued)

 

Transporter will use a net present value per unit of demand calculation

described herein to determine the priority of operationally feasible

requests and/or bids. The net present value calculation will be

performed by discounting the revenues to be received (i.e., the stream

of cash flows created by the reservation/demand charges) utilizing the

amount of capacity requested and the term of service (or period over

which the cash flows will be generated) and a discount rate equivalent

to the overall return on rate base underlying Transporter's currently

effective rates. The present value of the revenues to be received will

be divided by the MDDQ or MSDQ, as applicable, to arrive at the net

present value per unit of demand. In the event a request or bid

specifies a term greater than twenty (20) years in length, the term-

portion of the net present value calculation will be limited to twenty

(20)

 

 

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