Natural Gas Pipeline Company Of America
Seventh Revised Volume No. 1
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Effective Date: 04/18/2008, Docket: RP08-319-000, Status: Effective
Original Sheet No. 285 Original Sheet No. 285 : Pending
GENERAL TERMS AND CONDITIONS
5. PRIORITY OF SERVICE
5.1 ALLOCATION OF FIRM CAPACITY
This Section 5.1 governs the posting, the allocating among
services and among entities requesting firm services, and the awarding
of firm transmission and storage capacity on Natural's system.
(a) If at any time Natural has transmission capacity
and/or storage capacity which would support additional firm services,
Natural shall make such capacity available to perform firm open access
services. The allocation of such capacity among firm services shall be
determined by Natural, applying objective criteria of the relative
engineering suitability and economic value of the various services.
(b) In assigning priority to otherwise valid bids or
requests for any particular firm service, Natural shall allocate firm
capacity to valid bids or requests which generate the highest economic
value for Natural. The criteria for determining the highest economic
value are discussed in Section 5.1(c). In applying such criteria where
a Negotiated Rate or Negotiated Rate Formula is involved, the value
assigned to a request which includes a Negotiated Rate or Negotiated
Rate Formula shall be limited by the Recourse Rate as provided in
Section 49 of these General Terms and Conditions. The procedures to
award firm capacity are described in Section 5.1(c). Certain posting
requirements for firm capacity are set out in Section 5.1(e).
(c) CAPACITY AWARD PROCEDURES
This subsection sets out the procedures to be followed
by Natural in awarding all firm forward haul transmission segment
capacity and firm storage capacity on its system; provided, however,
that these procedures do not apply to the initial allocation of such
firm capacity created by the construction of new facilities (including
both extensions and expansions of Natural's system).
(1) INITIAL OPEN SEASON Natural shall conduct an
Initial Open Season for all Posted Capacity. As used in this Section
5, the term "Posted Capacity" shall mean all firm forward-haul
transmission segment capacity and firm storage capacity currently
available or becoming available in the future which Natural is
obligated to post under Section 5.1(e)(1).