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. 432 Original Sheet No. 432 : Pending







Example (1) - Awarding by Best Bid



Assume: Capacity Release = 100,000/day for 5 years


Qualified Bids:



Maximum Bid Bid Minimum

Volume Term Price Bid Volume

----------- ------- -------- ----------


Bid (a) 40,000/day 5 years $.18 0

Bid (b) 40,000/day 5 years $.17 0

Bid (c) 40,000/day 5 years $.15 0



Winning Qualified Bids: Bid (a) has the highest Bid Value and would

be awarded 40,000; Bid (b) has the next highest bid value and would

be awarded 40,000; Bid (c) would be awarded the remainder of the

capacity (20,000).




Example (2) - Awarding with Minimum Bid Volumes



The assumptions remain the same as in Example 1, except that we

assume that Bid (c) has a Minimum Bid Volume of 40,000.


Winning Qualified Bids: Bids (a) and (b) would be allocated their

Maximum Bid Volume of 40,000. Bid (c) would not be awarded any

capacity since their Minimum Bid Volume is 40,000. 20,000 would

remain with the Releasing Shipper.