Portland General Electric Company

Original Volume No. 1

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Effective Date: 12/03/2003, Docket: RP04- 48-000, Status: Effective

Original Sheet No. 117 Original Sheet No. 117 : Effective

GENERAL TERMS AND CONDITIONS

(Continued)

22. AVAILABLE CAPACITY (Continued)

22.3 Bidding (Continued)

(f) Creditworthiness. All bidders must comply with Section 11.2 of

the General Terms and Conditions of this tariff. Bidders must

submit a request for pre-qualification for credit in order to

expedite the award process. If, on or before the bid close date, a

bidder fails to pre-qualify for a credit limit equal to or greater

than the economic value of its bid, Transporter may disregard such

bid and, subject to Section 22.6, choose the bid with the next

highest economic value submitted by a creditworthy bidder.

22.4 Awarding.

(a) Within two (2) business days following the bid close date,

Transporter will evaluate the bids received and determine the

winning bid, subject (where applicable) to Section 22.4(d), Section

22.5 and Section 22.6. Bids will be evaluated based on the net

present value of the bid for all bid periods of 72 hours or less.

For bid periods longer than 72 hours, bids will be evaluated based

on either the net present value or the alternative criteria for

determining incremental economic value that is specified by

Transporter it its posting.

(b) For purposes of this Section 22, the incremental economic value

of a bid is (1) the total net present value of the reservation

charge bid for transportation capacity (including bids to extend

the term of existing service agreements); or (2) the value

determined using the alternative criteria specified by Transporter

in its posting. The net present value shall be computed from the

monthly demand and capacity, or reservation revenues to be received

over the term of the service agreement, using the discounted cash

flow rate of return methodology, with the rate of discounting, as

updated from time to time, to be published on Transporter's EBB/

Designated Site. Bids for capacity under existing

service agreements will be deemed to have no incremental economic

value for award purposes, except to the extent bidder proposes to

extend the term of its existing service agreement.