Hardy Storage Company, LLC
Original Volume No. 1
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Effective Date: 04/01/2007, Docket: CP05-150-003, Status: Effective
Original Sheet No. 63 Original Sheet No. 63 : Effective
GENERAL TERMS AND CONDITIONS (Cont’d)
(c) Assessing Bids.
(1) Seller shall assess the bids to assure that capacity is
available. If capacity is not available, Seller shall reject the bids
and advise Customer.
(2) Seller shall evaluate bids based upon their net present value
as set forth below, taking into account the price and term offered.
Seller shall use the current Commission-approved interest rate in
calculating the net present value of bids. Capacity shall be awarded,
as set forth in paragraph (d) below, based on the acceptable highest
value of the bids offered to Seller calculated in accordance with this
Section. Seller shall publish the winning bids on its EBB.
(d) Awarding Capacity; Pro Rata Awards To Equal Bidders. Consistent
with the bid assessment criteria set forth in paragraph (c) immediately
above, Seller shall award capacity: (i) first to an existing capacity holder
that exercises a right of first refusal to match the highest value bid; and
(ii) then to the bidder submitting the highest value bid or if two or more
bidders submit equal acceptable highest value bids then pro rata to all
bidders that submitted equivalent highest value bids based upon daily
(e) Binding Nature of Bids. All bids are binding; provided, however,
that a bidder may decline to accept a pro rata allocation of capacity
resulting in an award of less than the full capacity requested if such
Customer notifies Seller of that decision through Seller's EBB within one
hour of Seller's notice to that Customer of the pro rata allocation.
Otherwise, if a successful bidder fails to execute a Service Agreement within
15 days after such Service Agreement is tendered by Seller, (or such later
date established by Seller through notice to Customer), Seller will then
award the capacity to the next acceptable bidder on the basis of the highest
net present value, as described in this Section. Customers failing to return
such Service Agreement shall be removed from Seller's Approved Bidders List
for six months, or less than six months if agreed to in writing by the
Seller. Nothing herein shall restrict Seller from pursuing any other
remedies it may have against a Customer failing to execute and return a
Service Agreement tendered by Seller. If Seller finds no other bid
acceptable, the capacity shall be posted again and thereby made available for
a new round of bids.