Transcolorado Gas Transmission Company LLC
Second Revised Volume No. 1
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Effective Date: 12/28/2007, Docket: RP08-167-000, Status: Effective
Original Sheet No. 231 Original Sheet No. 231 : Effective
GENERAL TERMS AND CONDITIONS
6. CAPACITY RELEASE BY FIRM SHIPPERS (Continued)
6.10 Bid Evaluation Procedure.
(a) Unless specifically requested otherwise by a Releasing
Shipper in its Capacity Release Request, Qualified Bids for released capacity
shall be evaluated pursuant to Sections 6.10(b) through 6.10(g) below. Any
Qualified Bid which does not meet a minimum price condition stated in the
Capacity Release Request shall be rejected outright. Any Qualified Bid with a
contingency must have such contingency eliminated before 3:00 p.m. CCT
following the close of the open season, unless the Releasing Shipper's offer
has specified a later time; otherwise, such Qualified Bid will be rejected.
(b) TransColorado shall calculate a Bid Value and Unit Bid
Value for each Qualified Bid and Prearranged Release (if any), and shall
calculate the Winning Bid Value, as follows:
(i) For each month, the volume and reservation charge per
Dth stated in the Qualified Bid shall be multiplied together to derive a gross
monthly revenue figure. If the Qualified Bids contain volumetric-based charges
permitted by the Capacity Release Request, then the gross monthly revenue
figure shall be equal to any minimum amount designated by the bidder to be
billed as a reservation charge even if there is no (or insufficient) flow.
(ii) Each gross monthly revenue figure shall be discounted
to a net present value figure as of the first day of the capacity release as
sought in the Capacity Release Request, using the current Federal Energy
Regulatory Commission interest rate as defined in 18 C.F.R. Section
(iii) The net present value figures for the proposed release
shall be summed, and such sum shall be the Bid Value.
(iv) The Unit Bid Value is defined to equal the Bid Value
divided by the product of: (1) the highest volume of capacity (in Dth) sought
in the Qualified Bid for any day; multiplied by (2) the release term (in
months) in the Capacity Release Request; and multiplied further by (3) thirty
and four-tenths (30.4).