White River Hub, LLC
Original Volume No. 1
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Effective Date: 10/01/2009, Docket: RP09-1027-000, Status: Effective
First Revised Sheet No. 68 First Revised Sheet No. 68
Superseding: Original Sheet No. 68
GENERAL TERMS AND CONDITIONS
5.6 Bidding Conditions.
(a) A bid may not be withdrawn and shall be binding on the
(b) A Bidding Shipper may not bid a reservation charge less
than the minimum reservation charge nor more than the maximum reservation
charge specified by the tariff, unless it is a negotiated rate, nor may the
bid exceed the quantity of available capacity or the term specified by White
River. Negotiated rate bids above the maximum reservation charge, will be
evaluated using the maximum reservation charge.
(c) Shipper's use of its logon and password on any Customer
Activities Web site transaction screen is deemed to be the party's consent to
be bound by the transaction.
5.7 Awarding of Capacity. Capacity requested during the bid period
shall be awarded to the Shipper whose bid offers a rate and term that yields
the highest present value and whose terms and conditions are acceptable to
White River. The present value shall be calculated using the formula stated
below. White River's acceptance of a bid shall be conditioned upon the
Shipper satisfying White River's creditworthiness standards and eligibility
(a) Present value formula:
(Monthly Reservation Charge ) x [1-(1+i)-n ]=Present Value
( Per Unit ) [ i ] per Unit
Where: i = interest rate per month, i.e., overall rate of
return divided by 12 months.
n = term of the agreement, in months.
(b) If two or more firm Shippers have the same present value and
White River's capacity is insufficient to serve the Shippers, capacity will be
allocated pro rata between these firm Shippers.
(c) White River is not obligated to award capacity unless a bid
meets the rates, terms and conditions specified in White River's notice.
(d) To document the award of the capacity to the successful
Bidding Shipper, White River will place a service agreement between White
River and the Bidding Shipper on the Customer Activities Web site conforming
to the terms of the Shipper's bid. Since the Bidding Shipper is bound by its
bid, no further Shipper acceptance will be required.