White River Hub, LLC
Original Volume No. 1
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Effective Date: 11/01/2008, Docket: RP08-645-000, Status: Effective
Original Sheet No. 83 Original Sheet No. 83
GENERAL TERMS AND CONDITIONS
6.13 Awarding of Released Capacity. When the capacity-release service
provider (White River) makes awards of capacity for which there have been
multiple bids meeting minimum conditions, the capacity-release facilitator
(White River) will award the bids, best bid first, until all offered capacity
(a) Temporarily released capacity shall be awarded to the
Bidding Shipper that makes the best offer based on the criteria specified by
the Releasing Shipper, or, if no criteria were specified, based on the
present value formula defined below.
(b) Permanently released capacity shall be awarded to the
Replacement Shipper that offers a rate and term yielding a present value equal
to or greater than the present value of the Releasing Shipper's transportation
service agreement. The present value shall be calculated using the formula
stated below. Acceptance shall be conditioned upon the Replacement Shipper
satisfying White River's creditworthiness standards and eligibility
(c) 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.
(d) If two or more bids are of equal value, the capacity shall
be awarded according to the criteria specified by the Releasing Shipper. If
no method for awarding bids of equal value is specified, the capacity shall
be awarded to those bidders pro rata based on the ratio the quantity bid by
those bidders bears to the total quantity bid by all bidders multiplied by
the quantity of capacity released.
(e) If no bid is submitted meeting all of the rates, terms and
conditions in the Releasing Shipper's release notice, then no award of
capacity shall be made.