MidContinent Express Pipeline LLC

Original Volume No. 1

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Effective Date: 04/10/2009, Docket: RP09-136-000, Status: Effective

Original Sheet No. 122 Original Sheet No. 122

 

GENERAL TERMS AND CONDITIONS

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Leased Capacity. Incremental revenue is the additional revenue MEP

would collect from a Shipper under any bid or request over and above

the revenue MEP would otherwise have received after taking into

account any revenue lost or affected by the bid or request (i.e.,

where an existing capacity holder submits a bid or request which is

contingent upon turnback by that existing capacity holder of an

existing capacity commitment, only the value of such a bid or request

net of the revenue which would be lost to MEP due to the turnback of

the existing contractual commitment will be considered).

 

(2) ONLY GUARANTEED REVENUE CONSIDERED

 

In the determination of highest economic

value, MEP shall consider only reservation charge revenue and any

other guaranteed revenue under bids or requests which meet any

applicable reserve price, excluding revenue associated with Leased

Capacity. In the case of a bid or request for firm service involving

a Negotiated Rate or Negotiated Rate Formula, the rules for

calculating net present value set out in Section 30 of these General

Terms and Conditions shall apply.

 

(3) POSTING OF CRITERIA

 

MEP shall post the criteria to be used in the

determination of highest economic value for comparing valid bids in

any open season and for comparing pending requests which are valid and

competing. The posting will consist of a net present value formula,

together with all relevant factors and parameters. The discount rate

to be utilized in the NPV formula shall be the FERC approved interest

rate. These criteria shall be posted continuously on the

Informational Postings portion of MEP's Interactive Website. MEP may

change the criteria at any time in a manner not inconsistent with the

other provisions of this Section 2.1(c), but the revised criteria may

only be applied to an open season the posting of which commenced at

least one (1) Business Day after the change in criteria has been

posted. MEP cannot change the criteria for any on-going open season.

The revised criteria shall apply immediately to all requests received

after the change has been posted. In addition, the posting for each

individual open season will include the following elements: the date