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. 124 Original Sheet No. 124

 

GENERAL TERMS AND CONDITIONS

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(i) A reserve price defines the minimum

price(s) at which MEP will award the firm capacity covered by the

open season, which price(s) must be equal to or less than the

applicable maximum rate(s). MEP is not obligated to award capacity at

less than the applicable maximum rate unless a lower rate is set out

in the reserve price matrix. In determining whether a reserve price

has been met by any bid, MEP will compare the net present value of

the requested prices in the bid with the net present value of the

applicable reserve price(s). If the reserve price is met, MEP will

award firm capacity to valid bids consistent with the posted bid

evaluation criteria and this Section 2.1(c).

 

(ii) Reserve prices in a reserve price

matrix may vary by relevant elements, including but not limited to

term, service type, Receipt Points, Delivery Points and markets.

Differences in "markets", as that term is used in the prior sentence,

shall refer to differences relating to any of the following: (A)

defined geographical areas, where the value of MEP's services may

vary among such geographical areas due to current or projected

differences in competitive alternatives, regulation, or operational,

supply or capacity factors; (B) customers, where the value of MEP's

services may vary by customer due to current or projected differences

in competitive alternatives available to them or their demand

characteristics (including access to alternative fuels); (C) contract

time periods, where the value of MEP's services may vary due to

current or projected differences in competitive alternatives or

market demand at or over different contract time periods (for

example, winter season versus multi-Year); (D) products and services,

where the value of MEP's product and service offerings may vary due

to current or projected differences in competitive alternatives or

market demand (provided that this is not intended to tie separate

services together for bidding purposes); or (E) volumes, where the

value of MEP's services may vary due to current or projected

differences in competitive alternatives, market demand or other

factors related to contract volume levels. The reserve price matrix

in an open season may include multiple terms, from one Month or less

to multi-Year, and shall indicate if firm capacity is only available

for a limited time due to operational or physical constraints or due

to the contractual commitment of such capacity in the future.