Total Peaking Services, L. L. C.
Original Volume No. 1
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Effective Date: 04/01/1998, Docket: CP96-339-001, Status: Effective
Original Sheet No. 88 Original Sheet No. 88 : Effective
GENERAL TERMS AND CONDITIONS
(Continued)
23. CAPACITY RELEASE (Continued)
23.6 Best Bid (Continued)
(a) Total Peaking shall apply the standard or criteria
for such determination specified by the Releasing
Customer, including the standard to be used for
breaking ties. Any standard or criteria so
specified must be objective, economic, not unduly
discriminatory, not contrary to applicable
provisions of this FERC Gas Tariff, applicable to
all potential Replacement Customers and require
Total Peaking in applying such standard to exercise
no more than a ministerial function. The Releasing
Customer shall indemnify and hold Total Peaking
harmless from and against all demands, losses,
claims, expenses, causes of action and/or damages
suffered or incurred by Total Peaking arising out of
or related to any determination of a "best bid"
pursuant to a standard specified, supplied, approved
or provided by Releasing Customer.
(b) In default of Releasing Customer specifying a bid
evaluation standard, Total Peaking shall determine
the bid or bids generating the highest net present
value, using a 10% discount factor, based on the
rate bid (reservation or demand component), the
applicable quantity(ies) and term or period bid
upon.
23.7 Qualification of Prospective Replacement Customer. A prospective
Replacement Customer must satisfy all requirements of the
applicable rate schedule and the General Terms and Conditions of
this FERC Gas Tariff. Prior to submitting a bid pursuant to this
section, a bidder must pre-qualify as a prospective Replacement
Customer by submitting a credit application as provided for in
Section 3.2 of these General Terms and Conditions specifying that
the submission is for the purpose of pre-qualifying to submit
bids on released capacity. Total Peaking will apply its
creditworthiness criteria to assess the submissions.