Rendezvous Pipeline Company, L.L.C.
Original Volume No. 1
Contents / Previous / Next / Main Tariff Index
Effective Date: 02/08/2007, Docket: RP07- 6-000, Status: Effective
Original Sheet No. 49 Original Sheet No. 49 : Pending
(g) The Economic Value of a bid: The total net
present value of the reservation charge bid for
the release of firm capacity. The net present
value shall be computed from the monthly demand
and capacity, or reservation revenues to be
received over the term of the release contract,
using the discounted cash flow rate of return
methodology, with the rate of discounting, as
updated from time to time, to be posted on
Transporter's Designated Site.
For the capacity release business process timing
model, only the following methodologies are
required to be supported by capacity release
service providers and provided to Releasing
Shippers as choices from which they may select
and, once chosen, should be used in determining
the awards from the bid(s) submitted. They are:
1) highest rate, 2) net revenue and 3) present
value. Other choices of bid evaluation
methodology (including other Releasing Shipper
defined evaluation methodologies) can be accorded
similar timeline evaluation treatment at the
discretion of the capacity release service
provider. However, Transporter is not required to
offer other choices or similar timeline treatment
for other choices, nor, is Transporter held to the
timeline should the Releasing Shipper elect
another method of evaluation.
(h) Open Season: The minimum number of Business Days
allowed for posting releases and accepting bids.
19.3 General Provisions.
(a) Any Shipper is eligible to release for use by
another party all or part of firm capacity for
which the Releasing Shipper pays a monthly
reservation charge. Capacity to be released shall
be defined as capacity between a Receipt Point and
a Delivery Point, for use by another party for a
minimum term of one (1) Day and a maximum term not
to exceed the remaining term of the Releasing
Shipper's firm Service Agreement.
(b) Any Replacement Shipper that has previously
contracted for released capacity may also release
the capacity to another party, thereby becoming a
Releasing Shipper, subject to the requirements of
this Section 19.
(c) Any Potential Replacement Shippers may submit to
Transporter by facsimile transmission, Internet
email or other mutually agreeable means of
electronic communication offer(s) to purchase
released capacity. If an offer to purchase
results in a capacity release being offered, such
release is subject to the bidding requirements of
this Section. Offers to purchase capacity must
include desired receipt and delivery point(s),
contract volume, and contract term.
(d) All release requests under Section 19.4 below and
bids for released capacity under Section 19.5
below must be submitted to Transporter by
facsimile transmission, Internet email or other
mutually agreeable means of electronic