Caledonia Gas And Storage
Original Volume No. 1
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Effective Date: 12/05/2007, Docket: RP08- 57-000, Status: Effective
First Revised Sheet No. 30 First Revised Sheet No. 30 : Effective
Superseding: Superseding Original Sheet No. 30
(a) Notice of open season. If Caledonia elects to conduct an open season
pursuant to Section 3.1, above, or if an open season is required pursuant to
Section 8 of Rate Schedule FSS, Caledonia shall post notice of the open season
on its Internet Web Site, at least ten (10) Days prior to commencement of the
open season. Such notice shall set forth when the open season begins and
ends, where interested parties may submit requests for firm storage services,
any minimum rates or length of term, if any, Caledonia will accept for the
available capacity, and how interested parties may obtain forms for requesting
service and additional details about the open season.
(b) Duration. The open season shall commence at the time and Day
specified and for the term indicated in the notice of open season. During
this time, Caledonia will accept requests for the firm storage services to be
available in its Facility.
(c) During an open season, Caledonia will accept requests for firm storage
service(s) from Potential Customers. Capacity will be allocated to those
Customers offering to pay the highest negotiated rates. More specifically,
capacity will be allocated to those Customers offering to pay the highest
present value to Caledonia over the term of each Service Agreement. Caledonia
reserves the right to give first priority to bids where: (i) the reservation
charges meet or exceed a threshold value; and (ii) the length of term meets or
exceeds a threshold value. If, upon allocation of capacity to those Customers
meeting these criteria, capacity remains, Caledonia may, in its reasonable
judgment, allocate capacity to Customers offering bids meeting other criteria.
Present value of the reservation charges shall be calculated in accordance
with the following formula:
PV = 1 - (1 + i)-n x (R) x (V)
Where: i = The prime rate as published by the Wall Street Journal on
the first Day of the open season plus five percent (5%) (or 500 basis points),
the sum of which is then divided by twelve (12).
n = The term of the Service Agreement, in Months.
R = the reservation charge(s) bid
V = MSC (Volume stated in Dth)
(d) During the allocation process of an open season, should requests for
firm storage service exceed available capacity, capacity will first be
allocated to the highest present value bids received for firm storage service.
When remaining unallocated capacity is not sufficient to meet the next highest
present value bidder’s capacity requirements for firm storage service, that
next highest bidder has the option of declining the remaining capacity.
Caledonia will then offer the remaining capacity to the next highest bidder,
until all the remaining capacity is allocated or until such time that the next
highest bidder’s terms did not meet the minimum requirements set forth in the
(e) Should the next highest present value bid in Section 3.2(c) above be
submitted by two or more Customers (e.g., tied bids) and there is insufficient
remaining capacity available to serve such Customers, then capacity will be
allocated to the Customers on a pro rata basis.