East Tennessee Natural Gas Company
Second Revised Volume No. 1
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Effective Date: 11/02/1998, Docket: RP99- 59-000, Status: Effective
Third Revised Sheet No. 140 Third Revised Sheet No. 140 : Superseded
Superseding: Second Revised Sheet No. 140
GENERAL TERMS AND CONDITIONS (Continued)
(b) The deadlines set forth in this Section 17.6 are only applicable if (i) all the
information provided by the parties to the transaction is valid and the
Replacement Shipper has been determined to be creditworthy before the capacity
release bid is tendered; and (ii) there are no special terms or conditions of the
release. Nominations by the winning bidder may be submitted for the next gas flow
day or at the times otherwise specified for intra-day or hourly nominations.
17.7 Determination of Successful Bidder of Transportation Rights
(a) Bid Evaluation Methodologies: The Releasing Shipper shall specify in the Release
Request one of the following bid evaluation methodologies: (i) highest rate, (ii)
net revenue, or (iii) present value. A Release Request submitted specifying one
of these methods shall be accorded the timeline treatment described in Section
17.6. However, the Releasing Shipper may choose another bid evaluation method.
This request shall be accorded the timeline treatment described in Section 17.6.
Transporter shall apply the method chosen to determine the successful Bidder.
Transporter's application of Releasing Shipper's bid evaluation method shall
result in as many successful bidders as mandated thereby, provided that the
volumes released to each successful bidder shall be no less than one dekatherm.
If the Releasing Shipper desires to award to more than one winner, the Releasing
Shipper should allow for the acceptance of partial TQ bids.
(b) If the present value method is chosen, then Transporter shall determine the bid or
bids having the highest net present value ("PV") based on the following formula:
PV= (Bid Rate) x (Bid Quantity) x 1-(1+i)
Bid Rate = for firm releases, the reservation charge that the Bidder has
agreed to pay; for recallable releases, the usage charge that the
Bidder has agreed to pay.
Bid Quantity = the Released Transportation Quantity stated in the Bid.