East Tennessee Natural Gas Company

Second Revised Volume No. 1

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Effective Date: 05/01/2000, Docket: RP00-245-000, Status: Effective

Second Revised Sheet No. 140A Second Revised Sheet No. 140A : Superseded

Superseding: First Revised Sheet No. 140A

 

 

GENERAL TERMS AND CONDITIONS (Continued)

 

i = interest rate per month, which shall be the then

current maximum yield on five year U.S.

Government Treasury Notes divided by 12.

(Transporter will post current Treasury Note

rate on PASSKEY; and

 

N = the lesser of the term proposed by the Bidder,

expressed in number of months or 60 months.

 

(c) If the net revenue method is chosen, Transporter shall

determine the bid or bids having the highest net revenue

(NR) using the following formula:

 

NR= (Bid Rate) x (Bid Term) x (Bid TQ)

 

where

 

Bid Rate = the daily charge which the Bidder has

agreed to pay; for reservation rate

bids, the charge is calculated by

dividing the bid rate received from the

Bidder by 30.4 days per month (average

days per month in a 365-day year).

 

Bid Term = the term proposed by the Bidder, in

days.

 

Bid TQ = the TQ stated in the Bid, measured in

dekatherms.

 

(d) If a Release Request includes a Pre-arranged Bidder, then

the released transportation rights shall be awarded to the

Pre-arranged Bidder if:

 

i) the Pre-arranged Bidder's Bid equals or exceeds the

Bid with the highest economic value under the standard

submitted by the Releasing Shipper; or

 

ii) the Pre-arranged Bidder's Bid has a net present value

determined in accordance with this Section 17.7 that

is equal to or higher than the highest net present

value of the Bids submitted by all other Bidders; or

 

iii) the Pre-arranged Bidder agrees to match any Bid having

a greater economic value or a higher net present

value, as applicable, within the time period provided

by Section 17.6(c).