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Second Revised Sheet No. 140A Second Revised Sheet No. 140A : Superseded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)
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
Bid TQ = the TQ stated in the Bid, measured in
(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).