Carnegie Interstate Pipeline Company

Original Volume No. 1

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Effective Date: 01/01/1995, Docket: CP93-552-003, Status: Effective

Original Sheet No. 94 Original Sheet No. 94 : Effective

Superseding: Original Sheet No. 94

GENERAL TERMS AND CONDITIONS

(Continued)

 

11.2 (Continued)

 

(e) CIPCO shall review all bids from

potential customers received pursuant to section

11.2(c), which have not been rejected by CIPCO,

to determine which bid is the Best Bid(s). For

purposes of this Section 11.2, the Best Bid(s)

shall be the bid(s) that yield the highest Net

Present Value.

 

(f) Upon receipt from CIPCO of the Best

Bid(s), Customer shall have the right for a

thirty (30) day period in which to notify CIPCO

whether the Customer is willing to match the

Best Bid(s) for the capacity, in whole or in

part, made available by the termination of such

Customer's Service Agreement. Failure to notify

CIPCO within such thirty (30) day period

constitutes a non-revocable waiver of such

Customer's right to match the Best Bid(s). In

order to match the Best Bid(s), Customer must

agree to a rate up to the maximum rate and

contract term that provide CIPCO with at least

the same Net Present Value, for an equivalent

amount of capacity, as the valid Best Bid(s)

submitted by potential customer(s); provided

however, the maximum rate a Customer must match

is the maximum rate CIPCO can charge for

delivery to such Customer's Delivery Point(s)

specified in such Customer's Service Agreement,

and the maximum contract term such Customer must

match shall not exceed twenty (20) years.

 

(g) In the event CIPCO does not receive

any bids pursuant to Section 11.2(c) or CIPCO

rejects all bids for the reasons specified in

Section 11.2(d), CIPCO and Customer may mutually

agree upon the terms and conditions under which

such Customer shall be entitled to retain its

capacity and continue to receive service. In no

event shall CIPCO and Customer agree upon terms

which yield a Net Present Value less than any

bid received pursuant to Section 11.2(c) and

rejected by CIPCO. In the event CIPCO and

Customer have not reached agreement