CNG Transmission Corporation

Second Revised Volume No. 1

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Effective Date: 06/01/1997, Docket: RP97-181-002, Status: Effective

First Revised Sheet No. 371 First Revised Sheet No. 371 : Superseded

Superseding: Substitute Original Sheet No. 371

 

GENERAL TERMS AND CONDITIONS

Capacity Release

23.3 Evaluating Bids.

 

A. Pipeline shall determine the "best bid," in accordance

with the nondiscriminatory criteria posted by

Releasing Customer in the Release Notice; provided,

however, that Pipeline shall reject any bid which does

not match any single minimum specification of the

posted notice. If there are multiple bids meeting

minimum conditions, Pipeline will award the bids, best

bid first, until all offered capacity is awarded.

B. Evaluation Criteria. In its posted notice, Releasing

Customer must specify one of the following bid

evaluation mechanisms:

 

1. NPV Method. The net present value of the bid

quantity, multiplied by the bid price, discounted

over the bid term by the effective Commission

interest rate.

2. Net Revenue Method. The value of the bid

quantity, multiplied by the bid price,

3. An alternate objective method chosen by Releasing

Customer, and specified in the posted notice.

Such method must be objectively stated,

applicable to all bidders, and not unduly

discriminatory. Such method must be stated with

sufficient specificity to enable Pipeline to

reasonably determine and apply the method or

formula to be used, in order to rank all bids

received, utilizing the elements contained in the

Bid Agreement. Such alternate method shall not

be subject to the timeline specified in Section

23.2.B., above; Pipeline and Releasing Customer

shall determine a mutually-agreeable timeline,

appropriate under the circumstances, prior to

posting the notice of such offer. The applicable

timeline must be included in the posted notice.

4. If Releasing Customer does not designate an

evaluation standard in the posted notice of the

release, the best bid shall be determined as

follows: the bidder submitting the highest bid

rate, within the applicable minimum and maximum

rates, shall win.

C. Tie-Breaking Method. If more than one bidder wins

under the applicable evaluation criteria, the capacity