Texas Eastern Transmission Corporation

Sixth Revised Volume No. 1

 Contents / Previous / Next / Main Tariff Index

 

 

Effective Date: 09/23/1999, Docket: RP99-480-002, Status: Effective

Second Sub Second Revised Sheet No. 456 Second Sub Second Revised Sheet No. 456 : Effective

Superseding: First Revised Sheet No. 456

 

GENERAL TERMS AND CONDITIONS

(Continued)

 

interruptible service agreement to renew or extend the term of such service agreement will

not be considered a new request for purposes of complying with Section 3.5 herein.

 

3.12 Allocation of Available Firm Capacity

 

(A) Firm capacity that is or becomes available on Pipeline's system from time to

time shall be allocated pursuant to the procedures set forth in this Section

3.12.

 

(1) Subject to all requirements for requests for firm service in this Section

3 of the General Terms and Conditions, firm capacity will be allocated to

that request(s) generating the highest net present value to Pipeline. Net

present value will be determined based on the discounted cash flow of

revenues to Pipeline produced, lost, or affected by the request(s) for

service. In determining the highest net present value, Pipeline will

consider objective criteria only. Such criteria may include, without

limitation, the maximum contract quantity requested, the term of the

service requested, the date on which the requested service would commence,

and such other objective criteria available based on the requests for

service received by Pipeline. The net present value evaluation shall

include only revenues generated by the reservation rate component except

that under a negotiated rate agreement with a minimum quantity, the net

present value evaluation shall also include the fixed cost component of

the usage revenue at the minimum quantity. In determining the highest net

present value in connection with a Customer paying a negotiated rate

higher than the maximum recourse rate, such negotiated rate Customer

paying a rate higher than the maximum recourse rate will be deemed to be

paying a rate equal to the maximum recourse rate. The net present value

discount factor used by Pipeline will be applied consistently to all

requests for capacity being evaluated at a particular point in time.

 

(2) For requests for firm service with a term of less than 90 days, Pipeline

shall have the right, but shall not be obligated, to post on its LINK®

system notice of request(s) for service received and prescribe a period of

time ("open season") for receiving additional requests to be evaluated

contemporaneously; provided, however, if capacity is available to satisfy

any such request, Pipeline shall conduct an open season for all requests

for firm service with a term of 90 days or more. To the maximum extent

possible, Pipeline will attempt to structure any such posting so as not to