Texas Eastern Transmission Corporation

Sixth Revised Volume No. 1

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

Third Revised Sheet No. 462 Third Revised Sheet No. 462 : Effective

Superseding: Second Revised Sheet No. 462

 

GENERAL TERMS AND CONDITIONS

(Continued)

 

will refund, including applicable carrying charges calculated in accordance with

Section 154.501(d) of the Commission's Regulations the Replacement Customer's

bona fide prepayment. The bona fide prepayment will not be refunded if the bid

is withdrawn by the Replacement Customer. Pipeline may reject all bids which

would require Pipeline to discount below a rate and for discount period

agreeable to Pipeline.

 

(E) Pipeline shall review all bids from Replacement Customers received pursuant to

Section 3.13(C), which have not been rejected by Pipeline, to determine which

bid is the "best bid(s)". For purposes of this Section 3.13, the "best bid(s)"

shall be the bids which yields to Pipeline the highest net present value. Net

present value shall be calculated on the basis of the present value of the

Reservation Charge per unit to Pipeline 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 making the determination of net present value Pipeline shall apply the rate,

as of the date of the review, stated in accordance with the most recently

auctioned 15-year United States Treasury Bond, to all bids.

 

(F) Upon receipt from Pipeline of the "best bid(s)", Customer shall have the right

for a thirty (30) day period in which to notify Pipeline 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 long-term service agreement. Failure to

notify Pipeline within said thirty (30) day period constitutes a non-revocable

waiver of 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 Pipeline with at least the same net present value, for an

equivalent amount of capacity, as the valid "best bid(s)" submitted by the

Replacement Customer(s); provided, however, the maximum rate a Customer must

match is the maximum rate the Pipeline can charge for delivery to the Customer's

Point of Delivery under the Agreement which is subject to the Customer's right

to match the "best bid", and the maximum contract term a Customer must match

shall not exceed five (5) years.

 

(G) In the event Pipeline does not receive any bids pursuant to Section 3.13(C) or

Pipeline rejects all bids received due to the fact that such bids were premised

on rate discount levels or rate discount periods unacceptable to Pipeline,

Pipeline and Customer may mutually agree upon the terms and conditions under

which Customer shall be entitled to retain its capacity and continue to receive

service. In no event shall Pipeline and Customer agree upon terms which yields

to Pipeline a net present value less than any bid received pursuant to Section

3.13(C) and rejected by Pipeline. In the event Pipeline and Customer have not

reached agreement on the terms and conditions under which service will be

extended before the termination date, at Customer's