Texas Eastern Transmission Corporation

Sixth Revised Volume No. 1

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Effective Date: 03/27/2000, Docket: RP00-535-000, Status: Suspended

Second Revised Sheet No. 468 Second Revised Sheet No. 468 : Suspended

Superseding: First Revised Sheet No. 468

 

GENERAL TERMS AND CONDITIONS

(Continued)

 

(F) "Best Bid":

 

Bids in excess of the maximum rate shown on the applicable rate sheet will be

accepted from potential Replacement or Prearranged Customers for a release with

a term of less than one (1) year for service rendered through September 30,

2002, or any later date established by the Commission, and will be utilized in

the determination of the "best bid" pursuant to this section.

 

The "best bid" shall be determined in accordance with the bid evaluation method

specified by the Customer pursuant to Section 3.14(D)(1)(i). The "best bid" may

be determined as that bid which generates (1) the highest rate, (2) the maximum

net revenue, or (3) the highest present value. In the event the Customer

elects not to submit a bid evaluation method, the "best bid" shall be the bid

which generates the maximum net revenue. However, Pipeline shall reject any bid

which does not match the minimum term or any other minimum specifications set

forth in Customer's Notice. If pursuant to Section 3.14(D)(1)(h) Customer

states the minimum Reservation Charge on a percentage basis of the maximum rate,

bids shall be received on a percentage basis of the maximum rate. For all

releases, the usage portion of the rates is determined by the Pipeline and the

Replacement or Prearranged Customer and as such will not be taken into

consideration when determining the "best bid". In the event both a contingent

bid and a non-contingent bid meet the minimum conditions stated in Section

3.14(D)(1)(h) and generate the "best bid", Pipeline shall reject the contingent

bid.

 

(G) Obligations of All Parties:

 

(1) Obligation of Pipeline

 

Pipeline will be required pursuant to Section 2 of the General Terms and

Conditions to provide the LINK® System for access by Customers,

Replacement Customers or Prearranged Customers participating in this

Section 3.14 and to otherwise comply with the provisions of this section.

If the Replacement or Prearranged Customer satisfies the Pipeline's

applicable tariff provisions governing Customer eligibility and its bid is

accepted by Pipeline, Pipeline shall notify a Customer in the event such

Replacement or Prearranged Customer fails to pay part or all of the amount

of any bill for service provided when such amount is due in accordance

with Section 10 of the General Terms and Conditions. Pipeline will

finalize an appropriate Addendum to the Capacity Release Umbrella

Agreement, a Form of Service Agreement of which is contained in the

General Terms and Conditions, with the Replacement or Prearranged

Customer. Pipeline will notify the Customer with recall rights of the

name of new Replacement Customers who subsequently obtain such capacity

after the Addendum to the Capacity Release Umbrella Agreement is executed.

In those instances when the Commission determines that Pipeline charged

more than the just and reasonable rate and requires