Mississippi River Transmission Corp.

Third Revised Volume No. 1

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Effective Date: 03/17/1999, Docket: RP98-404-004, Status: Effective

3rd Sub Original Sheet No. 99E 3rd Sub Original Sheet No. 99E : Superseded

 

GENERAL TERMS AND CONDITIONS

(Continued)

 

5. PROCEDURES FOR REQUESTING SERVICE (Continued)

 

(h) Tiebreaker: If more than one bid has the same Bid

Value and at least one of the Bidders with the highest Bid Value

is in MRT's queue, until November 1, 1999, MRT will use the order

of the Shippers and prospective Shippers in its existing queue as

a tie-breaker and award available firm capacity to the tying

Bidder(s) with the highest position in the queue. The use of

MRT's queue for a tiebreaker will not apply to southbound capacity

and will only apply to permanent firm capacity. After November 1,

1999, MRT will terminate this use of its existing queue as a

tiebreaker. However, for the Main Line No.1 customers as provided

in Section 5.9(l), the queue will remain in place for the

purpose of allocating firm capacity that becomes available on the

Main Line as a result of terminating agreements or turnback of

capacity. In the event MRT's queue is not used as a tiebreaker,

capacity will be awarded pro rata among the tying bidders. A bid

to pay the maximum rate as it may vary from time to time for a

given term will be deemed superior to a bid to pay a specified

dollar rate which is equal to the maximum currently effective rate.

 

(i) Change of Primary Points: In determining the Bid

Value of a request for a change of a primary receipt or delivery

point, the actual gain or loss in revenue to MRT resulting from

such change shall be considered. Requests to extend the term,

increase the contract demand, or increase the rates provided

under an existing service agreement with MRT shall be considered

in determining the Bid Value as a request for additional service.

 

(j) Pre-Arranged Deals: MRT may enter into a

pre-arranged service agreement with any party provided that MRT

will post the terms of the pre-arranged transaction and other

parties will have an opportunity to acquire the capacity by

submitting a bid for the pre-arranged capacity which, if awarded,

would have a higher incremental revenue to MRT. Such incremental

revenue shall be calculated in accordance with the criteria set

forth above in Section 5.9(e). For purposes of its

evaluation, MRT may consider the aggregate of two or more

requests for service and award the available capacaity to the

combination of requests that results in the highest incremental

revenues to MRT. If a Customer submits a bid with a higher

incremental revenue to MRT, the pre-arranged Customer will have

a one-time right to match the higher bid in order to obtain the

capacity. If the pre-arranged Customer elects not to match a

higher competing bid, the capacity will be awarded to the

highest bidder whose request, if accepted, would have a higher

incremental revenue to MRT.