Pacific Gas Transmission Company
First Revised Volume No. 1-A
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Effective Date: 07/06/2002, Docket: RP02-362-000, Status: Effective
Second Revised Sheet No. 68A Second Revised Sheet No. 68A : Effective
Superseding: First Revised Sheet No. 68A
TRANSPORTATION GENERAL TERMS AND CONDITIONS
18. OPERATING PROVISIONS (Continued)
18.1 Firm Service (Continued)
(d) After the close of the Bidding Period, PG&E GT-NW may
tender a Service Agreement for execution to the
requestor(s) submitting the bid(s) having the greatest
economic value for the capacity available, subject to the
provisions of Paragraph 18.1(f).
(e) Valuation of Bids
Unless otherwise specified in its open season posting, the bid(s)
with the greatest economic value will be the bid(s) with the
highest net present value ("NPV") based on the reservation charge
and any proposed usage charge revenues guaranteed by a minimum
volume commitment or otherwise that requestor(s) would pay at the
rates the requestor(s) has bid, over the term of service specified
in the request. If the economic values of separate bids are
equal, then service shall be offered to such requestors on a
pro-rata basis. The NPV is the discounted cash flow of the bid
according to the following formula, net of revenues lost or
affected by the requests for service:
(1 + i) -1
Present Value per = P * R * _________
i (1 + i)
where: P = percent of the rate or charge that the
Shipper is willing to pay.
R = Rate or charge calculated as: The applicable
maximum authorized reservation charge(s) per
Dth in effect at the time of the bid for
i = FERC's annual interest rate divided by 12.
n = number of periods for which the bidder
wishes to contract.
The NPV formula will be affected by the term and rate requested.
In the event PG&E GT-NW intends to entertain bids for service
under index-based or other Negotiated Rate Formulae, the future
value of which cannot be determined at the time of the bidding,
PG&E GT-NW shall estimate the future revenues to be received
under the Negotiated Rate Formula using currently available data.