Petal Gas Storage Company
Original Volume No. 1
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Effective Date: 06/01/1998, Docket: RP97-280-001, Status: Effective
First Revised Sheet No. 112 First Revised Sheet No. 112 : Effective
Superseding: Original Sheet No. 112
GENERAL TERMS AND CONDITIONS
Where: i = The prime rate as published by the Wall
Street Journal on the first day of the
open season plus five percent (5%) (or
500 basis points). The sum of which is
then divided by twelve (12).
n = The term of the agreement, in months.
t = Month of contract start (example:
May = 5) minus the first month capacity
is available (Feb = 2), not to exceed 3
For example, a bid of $.08/dth (storage capacity charge) and $1.45/dth
(storage deliverability charge) would equal a weighted per unit charge
of $.225/dth/month, ([($.08 x 100,000) + ($1.45 x 10,000)]/100,000).
A bid equal to $.225/dth/month for five years (60 months) starting in
May, assuming capacity is available in February and using a 7% prime
rate, yields a present value per unit of $9.82.
(b) During the allocation process of an open season, should requests
for storage capacity exceed available capacity, capacity will
first be allocated to the highest present value bids received.
When remaining unallocated capacity is not sufficient to meet the
next highest present value bidder's capacity requirements, that
next highest bidder has the option of declining the remaining
capacity. Petal will then offer the remaining capacity to the
next highest bidder, until all the remaining capacity is
(c) Should the next highest present value bid in 4.2(b) above be
submitted by two or more Customers (e.g., tied bids) and there is
insufficient remaining capacity available to serve such Customers,
then capacity will be allocated to the Customer submitting the
earliest tied bid, until the remaining unallocated capacity is
insufficient to serve the next tied Customer's capacity
requirements. That next tied Customer has the option of declining
the remaining capacity. However, should the last of the tied
bidders decline the remaining capacity, then Petal will offer the
remaining capacity to the next highest bidder, until all the
remaining capacity is allocated.