TransColorado Gas Transmission Company
Original Volume No. 1
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Effective Date: 12/05/1996, Docket: CP90-1777-009, Status: Effective
Original Sheet No. 50 Original Sheet No. 50 : Superseded
GENERAL TERMS AND CONDITIONS
(b) Permanently released capacity shall be awarded to the
replacement Shipper that offers a rate and term yielding a
present value equal to or greater than the present value of
the releasing Shipper's transportation service agreement.
The present value shall be calculated using the formula
stated below. Acceptance shall be conditioned upon the
replacement Shipper satisfying TransColorado's
creditworthiness standards and eligibility requirements.
(c) Present value formula:
(Monthly Reservation Charge ) x [1-(1+i)-n ]=Present Value
( Per Unit ) [ i ] per Unit
Where: i = interest rate per month, i.e., overall
rate of return divided by 12 months.
n = term of the agreement, in months.
(d) If two or more bids are of equal value, the capacity shall
be awarded according to the criteria specified by the
releasing Shipper. If no method for awarding tied bids is
specified, the capacity shall be awarded pro rata based on
the requested CD.
(e) If no bid is submitted meeting all of the rates, terms and
conditions in the releasing Shipper's release notice, then
no award of capacity shall be made.
(f) For a pre-arranged release, if no better offer is received
during a bid period or the pre-arranged offer is for the
applicable maximum reservation charge and full term of the
release, then the pre-arranged bidding Shipper shall become
the replacement Shipper. If the pre-arranged release is for
less than the applicable maximum reservation charge and a
better offer is received during the bid period, the pre-
arranged bidding Shipper shall have one day for a short-term
release and five days for a long-term release to match the
better offer. If the prearranged bidding Shipper fails to
match the better offer, then the bidding Shipper who present
ed the better offer shall become the replacement Shipper.
(g) To document the award of the release of capacity to the
successful bidding Shipper, the replacement Shipper,
TransColorado will place a service agreement