Transwestern Pipeline Company

Second Revised Volume No. 1

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Effective Date: 09/06/2002, Docket: RP97-288-025, Status: Pending

Fourth Revised Sheet No. 84 Fourth Revised Sheet No. 84 : Pending

Superseding: Third Revised Sheet No. 84

 

24.4 Bid Solicitation

 

To the extent Transporter conducts a "bid solicitation" for posted capacity, all bids received

during the bid solicitation period will be treated as having been received at the same time

and will be awarded utilizing a Present Value method based on the bid criteria set forth

below.

 

(i) Bid Solicitation Notice

Transporter's bid solicitation shall specify:

(a) quantity (MMBtu/day)

(b) the available points, paths or segments

(c) the effective date capacity is available

(d) the deadline for submitting bids

(e) whether transporter is willing to consider offers at less than maximum tariff

rates for all or any portion of the capacity or term

(f) posted capacity will be awarded on a first-come, first-served basis to any

shipper willing to pay the applicable maximum tariff rate, and a shipper need

not offer to pay a different rate (including, without limitation, a negotiated

rate) that may be in excess of the maximum tariff rate to obtain such

capacity.

 

(ii) Minimum Bid Solicitation Timelines

The following are the minimum periods that the notice of a bid solicitation will be

posted:

 

(a) For a term of less than five (5) months, the bid solicitation period shall be

a minimum of one (1) business day.

(b) For a term of five (5) months to one (1) year, the bid solicitation period

shall be a minimum of three (3) business days.

(c) For a term of greater than one (1) year, the bid solicitation period shall be

a minimum of five (5) business days.

 

(iii) Bids

 

To be considered a valid bid, bids must be binding, must be received by the bid

solicitation deadline and must specify:

(a) the quantity desired (and whether the shipper is willing to accept a portion

of the quantity)

(b) primary receipt point(s)

(c) primary delivery point(s)

(d) the term

(e) reservation rate

 

(iv) Bid Evaluation

Valid bids will be evaluated by determining the highest present value using the

current Commission interest rate as defined in 18 C.F.R. 154.67(c)(2)(iii)(A).

 

If Transporter receives both maximum rate bids and negotiated rate bids, then any

portion of the negotiated rate bid exceeding the maximum tariff rate shall be

considered equal to the maximum tariff rate for the purpose of evaluation.

 

Transporter will award the capacity to the shipper(s) whose bid(s) represent the

highest net present value.

 

Bids with equal present value will be awarded on a pro rata basis, provided however,

that if one or more of the parties with equal bids is unwilling to accept a portion

of the quantity desired, then such bid(s) will be eliminated from the pro rata

calculation.

 

Transporter will notify all bidders of the acceptance or rejection of their

respective bids by the close of the business day following the bid solicitation

deadline.