K N Interstate Gas Transmission Co.
First Revised Volume No. 1-D
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Effective Date: 12/02/1994, Docket: RP95- 35-000, Status: Effective
Original Sheet No. 42 Original Sheet No. 42 : Superseded
GENERAL TERMS AND CONDITIONS FOR SERVICES - continued
Transporter will contract with the person who made the better
offer. In all situations, including those where Shipper specified
criteria are used, Transporter will evaluate and rank the bids.
Capacity will be awarded once the winning bid is determined.
Capacity not taken by the winning bidder will be offered to the
next highest bidder.
* According to the following formula:
t = 0
NPV = net present value of the bid
R = Reservation charge (potential replacement Shipper's bid
reservation charge) stated on a daily basis
Bid MDTQ = Amount of capacity bid on in MMBtu/d
i = Discount (interest) rate stated on a daily basis
n = Number of days from begin release date to the end of the
period covered by the bid.
If no interest rate is specified by the releasing Shipper, the
latest Wall Street Journal prime rate will be used.
23.6 ABILITY TO WITHDRAW CAPACITY POSTING OR CAPACITY BID AND ABILITY
TO MAKE CONDITIONED BID.
a. ABILITY TO WITHDRAW RELEASED CAPACITY POSTING. Releasing
Shipper may withdraw the capacity release any time before
the end of the bid period.