K N Interstate Gas Transmission Co.
Third Revised Volume No. 1-B
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Effective Date: 08/01/1996, Docket: RP96-296-000, Status: Effective
Original Sheet No. 49 Original Sheet No. 49 : Superseded
GENERAL TERMS AND CONDITIONS FOR SERVICES - continued
NPV = net present value of the bid
R = Reservation charge (potential replacement
Shipper's bid reservation charge) state on a
Bid MDTQ = Amount of capacity bid on in MMBtu/d
I = Discount (interest rate stated on a daily
n = Number of days from begin release date to
the end of the period.
If no interest rate is specified by the releasing
Shipper, the latest Wall Street Journal prime rate
will be used.
The economic value of a bid shall be defined as the
total net present value of the reservation charge bid,
not to exceed a term of twenty(20) years. Transporter
will give any replacement Shipper found by the
releasing Shipper (if any) an opportunity to match any
better offer by the close of business on the next
business day following the close of the bid period
(match day). All offers must be received by 5:00
PM CT on the last day of the bid period and on match
day. If the replacement Shipper matches the better
offer, Transporter will contract with the replacement
Shipper found by the releasing customer. If the
better offer is not matched, 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
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