Enbridge Pipelines (AlaTenn) L. L. C.

FOURTH REVISED VOLUME NO. 1

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Effective Date: 10/11/2002, Docket: RP03- 40-000, Status: Effective

Original Sheet No. 140 Original Sheet No. 140 : Effective

 

GENERAL TERMS AND CONDITIONS (continued)

 

(c) Present Value Method: If the Present Value ("PV") Method is

specified in the Release Request or in the event of a firm

contract nearing expiration, Transporter shall determine the

bid or bids having the highest PV based on the following

formula:

 

N

PV = (Bid Rate) x (Bid MDQ) x 1-(1/((1+i) ))

--------------

 

i

where

 

Bid Rate = the reservation charge which the Bidder

has agreed to pay; for volumetric bids the

rate is calculated by multiplying the bid

rate by 30.4167.

 

Bid MDQ = the MDQ stated in the Bid.

 

i = Interest rate per month, which shall be

the interest rate as calculated under 18

C.F. R. § 154.67 (c)(2)(iii); and

 

N = the lesser of (i) the term proposed by the

Bidder or (ii) 120 months.

 

(d) If a Release Request includes a Prearranged Replacement

Shipper, then the released transportation rights shall be

awarded to the Prearranged Replacement Shipper (a) if its

bid either is equal to or is higher than the bid with the

highest value under the bid evaluation methodology specified

by the Releasing Shipper as provided herein or, if no such

standard is specified, is equal to or is higher than the bid

with the highest NR of the bids submitted by all other

Bidders in accordance with the NR method herein, or (b) if

the Prearranged Replacement Shipper exercises its right of

first refusal and agrees to match any bid having a higher

value, as applicable, within the time period provided under

Section 3.14.