Granite State Gas Transmission, Inc.
Third Revised Volume No. 1
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Effective Date: 08/19/2005, Docket: RP05-447-000, Status: Effective
Fourth Revised Sheet No. 305 Fourth Revised Sheet No. 305 : Effective
Superseding: Third Revised Sheet No. 305
GENERAL TERMS AND CONDITIONS
29. CAPACITY RELEASE (continued)
29.9 Rewarding of Released Capacity
(iii) If more than one valid bid is received and none offers the maximum applicable rate for the maximum
term, Transporter will award the capacity to the bid offering the maximum revenue over the minimum term
specified by the Releasing Customer. Such maximum revenue shall be computed from the monthly demand
charge or reservation revenues to be received over the minimum term of the release contract, except that
under a Negotiated Rate agreement with a minimum quantity, the maximum revenue evaluation shall also
include the fixed cost component of the usage revenue at the minimum quantity.
(iv) If two or more equal bids are received, Transporter will award the capacity on the basis of the
tie-breaker criteria provided by the Releasing Customer. If no tiebreaker criteria are provided by the
Releasing Customer then capacity will be awarded on the basis of a lottery to be held within two (2)
business days of the close of the bidding period. The lottery will be conducted by Transporter on a
nondiscriminatory basis and on a one (1) business day's notice to the affected parties who will have the
right to attend. Capacity shall be awarded on the basis of a draw, on an all or nothing basis.
For less than maximum rate transactions only, converting daily rate to monthly rate is accomplished
by multiplying the daily rate times number of days in rate period, dividing the result by number of months
in rate period and taking the remainder out to 5 decimal places and rounding up or down to the
Transporter's specified decimal place. Converting a monthly rate to a daily rate is accomplished by
multiplying the monthly rate by number of months in rate period, dividing the result by number of days in
rate period and taking the remainder out to 5 decimal places and rounding up or down to the transporter's
specified decimal place.
Transporter should not award capacity release offers to the Shipper until and unless the Shipper
meets Transporter's creditworthiness requirements applicable to all services that it receives from
Transporter, including the service represented by the capacity release.