Horizon Pipeline Company, L.L.C.

Original Volume No. 1

 Contents / Previous / Next / Main Tariff Index



Effective Date: 04/18/2002, Docket: CP00-129-001, Status: Effective

Original Sheet No. 181 Original Sheet No. 181 : Effective






(b) Horizon shall calculate a Bid Value and Unit Bid

Value for each Qualified Bid and Prearranged Release (if any), and shall

calculate the Winning Bid Value, as follows:


(1) For each month, the volume and reservation

charge per Dth stated in the Qualified Bid shall be multiplied together

to derive a gross monthly revenue figure. If the Qualified Bids contain

volumetric-based charges permitted by the Capacity Release Request, then

the gross monthly revenue figure shall be equal to any minimum amount

designated by the bidder to be billed as a reservation charge even if

there is no (or insufficient) flow.


(2) Each gross monthly revenue figure shall be

discounted to a net present value figure as of the first day of the

capacity release as sought in the Capacity Release Request, using the

current Federal Energy Regulatory Commission interest rate as defined in

18 C.F.R. Section 154.501(d)(1).


(3) The net present value figures for the proposed

release shall be summed, and such sum shall be the Bid Value.


(4) The Unit Bid Value is defined to equal the Bid

Value divided by the product of: (i) the highest volume of capacity (in

Dth) sought in the Qualified Bid for any day; multiplied by (ii) the

release term (in months) in the Capacity Release Request; and multiplied

further by (iii) thirty and four-tenths (30.4).


(c) The combination of Qualified Bid(s) with the

highest possible total Bid Value (Winning Bid Value) for the capacity in

the Capacity Release Request shall be the winning Qualified Bid(s). A

Qualified Bid may be allocated less than its Maximum Bid Volume, but in

no event shall the Qualified Bid be allocated less than its Minimum Bid

Volume. It is recognized that this procedure is intended to result in

the highest possible total Bid Value for the Releasing Shipper

consistent with the Qualified Bids, and it is possible that a Qualified

Bid with the highest individual Unit Bid Value may be rejected partially

or in its entirety.


(d) If there is more than one combination of Qualified

Bids with a total Bid Value equal to the Winning Bid Value this Section

15.10(d) provides the procedure for selecting just one such combination,

and thereby the winning Qualified Bid(s).