Kentucky West Virginia Gas Company

Third Revised Volume No. 1

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Effective Date: 04/01/1998, Docket: RP98-162-000, Status: Effective

Second Revised Sheet No. 141 Second Revised Sheet No. 141 : Superseded

Superseding: First Revised Sheet No. 141



24.4 Bidding


Potential Customers interested in acquiring the service must

submit offers to contract for all or part of the available

capacity by 5:00 p.m. thirty (30) business days after the

capacity is posted to Pipeline's electronic communications

system and EDI. To be valid, a bid must provide all information

and data required by Section 11.2 and 11.3 of Pipeline's General

Terms and Conditions. In addition, the potential Customer must

provide a refundable prepayment equal to one month's demand

charge based on the quantity desired and the requested price.

All bids, including the relevant terms and conditions, will be

posted on the electronic communications system and EDI for

review by any party, and the existing Customer will be notified

by the Pipeline of the relevant terms of all competing bids.


24.5 Best Bid


At the close of the bidding period, Pipeline will evaluate all

bids received for completeness, rate acceptability and

creditworthiness, and will choose the offer it will accept if

the existing Customer chooses not to match the offer ("the best

bid"). For purposes of this section, the best bid shall be the

bid which offers the maximum applicable rate for the full term

of the bid which shall not exceed five (5)years. If no

Bidder offers the maximum rate for the full term of the bid,

Pipeline may select the best bid based on the maximum revenue

over the minimum term of the bid. However, Pipeline shall not

be required to accept any offer at less than the maximum rate.


24.6 Matching Offer by Existing Customer


Pipeline will notify the existing Customer of the relevant terms

of the best bid. The Customer will then have twenty (20)

business days to notify Pipeline that it elects to continue

service under the rates and terms applicable to the best bid,

and agrees to execute a new service agreement reflecting those

rates and terms. If the existing Customer agrees to match the

best bid, Pipeline will refund the prepayments made by all other

Bidders. Failure to notify within the 20 day period constitutes

a non-revocable waiver of Customers' right to match the best

bid, and will result in the abandonment of service to that

Customer. If the existing Customer chooses not to match the

best bid, Pipeline will offer the service to the selected

Bidder. If, for whatever reason, service is not actually

provided pursuant to the bids, Pipeline will report the

available capacity on its electronic, communications system and

EDI and the bidding process will repeat.