Midwestern Gas Transmission Company
Third Revised Volume No. 1
Contents / Previous / Next / Main Tariff Index
Effective Date: 02/01/2009, Docket: RP09-280-000, Status: Effective
Third Revised Sheet No. 258 Third Revised Sheet No. 258
Superseding: Second Revised Sheet No. 258
GENERAL TERMS AND CONDITIONS
21. CAPACITY RELEASE (Continued)
21.10 Bid and Award Process
(a) Bid Process
Bidders may submit Bids during the Bidding Period applicable to a capacity
release offer. All Bids must be submitted via the System and must be
expressed in absolute dollars and cents or percents of applicable maximum
tariff rate, whichever is stated in the capacity release offer. All
contingencies must be identified on the Bid or capacity release offer.
In submitting a Bid, Bidders recognize that such Bids will be accessible
by other Bidders through the System. Upon submission, all Bids will be
assigned a Bid number and the identity of the Bidder will not be revealed
during the Bidding Period.
For releases with a term of more than one year, or for releases with a
term of one year or less that will take effect more than one year from the
date Releasing Shipper notifies the Company of the release, bids shall not
exceed the applicable Maximum Rate for the applicable firm transportation
service being released as set forth on the currently effective Summary of
Rates and Charges. The Maximum Rate shall not apply to Capacity Releases
for a period of one year or less if the release is to take effect on or
before one year from the date on which the Releasing Shipper notifies the
Company of the release. For all releases, bids shall not be less than the
applicable minimum rate set forth in the capacity release offer.
The quantity specified in a Bid may not exceed the maximum quantity or be
less than the minimum quantity specified in a capacity release offer.
The release term specified in a Bid must meet the term specifications in
the capacity release offer.
Bidding will be an iterative process such that a Bidder may submit any
number of Bids during the Bidding Period; provided that each new
submission of a Bid requires the withdrawal of any previous Bid submitted
by Bidder such that a Bidder cannot have more than one Bid in contention
for the same capacity at one time. If a Bidder withdraws its Bid and
resubmits a new Bid, such new Bid must be at a higher rate. A Bidder
retains the right to withdraw its Bid by resubmitting a new Bid, until the
close of the Bidding Period, at which time, such Bid shall become binding.
Bids must contain information consistent with the currently effective FERC
adopted NAESB standards.
(b) Awarding of Capacity to a Successful Bidder
The determination of the successful Bidder shall be effected in accordance
with the following procedures:
(1) Bid Evaluation Methodologies
The Releasing Shipper shall specify in the capacity release
offer one of the following Bid evaluation methodologies:
(i) highest rate, (ii) net revenue, or (iii) present value. A
capacity release offer submitted specifying one of these methods
shall be accorded the timeline treatment described in
Subsection 21.11. However, the Releasing Shipper may choose
another Bid evaluation method and this request also shall be
accorded the timeline treatment described in Subsection 21.11 of
these General Terms and Conditions. Company shall apply the