Centerpoint Energy - Mississippi River
Third Revised Volume No. 1
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Effective Date: 12/01/2002, Docket: RP03- 51-000, Status: Effective
First Revised Sheet No. 99C First Revised Sheet No. 99C : Effective
Superseding: Fourth Substitute Original Sheet No. 99C
GENERAL TERMS AND CONDITIONS
5. PROCEDURES FOR REQUESTING SERVICE (Continued)
(e) Award of Capacity: MRT shall comply with Commission
requirements regarding the award of available firm capacity on its
system. MRT shall not be obligated to accept any rate for capacity
which is less than MRT's maximum authorized rate. Before capacity is
posted, MRT may establish a reserve rate less than its maximum rate.
Notice of the establishment of a reserve rate will be included in MRT's
Open Season notice, provided that such reserve rate shall not be
disclosed at the time of posting but shall be recorded and maintained by
MRT for a period of three (3) years for validation purposes. Upon
reasonable notice to MRT, but not before the earlier of (1) 10 days
after the close of the Open Season process, or (2) the posting of a
successful bid(s), a Customer or prospective Customer submitting a bid
that is not withdrawn prior to the end of the Open Season may review the
record of the reserve rate at MRT's offices during normal business
In the event firm capacity on MRT is available for subscription and MRT
awards such capacity, such capacity shall be awarded to Customers that
meet MRT's creditworthiness standards (as set forth in Section 26 of the
General Terms and Conditions) based upon MRT's analysis of the
incremental revenues expected to be produced, lost, or affected if the
request for service is accepted.
The determination of incremental revenues to MRT shall be based upon the
following Bid Value and other objective and nondiscriminatory factors
determined by MRT to be relevant to the granting of the request:
(1) For each month of the term of the bid, the quantity and rate
per Dth stated in the qualifying bid shall be multiplied
together to derive a gross monthly revenue figure.
(2) Each gross monthly revenue figure shall be divided by the
maximum daily quantity of any month during the contract term
and the number of days in the month to derive a bid rate.
(3) Each bid rate shall be discounted to a net present value
figure using the current Federal Energy Regulatory
Commission interest rate as defined in 18 C.F.R. Section
(4) The net present value figures shall be summed, and the sum
shall be the bid value.
(5) The qualifying bid(s) , which produces the highest bid value
to MRT, will be deemed to be the best bid(s).