Texas Gas Transmission, LLC
Third Revised Volume No. 1
Contents / Previous / Next / Main Tariff Index
Effective Date: 03/08/2010, Docket: RP10-366-000, Status: Effective
Original Sheet No. 2302 Original Sheet No. 2302
GENERAL TERMS AND CONDITIONS
(e) At the end of the bidding period, Texas Gas will determine the best bid or
combination of bids ("Best Bid(s)") based upon the highest NPV. The NPV
will be determined for each bid, and bids shall be ranked in descending
order based on NPV. All capacity offered in the Auction Notice may be
awarded, based on the NPV ranking of the bids, subject to the Original
Customer's right to match in accordance with Section 11.1(f).
(i) If two or more bids yield the same NPV and the total capacity of
the bids is equal to or less than the total of the capacity
auctioned, Texas Gas will award to each bidder its total bid.
(ii) If two or more bids yield the same NPV and the total capacity of
the bids is greater than the total auctioned capacity, the bids
will be considered "Competing Bids" and the Best Bid(s) will be the
bid(s) that yield the highest NPV over the shortest period of time.
(iii) After this process, if two or more Competing Bids yield the same
NPV over the same period of time, then the Best Bid(s) will be the
bid(s) submitted first in time.
(f) For capacity auctioned following a Request for Service, the Best Bid(s)
will be presented to the Original Customer submitting the original Request
for Service. The Original Customer will have the opportunity to match
either (i) the Best Bid or combination of Best Bids, including volume(s),
point(s), and term(s), or (ii) the NPV of the Best Bid or combination of
Best Bids before 4:00 p.m., Central Time, of the second Business Day
following the close of the bid period.
(i) If the Original Customer timely matches the Best Bid or combination
of Best Bids, or if no Best Bid is submitted, Texas Gas will award
the applicable firm transportation capacity to the Original
Customer and shall enter into a service agreement with such
Customer. If there is more than one Best Bid, the Original
Customer must timely match the aggregate NPV of all Best Bids.
If the Original Customer elects to match the NPV of the Best
Bid(s), the Original Customer's bid will be adjusted in the
following manner in order to match such NPV. The applicable bid
rate will be increased to the amount needed to achieve the same
NPV(s), keeping the same term as the Original Customer's initial
term, provided that the bid rate will not be increased to a level
greater than the applicable maximum rate. If necessary, once the
rate has been increased to the applicable maximum rate, the term
will be extended, as needed, to the end of the month during which
the same NPV of the Best Bid(s) is achieved.
If the Original Customer elects to match the NPV of the Best Bid(s)
and the Best Bid(s) include Point(s) that vary from the Requested
points, the Original Customer may utilize the Point(s) set forth in
the Best Bid(s) provided that such utilization of the Point(s)
included in the Best Bid(s) would not result in a shorter path or
lower rate than was included in the Original Customer's bid.
(ii) If the Original Customer does not match the Best Bid(s), Texas Gas
shall award the applicable firm transportation capacity to the
Customer(s) that submitted the Best Bid(s) in accordance with
Section 11.1(e). Following the award, Texas Gas will enter into a
service agreement with the party or parties receiving the awarded
capacity. Any remaining capacity will continue to be posted as
available firm capacity on Texas Gas' Internet Website.