Kinder Morgan Interstate Gas Transmission LLC
Fourth Revised Volume No. 1-B
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Effective Date: 12/28/1999, Docket: GT00- 19-000, Status: Effective
Original Sheet No. 52E Original Sheet No. 52E : Effective
GENERAL TERMS AND CONDITIONS - continued
(b) Transporter 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 23.10(d) provides the procedure for selecting just one such
combination, and thereby the winning Qualified Bid(s).