Caledonia Gas And Storage

First Revised Volume No. 1

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Effective Date: 09/30/2010, Docket: RP10-1032-000, Status: Effective

Original Sheet No. 56 Original Sheet No. 56


Caledonia reserves the right to give first

priority to bids where: (i) the reservation charges meet or exceed a

threshold value; and (ii) the length of term meets or exceeds a

threshold value. Caledonia may also take into consideration the

relative creditworthiness of each bidder when determining the bid with

the highest economic value. Caledonia may change the criteria to be

used in evaluating bids, but the revised criteria may be applied to an

open season only if notice of such change is posted at least three (3)

Business Days prior to the commencement of the open season. Caledonia

will not change the criteria for an on-going open season.

(c) Evaluation and Allocation. During the allocation process conducted

as part of an open season, should requests for Firm Storage Service

exceed available capacity, capacity will first be allocated to the

Qualified Customer who submitted the bid which is anticipated by

Caledonia to generate the highest acceptable economic value for

Caledonia. After the initial allocation of capacity to the Qualified

Customer with the best bid, Caledonia will continue allocating the

remaining available capacity based on the ranking of bids having the

highest acceptable economic value until all of the remaining capacity

that was bid at, or above, the internal threshold levels has been

allocated. When remaining unallocated capacity is not sufficient to

meet the next highest economic value bidder’s capacity requirements for

FSS, such next highest bidder shall have the option of declining the

remaining capacity. Caledonia will then offer the remaining capacity to

the next highest bidder, until all the remaining capacity is allocated

or until such time that the next highest bidder’s terms did not meet

the minimum requirements set forth in the Open Season.

(d) Tie-Bids. Should the next highest bid in Section 3.2(c) above be

submitted by two or more Qualified Customers (e.g., tied bids) and the

remaining uncommitted capacity available is less than the capacity

required to serve such parties, then the procedures in this subsection

will apply. Caledonia will first notify the bidders submitting the

tying bids that the evaluation resulted in a tie and shall provide each

such bidder an opportunity to improve its bid through an entirely new

bid submitted via the Internet Web Site and by e-mail within twenty-four

(24) hours of such notification. If a tie still exists after this first

step, Caledonia will next allocate the available capacity pro rata to

each tying bidder which has indicated its willingness to prorate.

(e) Execution of Agreements. A Qualified Customer’s bid which is

accepted by Caledonia shall be deemed a binding transaction under the

Qualified Customer’s FSS Service