Midcoast Interstate Transmission, Inc.
Second Revised Volume No. 1
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Effective Date: 10/01/1997, Docket: GT97- 71-000, Status: Effective
Second Revised Sheet No. 97 Second Revised Sheet No. 97 : Effective
Superseding: FIRST REVISED SHEET NO. 97
GENERAL TERMS AND CONDITIONS (continued)
(c) Present Value Method: If the Present Value ("PV")
Method is specified in the Release Request or in the
event of a firm contract nearing expiration,
Transporter shall determine the bid or bids having the
highest PV based on the following formula:
PV = (Bid Rate) x (Bid MDQ) x 1-(1/((1+i) ))
Bid Rate = the reservation charge which the Bidder
has agreed to pay; for volumetric bids
the rate is calculated by multiplying
the bid rate by 30.4167.
Bid MDQ = the MDQ stated in the Bid.
i = Interest rate per month, which shall be
the interest rate as calculated under
18 C.F. R. 154.67 (c)(2)(iii); and
N = the lesser of (i) the term proposed by
the Bidder or (ii) 120 months.
(d) If a Release Request includes a Prearranged Replacement
Shipper, then the released transportation rights shall
be awarded to the Prearranged Replacement Shipper (a)
if its bid either is equal to or is higher than the bid
with the highest value under the bid evaluation
methodology specified by the Releasing Shipper as
provided herein or, if no such standard is specified,
is equal to or is higher than the bid with the highest
NR of the bids submitted by all other Bidders in
accordance with the NR method herein, or (b) if the
Prearranged Replacement Shipper exercises its right of
first refusal and agrees to match any bid having a
higher value, as applicable, within the time period
provided under Section 3.14.