Trunkline Gas Company
First Revised Volume No. 1
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Effective Date: 10/18/1999, Docket: RP99-483-000, Status: Effective
Fifth Revised Sheet No. 198 Fifth Revised Sheet No. 198 : Effective
Superseding: Fourth Revised Sheet No. 198
GENERAL TERMS AND CONDITIONS
10.CONTRACTING FOR UNSUBSCRIBED CAPACITY
This Section 10 governs the order in which requests for Transportation
service shall be accommodated when unsubscribed firm capacity, other
than released capacity, becomes available. It does not govern
scheduling, which is governed by Section 3 herein. Requests for firm
capacity shall be accommodated in the following manner and subject to
the following conditions and limitations:
10.1 In order to be eligible for firm capacity, a party requesting
service (requestor) must submit a valid request in accordance with
the provisions of Section 2 herein.
10.2 Trunkline will post on the Messengerþ system and the Web Site
available capacity. A requestor that submits a valid request may
submit in writing a bid for the available capacity at any time.
In the event of multiple bids, Trunkline will evaluate the bids
and determine the bid having the greatest economic value as
determined in Section 10.3.
10.3 Trunkline shall tender a Service Agreement for execution to the
requestor submitting the bid having the greatest economic value
for the capacity available, subject to the provisions of Section
10.5. The criteria for determining which requestor has submitted
the bid with the greatest economic value shall be the Net Present
Value (NPV) of the reservation charge that requestor would pay at
the rates requestor has bid, which shall not be less than the
Minimum Rate nor greater than the Maximum Rate, as stated on the
currently effective Tariff Sheet governing such service, over the
term of service specified in the request, utilizing a ten percent
(10%) annual discount factor. Trunkline shall calculate the NPV
by using the eighty (80) percent minimum throughput requirement to
determine revenues generated for service under Rate Schedule FFZ.
Only revenues generated from the reservation charge component will
be used to calculate the NPV. Shippers requesting service at a
Negotiated Rate which exceeds the Maximum Rate will be considered
to be paying the Maximum Rate for purposes of determining the bid
with the greatest economic value. For purposes of calculating
each requestor's NPV, the term will be limited to ten (10) years.
If the economic values of separate service requests are equal,
then service shall be offered in sequence starting with the
request with the earliest date. If separate service requests have
equal economic values and the same date of request, service shall
be offered to such requestors on a pro rata basis.