Elba Express Company, L.L.C.

Original Volume No. 1

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Effective Date: 03/01/2010, Docket: RP10-342-000, Status: Effective

Original Sheet No. 27 Original Sheet No. 27


(i) Subject to all requirements for submitting a valid request

for firm service herein and subject to the requirements of

Section 19 of the General Terms and Conditions hereto, firm

capacity will be allocated to the valid request(s) that

generate the highest net present value ("NPV") to COMPANY.

When two or more requests for service are being evaluated

under this section, requests evaluated at the same time

shall be considered together under the same criteria. Net

present value will be determined based on the discounted

cash flow of revenues to COMPANY produced, lost, or affected

by the request(s) for service. In determining the highest

net present value, COMPANY will consider objective criteria

only. Such criteria may include, without limitation, the

Transportation Demand requested, the duration of the service

requested, the date on which the requested service would

commence, the applicable Reservation Charge, and such other

factors available based on the requests for service received

by COMPANY, including the cost(s) or cost of service

attributable to any facilities required by COMPANY to

provide service. COMPANY may calculate the NPV on a per

unit basis by dekatherm or on a total revenue basis. The

NPV shall include only revenues generated by the reservation

rate component or other form of revenue guarantee, as

proposed by the bidder(s). With respect to evaluating bids

at less than the maximum rate, COMPANY reserves the right to

evaluate bids based on the percent of the maximum rate bid.

For Negotiated Rate bids proposing a reservation rate or

other form of revenue guarantee, which exceeds the maximum

applicable reservation rate, the net present value

calculated for the bid may not exceed a net present value

that is calculated assuming that the maximum applicable

reservation rate shall be in effect during the full term

proposed in the bid, in place of the reservation rate(s) or

other revenue guarantee(s) proposed in the bid. As used in

this section, "revenue guarantee" shall mean a volumetric or

usage rate bid along with a minimum throughput commitment.

In performing a net present value evaluation of a Negotiated

Rate bid proposing a volumetric or usage rate along with a

minimum throughput commitment, COMPANY shall consider only

the fixed costs proposed to be recovered through the

volumetric or usage rate bid in addition to any reservation

rate included in the bid. The net present value discount

factor used by COMPANY will be applied consistently to all

requests for capacity being evaluated at the same time.

COMPANY may specify a maximum term to be bid. For purposes

of its NPV evaluation, COMPANY may consider the aggregate

NPVs of two or more bids.