GENERAL TERMS AND CONDITIONS

(continued)


 


 

(b) All bids submitted during the open season shall be

submitted to Pipeline electronically through the

Pipeline's Internet Web Site. Upon conclusion of the

bidding period, Pipeline shall evaluate the bids in

accordance with GT&Cs Section 4.3.


 

(c) If Pipeline is willing to accept a bid, Pipeline shall,

no later than 15 days after the close of the bidding

period, notify Shipper of the bid having the highest Net

Present Value ("NPV"). Shipper shall have 10 days after

receiving notice to notify Pipeline as to whether it

will match the bid having the highest NPV and longest

term (up to five years). If the Shipper elects to

exercise its Right of First Refusal to match the bid

with the highest NPV it must execute a new Service

Agreement containing the terms of that bid, which new

Service Agreement shall succeed the prior agreement

following its expiration; provided, however, that

Shipper shall not be required to pay any rate higher

than the maximum applicable rate.


 

(d) If Shipper does not exercise its Right of First Refusal,

Pipeline may execute a Service Agreement with the entity

submitting the bid with the highest NPV.


 

(e) If Pipeline receives no acceptable bids on the capacity,

the Shipper may continue to receive service at the

maximum rate for the term elected by the Shipper or such

other rate and/or term as agreed to by Pipeline. A

Shipper who continues service under such basis shall

retain its Right of First Refusal only if the resulting

agreement is a Long Term Service Agreement at the

maximum tariff rate.


 

4.3 Net Present Value Standard. Pipeline shall award capacity for bids

received during the open season to Shippers that meet Pipeline's

creditworthiness standards set forth in GT&Cs Section 2.5 and whose

bids, based upon Pipeline's determination, have the highest NPV. The

NPV is the discounted cash flow of incremental revenues per

dekatherm to Pipeline produced, lost or affected by the requests for

service and shall be based upon such factors as the term, quantity,

date on which the requested service is requested