GENERAL TERMS AND CONDITIONS OF SERVICE
(Continued)
9. OPEN SEASON PROCEDURES (Continued)
9.1 Open Seasons for Existing Capacity (Continued)
(d) Valuation of Bids (Continued)
If the economic values of separate bids are equal, then
service shall be offered to such requestors on a pro-rata
basis. The NPV is the discounted cash flow of the bid
according to the following formula, net of revenues lost or
affected by the request for service:
n
(1 + i) -1
Present Value per = P * R * __________
n
i (1 + i)
where:
P = percent of the rate or charge that the Shipper
is willing to pay.
R = rate or charge calculated as: the applicable
maximum authorized reservation charge(s) per Dth
in effect at the time of the bid for service.
i = FERC's annual interest rate divided by 12.
n = number of months for which the bidder wishes to
contract.
The NPV formula will be affected by the term and rate
requested. In the event NBP intends to entertain bids for
service under index-based or other Negotiated Rate Formulae,
the future value of which cannot be determined at the time
of the bidding, NBP shall estimate the future revenues to be
received under the Negotiated Rate Formula using currently
available data.
(Continued)
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Issued by: John A Roscher, Director of Rates & Regulatory Affairs
Issued on: June 6, 2002 Effective on: August 12, 2002
Filed to comply with order of the Federal Energy Regulatory Commission, Docket
No. CP01-22-000, et al., issued May 18, 2001, 95 FERC ¶ 61,259 |