re : transwestern expansion * * proprietary * *
michelle : thanks for sending this to me so quickly . i do have a couple more questions for you .
1 . what is the discount rate you will be using to calculate the npv in your open season ?
2 . can an affiliate of a company also place a bid for up to the volume available to needles ?
3 . how does the right of first refusal work ?
for example , when we spoke earlier i think you used an example of a $ 3 . 00 bid for 1 year getting equal value as a $ . 30 bid for 10 years ( adjusted for npv , of course ) and the winning party got a rofr . ( let ' s say the 1 year bid won ) . at the end of the year , is the rofr calculated on the $ 3 . 00 value the shipper holds the transport at or is it based on current market conditions . let ' s say the market value has collapsed and the market views this capacity as worth only $ . 28 / dth and the current shipper is willing to match that rate does that mean he can retain the capacity ? then for what term , whatever the market bids that piece for or will there be a set time the ( in years ) that the holder of the capacity will have to match regardless of what the bidder bids ?
i hope this example makes sense . if not , please give me a call to discuss at ( 303 ) 252 - 6224 .
thanks for your help .
terri dickerson
> > > " lokay , michelle " 04 / 17 / 01 12 : 09 pm > > >
transwestern pipeline company red rock expansion
from october 30 , 2000 to november 17 , 2000 , transwestern
posted a notice of open season . as a result of the response to the open
season , transwestern has filed for ferc authority to expand its mainline
by 150 , 000 mmbtu by a proposed in service date of june 2002 . the
project is known as the red rock expansion .
transwestern is continuing to solicit bids from open season
respondents as well as all other interested parties . interested parties
should submit bids conforming to the criteria listed below . the
deadline for bidding is friday , april 20 , 2001 at 5 : 00 p . m . cdt .
if you have questions or need further information , please
contact lorraine lindberg at ( 713 ) 853 - 5403 or your marketing
representative .
volume : 150 , 000 dth / day
points of delivery / receipt :
primary receipt points : east of thoreau
primary delivery points :
topock lateral capacity : 92 , 000 mmbtu
- available point capacity : pge / topock , poi # 56698
( 126 , 000 mmbtu )
mojave topock , poi # 56696 , ( 280 , 000 mmbtu )
calpine / southpoint , poi # 78113 ( 76 , 000 mmbtu )
other delivery points : southwest gas , poi # 78003 ( 86 , 000 mmbtu )
citizens / griffith , poi # 78069 ( 120 , 000 mmbtu )
subject to availability of
additional delivery point
capacity :
socal needles , poi # 10487 ( 50 , 000 mmbtu )
awarding capacity
1 . written offers must include material terms ( rate , term , points ,
quantity ) . shipper should indicate whether it will accept partial
volume in the event allocation is necessary .
2 . shippers ' binding bids must be accompanied by a valid request for
gas transportation service form .
3 . shippers submitting bids containing terms or conditions unacceptable
to transwestern shall not be accepted .
4 . if the total volume of all bids received by transwestern exceeds the
capacity of the proposed expansion , transwestern will award the capacity
based on the highest net present value bid ( calculated consistent with
the net present value provisions of transwestern ' s tariff ) .
5 . in the event of a tie , the capacity shall be awarded on a pro rata
basis .
6 . transwestern reserves the right to reject any bid less than the
maximum tariff rate , or any bid that would cause the red rock expansion
to be uneconomic .
re : transwestern expansion
* * proprietary * *
michelle : thanks for sending this to me so quickly . i do have a couple more questions for you .
1 . what is the discount rate you will be using to calculate the npv in your open season ?
2 . can an affiliate of a company also place a bid for up to the volume available to needles ?
3 . how does the right of first refusal work ?
for example , when we spoke earlier i think you used an example of a $ 3 . 00 bid for 1 year getting equal value as a $ . 30 bid for 10 years ( adjusted for npv , of course ) and the winning party got a rofr . ( let ' s say the 1 year bid won ) . at the end of the year , is the rofr calculated on the $ 3 . 00 value the shipper holds the transport at or is it based on current market conditions . let ' s say the market value has collapsed and the market views this capacity as worth only $ . 28 / dth and the current shipper is willing to match that rate does that mean he can retain the capacity ? then for what term , whatever the market bids that piece for or will there be a set time the ( in years ) that the holder of the capacity will have to match regardless of what the bidder bids ?
i hope this example makes sense . if not , please give me a call to discuss at ( 303 ) 252 - 6224 .
thanks for your help .
terri dickerson
> > > " lokay , michelle " 04 / 17 / 01 12 : 09 pm > > >
transwestern pipeline company red rock expansion
from october 30 , 2000 to november 17 , 2000 , transwestern
posted a notice of open season . as a result of the response to the open
season , transwestern has filed for ferc authority to expand its mainline
by 150 , 000 mmbtu by a proposed in service date of june 2002 . the
project is known as the red rock expansion .
transwestern is continuing to solicit bids from open season
respondents as well as all other interested parties . interested parties
should submit bids conforming to the criteria listed below . the
deadline for bidding is friday , april 20 , 2001 at 5 : 00 p . m . cdt .
if you have questions or need further information , please
contact lorraine lindberg at ( 713 ) 853 - 5403 or your marketing
representative .
volume : 150 , 000 dth / day
points of delivery / receipt :
primary receipt points : east of thoreau
primary delivery points :
topock lateral capacity : 92 , 000 mmbtu
- available point capacity : pge / topock , poi # 56698
( 126 , 000 mmbtu )
mojave topock , poi # 56696 , ( 280 , 000 mmbtu )
calpine / southpoint , poi # 78113 ( 76 , 000 mmbtu )
other delivery points : southwest gas , poi # 78003 ( 86 , 000 mmbtu )
citizens / griffith , poi # 78069 ( 120 , 000 mmbtu )
subject to availability of
additional delivery point
capacity :
socal needles , poi # 10487 ( 50 , 000 mmbtu )
awarding capacity
1 . written offers must include material terms ( rate , term , points ,
quantity ) . shipper should indicate whether it will accept partial
volume in the event allocation is necessary .
2 . shippers ' binding bids must be accompanied by a valid request for
gas transportation service form .
3 . shippers submitting bids containing terms or conditions unacceptable
to transwestern shall not be accepted .
4 . if the total volume of all bids received by transwestern exceeds the
capacity of the proposed expansion , transwestern will award the capacity
based on the highest net present value bid ( calculated consistent with
the net present value provisions of transwestern ' s tariff ) .
5 . in the event of a tie , the capacity shall be awarded on a pro rata
basis .
6 . transwestern reserves the right to reject any bid less than the
maximum tariff rate , or any bid that would cause the red rock expansion
to be uneconomic .