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Northwest Pipeline LLC Notice Detail

Northwest Pipeline LLC


NOTICE # 19-135
Soliciting Email Bids for TF-1 Capacity (Ignacio to Kern) posted on Aug 20 2019 12:30PM

TSP Name:  Northwest Pipeline LLC     TSP:  67977322

Critical:  N
Notice Stat Desc:  INITIATE
Notice Type Desc:  TSP CAPACITY OFFERING
Post D/T:  08/20/2019 12:29 PM MCT
Notice Eff D/T:  08/20/2019 12:29 PM MCT
Notice End D/T:  
Reqrd Rsp Desc:  No response required
Rsp D/T:  

Notice ID:  19-135
Prior Notice:  
Subject:  Soliciting Email Bids for TF-1 Capacity (Ignacio to Kern)

Notice Text:

All Shippers Notification:             Dated August 20, 2019

TO:      ALL SHIPPERS –

FROM:     Jason Ellsworth (801) 584-6752

          Jason.Ellsworth@williams.com

 

 

SUBJECT: AUCTION SOLICITING COMPETING EMAIL

BIDS FOR FIRM TF-1 TRANSPORTATION

CAPACITY ON NORTHWEST PIPELINE'S SYSTEM

 

Northwest has posted the following package of available firm TF-1

Large Customer transportation capacity to its Electronic Bulletin

Board (“EBB”) for competitive bid pursuant to the “Available

Capacity” provisions of Northwest’s Tariff. Northwest will be accepting

Discounted and Recourse Rates.   

 

NOTE:  BIDS FOR POSTED CAPACITY WILL BE CONDUCTED via Email. 

Please call 801 584-6752 or 713-215-6301 if you have any questions or

encounter any problems with your bid(s). Time deadlines will be

electronically monitored and implemented.

 

PACKAGE U-1

Email OFFER #19-0007

    

RECEIPT    DELIVERY   TOTAL    INITIAL   PRIMARY    PREARRANGED

POINT      POINT      DTH/D    CONTRACT  TERM       OFFER

 

Ignacio Plant   Kern River  9,889   09/01/2019 – 09/30/2019   Yes

 

Min. Acceptable Reservation Bid:    $0.05 Dth/d*

Max  Acceptable Reservation Bid:    TF-1 Maximum Base Tariff Rate   

Min. Acceptable Bid Vol:            1 Dth/d

Max. Acceptable Bid Vol:            9,889 Dth/d

Bid Open Date:                08/20/2019 (12:30 p.m. Mountain Time)

Bid Close Date:               08/26/2019 (10:00 a.m. Mountain Time)

Award Deadline:**              08/27/2019 (10:00 a.m. Mountain Time) 

 

Evergreen:                    Yes, Standard Bi-lateral.

 

Discount Conditions:

 

*Any acceptable reservation bid rate less than the TF-1 Maximum

Base Tariff Rate will be composed of the following daily

reservation rate components:

 

(1) A fixed reservation rate at or above the minimum acceptable

reservation bid rate plus;

(2) 50% of any positive net daily spread where the “Net Daily

Spread” is defined as the difference remaining after the

following calculation for each day within the month:

a.  The daily index price for Kern River Opal Midpoint Price, as

b.  published by Platts Gas Daily;

c.  Minus the daily index price for El Paso Bondad Midpoint

d.  price, as published by Platts Gas Daily; and

e.  Minus the TF-1 base tariff volumetric rate;

f.  Minus the TF-1 in-kind fuel reimbursement valued at the

daily index price for El Paso Bondad Midpoint Price, as

published by Platts Gas Daily multiplied by the currently

effective TF-1 fuel rate as identified in Northwest’s FERC Gas

Tariff;

g.  Minus the fixed reservation rate.

h.  Equals the “Net Daily Spread”

The “Combined Daily Rate” equals the Fixed Reservation Rate plus

the Net Daily Spread.   

 

The Combined Daily Rate will be no lower than the minimum and no higher

than the Maximum Base Tariff Rate and remains applicable no matter which

receipt and delivery locations are used by Shipper or by Replacement

Shipper(s).

 

                   PROCEDURE FOR BIDDING AND AWARDING

                           THE POSTED CAPACITY

 

 

Northwest will only accept email bids for this capacity. Bidders may

re-submit a bid with a higher net present value.  Note: Northwest will

not accept multiple bids from a Shipper. To withdraw a bid prior to the

close bid date and time, Shipper must re-submit its bid with the Bid

Withdraw Box checked.

 

Northwest’s email receipt time stamp will be used to determine timely

arrival. If a document is in the process of being received at the Bid

Close Date and Time, Northwest will deem the document as being received

timely.  

 

Maximum Tariff Rate bids will be accepted for any primary contract term,

subject to available capacity.

 

Northwest will only accept discounted bids if the fixed reservation

rates are at or above the minimum acceptable reservation rate for the

maximum bid volume and the initial primary contract term noted above.

 

Northwest will not accept any contingencies.

 

Awarding Capacity

 

Northwest will first award the capacity to Shipper(s) who request the

capacity at the Maximum Base Tariff Rate based upon the net present

value of the bid.

 

Northwest will then award the capacity to Shipper(s) who request the

capacity at a discount (provided the bid is consistent with the

discount conditions and minimum acceptable reservation rate) based upon

the highest rate bid for the fixed reservation component for the entire

capacity offered.  

 

**In the case of a tie, each tied Shipper will have the right to improve

its bid by submitting an improved bid within 24 hours of notification.

If a tie still exists, such capacity will be awarded on a pro-rata

basis to the Shippers indicating a willingness to accept a pro-rata

share.

 

At the conclusion of the awarding process, the winning Shipper(s), must

execute the necessary service agreements on line in Northwest Passage

within five “5” business days of being notified by Northwest. 

 

NORTHWEST PIPELINE, LLC

EMAIL BID FOR FIRM TF-1 TRANSPORTATION CAPACITY

FORM

 

_______________________

       (Date)

 

_______________________________________

 

_______________________________________

 

_______________________________________

      (Company Name & Address)

 

Contact Name:             ________________________________

 

Contact Phone Number:  ________________________________

 

 

VIA Email – jason.ellsworth@williams.com

 

Northwest Pipeline LLC

Attn:  Jason Ellsworth

295 Chipeta Way

Salt Lake City, UT  84108

 

Re: BID FOR AVAILABLE FIRM-TF-1 TRANSPORTATION CAPACITY

 

________________________ (“Shipper”) is requesting that Northwest

Pipeline LLC (“Northwest”) consider the following bid for

available TF-1 transportation capacity as noted below.  Shipper

understands that the procedures outlined in this posting will be

utilized in accepting, evaluating and awarding such bid. 

 

This bid supersedes the bid Shipper submitted on

________________, if applicable.

 

BID:

 

TOTAL CONTRACT DEMAND BID:  9,889 Dth/d OR ______________ Dth/d

                                          (MAXIMUM BIDS ONLY)

 

MINIMUM CONTRACT DEMAND SHIPPER IS WILLING TO ACCEPT IN THE EVENT

TRANSPORTER MUST ALLOCATE THE CAPACITY: ______________ Dth/d

 

IF SUBMITTING A DISCOUNTED RATE BID, INDICATE (YES OR NO) IF SHIPPER IS

WILLING ACCEPT A PRIMARY TERM FOR A PERIOD LESS THAN 9/1/2019 THROUGH

09/30/2019 IN THE EVENT THE CAPACITY IS AWARDED TO A MAXIMUM RATE BID

SHIPPER FOR A PORTION OF THE TERM.    [YES]    [NO]    check one

 

PRIMARY TERM BEGIN DATE: 09/01/2019 OR   ___________________

PRIMARY TERM END DATE:   09/30/2019 OR   ___________________

                                     (MAXIMUM BID RATES ONLY)

 

AFFILIATE OF TRANSPORTER: [YES]      [NO]     check one

 

RESERVATION RATE BID: Circle One

 

Option 1Northwest’s TF-1 Maximum Base Tariff Rate (Rate is exclusive

of fuel, volumetric charges and applicable surcharges)

 

Option 2$______ TF-1 fixed daily discounted reservation rate plus 50% of

any positive Net Daily Spread (per Dth of CD) (Rate is exclusive of fuel,

volumetric charges and applicable surcharges) with the following discount

conditions.

 

Discount Conditions:

 

      The daily TF-1 reservation rate will be composed of the following

components:

 

(1) The fixed reservation rate plus;

(2) 50% of any positive net daily spread where the “Net Daily

Spread” is defined as the difference remaining after the

following calculation for each day within the month:

a.  The daily index price for Kern River Opal Midpoint Price, as

published by Platts Gas Daily;

b.  Minus the daily index price for El Paso Bondad Midpoint

price, as published by Platts Gas Daily; and

c.  Minus the TF-1 base tariff volumetric rate;

d.  Minus the TF-1 in-kind fuel reimbursement valued at the

daily index price for El Paso Bondad Midpoint Price, as

published by Platts Gas Daily multiplied by the currently

effective TF-1 fuel rate as identified in Northwest’s FERC Gas

Tariff;

e.  Minusthe fixed reservation rate.

f.  Equals the “Net Daily Spread”

The Combined Daily Rate equals the Fixed Reservation Rate plus

the Net Daily Spread.   

 

The Combined Daily Rate will be no lower than the minimum and no higher

than the Maximum Base Tariff Rate and remains applicable no matter which

receipt and delivery locations are used by Shipper or by Replacement

Shipper(s).

 

Evergreen Provision    

 

Standard Bi-lateral Evergreen Provision per Section 12.2 of Rate

Schedule TF-1

 

 

 

 


     [ ] Bid Withdrawal Check Box ____________________           

                                (initials / date)

 

Northwest’s acceptance of Shipper’s bid for this firm capacity

will constitute a binding offer from Shipper to Northwest for the

capacity and the terms and conditions posted herein. 

 

Sincerely,

 

______________________________

(Company Name)

_____________________________

(Authorized Person’s Name and Title)

 _____________________________

(Signature and Date)

 

 

Accepted   /    Rejected     by Northwest

 

Rejected Reason: __________________________________________

 

Date:  _______________Name:  __________________________