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:
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: __________________________