GTN’s Capacity Release Program
Eligibility Requirements for Releasing Capacity
Per GTN’s FERC Gas Tariff, any firm shipper that contracts for firm transportation service under Part 284
is eligible to release all or part of its capacity for use by a qualified Replacement Shipper. Any
Replacement Shipper that has previously contracted for a parcel may also release its capacity to another
party as a secondary release.
Eligibility Requirements for Bidding and Acquiring Capacity
To bid for a parcel, prospective Replacement Shippers must prequalify by meeting the following GTN
creditworthiness standards:
Capacity release contracts have the same credit standards and collateral requirements as Firm
Transportation Service. Security requirements applicable to temporary releases of Existing and
Expansion Capacity will mirror the security requirements of the releasing shipper.
Permanent capacity holders of firm transportation service will always remain liable for credit support, even
if they have temporarily released the capacity.
In a capacity release, a creditworthy Releasing Shipper may choose to waive credit for the Replacement
Shipper. If this occurs GTN will not require credit-worthiness from the Replacement Shipper.
These requirements are consistent for both long-term (>365 days), and short-term capacity release.
Viewing Capacity Release Information on e-trans
If you are interested in acquiring capacity:
• From the Home Page, select Info Postings/Transactional Reports
• From the Transactional Reports Menu, Select Firm. You will find a list of GTN firm capacity
holders.
For more information about recent releases:
• From the Home Page, select Info Postings/Transactional Reports
• From the Transactional Reports Menu, Select Capacity Release. You may view parcel detail and
awarded bids. This information may also be downloaded in text format.
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GTN Contact Information
GTN’s Capacity Release Program is administered through e-trans. If you have any questions about
capacity release, please contact the following GTN representatives at 503.833.4300, Option 2:
Melanie Hunter
Services & Contract Coordinator
Shannon Seagondollar
Services & Contract Coordinator
Brian Tennison
Supervisor, Customer Information Systems
e-trans Fax: 503.833.4395
Jay Story
Director, Gas Control and Transportation Services
503.833.4309
For Credit Information contact:
Ken Nichols
Director, Credit and Risk Management
503.833.4123
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Posting Capacity for Release
Before posting capacity for release, please review the following topics covered in this reference guide:
• Capacity Release Terms and Definitions
• Rate Information/Calculating Release Rates
• Capacity Release Parcel Types
• Capacity Release Time Lines
AND
•
Section 28 -Capacity Release, GTN’s FERC Gas Tariff, First Revised Volume No. 1-A
To Release Capacity:
From the Home Page, select Customer Activities, followed by Capacity Release on the left-hand side
of the screen under CHOOSE FROM THE MENU. Select Create Parcel. You will be prompted to log in
with your e-trans User ID & Password.
The Create Parcel screen will appear.
Choose the agreement number from which you wish to release capacity by selecting the radio button to
the left of that agreement and press Select Contract.
The Create Parcel Screen
The Create Parcel screen is used to post all capacity releases. The Releasing Shipper will be prompted
for information based on:
•
•
•
The parcel type selected
The bid rate basis selected
The special terms and conditions options selected
Tips for Navigating the Parcel Detail Screen:
1. In a pop-up or selection box, use the down arrow key as a scroll bar to move through the
entire list. There may be more selections than those selections that originally appear in the
box. Highlight the option you prefer with the down arrow key.
2. Do not use commas when entering quantities.
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Capacity Release Timelines for Non-biddable Releases
•
No Special Terms or Conditions
(1)
Timely Cycle
posting due by 8:30 a.m. PCT
Evening Cycle
posting due by 3:00 p.m. PCT
Intraday 1 Cycle
posting due by 7:00 a.m. PCT
Intraday 2 Cycle
posting due by 2:00 p.m. PCT
Capacity Release Timelines for Biddable Deals
•
No Special Terms or Conditions
Short Term Releases
(Less than one year)
(1)
Long Term Releases
(Greater than or equal to one year)
4 days
10:00a.m.
2 days
10:00 a.m. PCT
11:00 a.m. PCT
12:00 p.m. PCT
12:30 p.m. PCT
1:00 p.m. PCT
Post Bid/Award Contract
Posting Deadline for Release
-Open Season Bidding Begins
Open Season Ends
-GTN Evaluation of Bids Begins
GTN Evaluation Ends
-Match or Award Communicated
Match Response (Prearr. Biddable)
Award Posting
-Contract Tendered
Business Days
Posting Deadline for Release
-Open Season Bidding Begins
3 days
Open Season Continues
2 days
Post Bid/Award Contract
11:00 a.m. PCT
12:00 p.m. PCT
12:30 p.m. PCT
1:00 p.m. PCT
Open Season Ends
-GTN Evaluation of Bids Begins
GTN Evaluation Ends
-Match or Award Communicated
Match Response (Prearranged Biddable)
Award Posting
-Contract Tendered
Prearranged Deals:
•
Prearranged deals may be posted and awarded in advance of the deadlines shown.
•
The prearranged deal business process timing model applies to every day of the week and holidays (e.g., a
Releasing Shipper may execute a prearranged deal on Saturday with gas flow commencing on Sunday).
Biddable Deals:
•
Offers may be posted in advance of the deadline in order to extend or move up an open season. Open Season ends
no later than 11 a.m. PCT on the day before nominations are due. For longer term releases, the Open Season is
three business days.
•
Open seasons must begin and end on a normal business hour (7 a.m. to 5 p.m. PT), on a normal business day (nonweekend or holiday per NAESB).
(1) Prearranged and biddable deals with special terms and conditions will require up to two additional business days
for evaluation by GTN of requested terms and conditions.
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Capacity Release Parcel Types
Types of Releases
Bidding:
Prearranged Non-Biddable
Not subject to bidding
Prearranged Non-Biddable (B)
Not subject to bidding
Prearranged Biddable
Bidding required
Biddable
Bidding required
First Right of Refusal:
Not applicable
Not applicable
Not applicable
Bid Rate Basis:
Bid Award Criterion:
Reservation, Volumetric or
Volumetric with Take or Pay
Provision
Not applicable
Reservation, Volumetric or
Volumetric with Take or Pay
Provision
Not applicable
Bid Tie-Breaker Method:
Not applicable
Not applicable
Receipt/Delivery Points:
Primary/Secondary points
limited to points specified in
Releaser’s contract
Primary/Secondary points
limited to points specified in
Releaser’s contract
Allows prearranged bidder
first right of refusal.
Reservation, Volumetric or
Volumetric with Take or
Pay Provision
Price, Net Revenue,
Present Value or Releaser
Specified
Pro Rata, Lottery,
Submission Order or
Releaser Specified
Primary/Secondary points
limited to points specified in
Releaser’s contract
Term (Begin/End Dates):
Less than or equal to one
calendar month or 31
contiguous days.
Releaser specified, up to
MDQ as stated in firm
contract selected.
Not applicable
Not applicable
Greater than or equal to one
day.
Greater than or equal to
one day.
Greater than or equal to
one day.
Releaser specified, up to MDQ
as stated in firm contract
selected.
Not applicable
Not applicable
Releaser specified, up to
MDQ as stated in firm
contract selected.
Releaser specified
Releaser specified
Not applicable
Less than or equal to 100%
of ABR
Not applicable
100% of ABR
Releaser specified
Less than 100% of ABR
Releaser specified, up to
MDQ as stated in firm
contract selected.
Releaser specified
Less than or equal to
100% of ABR
Releaser specified
Not applicable
Negotiated between Releaser
and Replacement Shipper
Special Conditions:
Contingent Bids:
Negotiated between
Releaser and Replacement
Shipper
Releaser specified
Not applicable
Releaser specified
Not applicable
FERC Rollover Provision:
Applicable
Not applicable
Negotiated between
Releaser and Replacement
Shipper
Releaser specified
May be accepted at
Releaser’s discretion
Not applicable
Quantity Released:
Minimum Bid Quantity:
Minimum Bid Rate
(% or $ amount):
Minimum Bid Term:
Posted Bid Rate for
Prearranged Deals
(% or $ amount):
Recall/Reput Provision:
Reservation, Volumetric or
Volumetric with Take or
Pay Provision
Price, Net Revenue,
Present Value or Releaser
Specified
Pro Rata, Lottery,
Submission Order or
Releaser Specified
Primary/Secondary points
limited to points specified
in Releaser’s contract
Releaser specified
Releaser specified
May be accepted at
Releaser’s discretion
Not applicable
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General Parcel Information
E-trans automatically fills in the Parcel Creator (Releasing Shipper) and Contract Number.
Biddable Type: Select either Biddable or Non-Biddable. The e-trans default is Biddable.
Prearranged Shipper: If there is a Pre-Arranged Replacement Shipper, choose the Select
Replacement Shipper button. The Select Shipper screen will appear. Use the Shipper Name Filter
to enter in the first few letters or the entire name of the Replacement Shipper. Click Apply Filter.
You will be prompted to select from a table of shippers matching your data criteria.
Parcel Path: Click the Select Parcel Path button. The Primary Path Chooser will appear.
a. E-trans will display the Primary Path(s) associated with the agreement.
b. Choose the Receipt and Delivery Point combination to be released and select Continue. The
default path will be the primary receipt and delivery point.
c. To select a different Receipt Point (secondary receipt point) than indicated by the Primary
Path(s), use the drop down menu to select choices.
d. To select a different Delivery Point (secondary delivery point) than indicated by the Primary
Path(s), use the drop down menu to select choices.
e. After choosing the release path, select Continue.
Capacity & Price Information
Permanent Release: A Releasing Shipper may release all or part of its capacity permanently in
accordance with GTN’s FERC Tariff. Permanent releases are posted in the same manner as
biddable and prearranged parcels. Please refer to Section 28 of GTN’s Gas Tariff, First Revised
Volume No. 1-A for the requirements associated with a permanent release.
a. If the release is permanent, check the Permanent Release Indicator.
b. Indicate the end date of the agreement as the end date of the release.
c. If Permanent Release is selected, e-trans will add the following Special Terms and Conditions
statement to the release:
“This is a permanent release of firm capacity. The release will be made at the full price
for the remainder of the full term of the capacity. The Replacement Shipper will be
financially responsible to GTN for all of GTN’s applicable charges for service. There
shall be no crediting of revenue to the Releasing Shipper and the Releasing Shipper
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shall be relieved of liabilities for the capacity awarded. The right of first refusal shall
transfer to the Replacement Shipper for the capacity awarded.”
Is Rereleasable: The Replacement Shipper may release this capacity. e-trans defaults to 'Yes' by
checking the indicator.
Release Quantity: E-trans defaults to 0 Dth/day. Type in the number of dekatherms/day you wish to
release. E-trans validates the quantity entered against the available MDQ of the release contract.
Minimum Bid Quantity: Type in the minimum quantity you are willing to accept in dekatherms/day.
Maximum Tariff Rate: E-trans will display the Primary Path(s) Maximum Tariff Rate (Reservation
Components Only) associated with the agreement.
Price Denomination: You will be asked to select either a Percentage (of Maximum Rate with one
decimal place) or Fixed Dollar Denominated Value.
Minimum Bid Rate: Type in the minimum bid rate acceptable in the format selected. This field is limited
to six characters including the decimal point.
Waive Credit Check: E-trans defaults to 'No' by remaining unselected and GTN’s older, more stringent
standards apply. When selected, GTN will waive credit requirements for the Replacement Shipper
selected. The Releasing Shipper agrees in such event to remain liable for all charges.
For more information on GTN’s creditworthiness standards, review Paragraph No. 18.3, GTN’s FERC
Gas Tariff, First Revised Volume No. 1-A.
Effective & Open Season Period
Parcel Effective Date: Using the drop down menu, enter the date you wish the release term to begin.
•
•
The begin date is the first day gas will flow.
The begin date may not extend beyond the terms of the agreement selected.
Parcel Expiration Date: Using the drop down menu, enter the date you wish to end the release term.
•
•
•
The end date is the last day that gas will flow.
The end date should be selected based on the parcel type conditions.
The end date may not begin prior to the begin date or extend beyond the terms of the agreement
selected.
Page 7
Minimum Release Period (Days): e-trans defaults to "0" and calculates the number of days in the term
based on the begin and end dates selected. The Minimum Release Period is calculated to full parcel
term upon parcel validation.
Open Season (Bid Period) Effective/Evaluation & Post Date*: E-trans defaults to "Null" and calculates
the Open Season Effective Date, Open Season Expiration Date and the Post Date based on the
selected criteria and the term of the deal (short term or long term). There is no need to enter data in
these fields prior to parcel validation. Refer to the Capacity Release Time Lines in this reference
guide for specific times.
•
•
•
Post Date – The date at which an offer will be posted publicly on e-trans.
Open Season Effective Date (Bid Period Start Time/Date): The time/date at which
competitive bidding on a biddable deal begins. All times are stated in Pacific Clock Time.
Open Season Expiration Date (Bid Period End Time/Date): The time/date at which
competitive bidding on a biddable deal ends.
Additional Open Season Information:
1. Bid Period – The period of time during which a Replacement Shipper may bid to contract for
a parcel which has been posted for release by a Releasing Shipper.
2. Bid Reconciliation Period – The period of time subsequent to the Bid Period during which
Bids are evaluated by GTN.
3. Match Period – The period of time subsequent to the Bid Reconciliation period and before
the notification deadline for awarding capacity for a Prearranged Deal subject to bidding,
during which the Prearranged Shipper may match any higher bids for the Parcel. The Match
Period may be modified by the Releasing Shipper as long as the modification does not
shorten the standard time lines set forth in NAESB Standard 5.3.2. Refer to Paragraph 28.7
Allocation of Parcel, GTN's FERC Gas Tariff, Rirst Revised Volume No. 1-A.
4. Awarding of Parcel (Capacity Award Time/Date) – The time/date when the capacity is
awarded.
5. Changing Open Season Timelines – E-trans also allows the Releasing Shipper to change
the Open Season timelines as long as the changes do not shorten the standard deadlines as
stated in NAESB Standard 5.3.2. E-trans will respond with an error message when the
date/time selected is not in compliance with the standard deadlines.
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Bid Evaluation Information
Bid Rate Basis: The Releasing Shipper may select to release the parcel on a reservation basis or a
volumetric basis:
• Reservation – A charge that requires the Replacement Shipper to pay whether or not gas flows.
• Volumetric – A charge that requires the Replacement Shipper to pay transportation charges only
for the quantity flowed. Volumetric releases may also have a take-or-pay provision:
Standard Take-or-Pay Provision - The Replacement Shipper is responsible on a monthly
basis to utilize on average at least ___% (Minimum Utilization Percentage) of the quantities
successfully bid for. If the Replacement Shipper does not utilize the minimum capacity, the
Shipper will make a minimum payment using the following formula:
Minimum Payment = (Quantity Awarded x (# of days of the award minus the # of days
recalled) x ____% x Percent of Successful ABR).
e-trans defaults to a '100%' Take or Pay Percentage.
Bid Evaluation Method: The Releasing Shipper’s choice of method for evaluating and awarding winning
bids.
• Highest Rate Equivalent – Absolute rate independent of time and quantity.
• Present Value – Please review Section 28 of GTN’s FERC Gas Tariff First Revised Volume No.
1-A for the specific formula that will be applied when this criterion is selected.
• Net Revenue – Rate times quantity times miles independent of when revenues are received.
Tie Breaker Method: The Releasing Shipper’s choice of method for awarding capacity in case of tied
bids.
• Pro Rata – A capacity allocation methodology under which all customers would receive the same
proportion of natural gas service available as their portion of total volumes contracted for.
• Lottery – Tied bidders are selected randomly by a computer-generated program. Awards are
assigned in a random method.
• Order of Submission – First come/first serve method. A capacity allocation method under which
the first shipper to have bid on the parcel posted is awarded the parcel.
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Recall Information & Special Terms
Recall/Reput Conditions: An indicator that tells bidders whether the offer can be recalled by the
Releasing Shipper and/or reput subsequent to the award of capacity to the winning bidder. Capacity can
only be recalled by a Releasing Shipper if it was indicated in the original offer that the capacity released is
subject to recall.
Recall Terms:
No Recall Terms
1
NAESB Standard
24 Hour Notice
48 Hour Notice
User Specified
2
Allow Partial Day Recall
If a Releasing Shipper wishes to recall capacity to be effective for a gas day, the notice should be
provided to GTN and the Replacement Shipper no later than 6 a.m. Pacific Standard Time (8 a.m. CST)
on nomination day. No partial day recalls of capacity are permitted. GTN may take additional time to
evaluate releases with recall/reput conditions other than the standard recall/reput condition as stated in
this paragraph.
Reput allows a Releasing Shipper that has recalled capacity to return same capacity to original
Replacement Shipper. Reput method and rights should be specified at the time of the deal. Reput
method and rights are individually negotiated between the Releasing Shipper and the Replacement
Shipper.
Special Terms: Terms of the release specified by the Releasing Shipper. Special Terms may include but
are not limited to special rate calculations, reporting requirements for volumetric releases, and recall/reput
conditions. GTN requires additional time to evaluate releases with special term and conditions.
1 If a Releasing Shipper wishes to recall capacity to be effective for a gas day, the notice should be provided to GTN and the
Replacement Shipper no later than 6 a.m. Pacific Clock Time on nomination day. Partial day recalls of capacity are permitted if the
"Allow Partial Day Recall" box is checked. Reput allows a Releasing Shipper that has recalled capacity to return same capacity to
original Replacement Shipper. Reput method and rights should be specified at the time of the deal.
2
Releasing shippers may, to the extent permitted as a condition of the capacity release, recall released capacity (scheduled or
unscheduled) at the Timely Nomination cycle and the Evening cycle, and recall unscheduled released capacity at the Intra-Day 1
and Intra-Day 2 Nomination cycles by providing notice to the transporter by the following times for each cycle: 6am PCT for the
Timely Nomination cycle, 3pm PCT for the Evening Nomination cycle; 6am PCT for the Intra-Day 1 Nomination cycle; and 3:00pm
PCT for the Intra-Day 2 Nomination cycle. Notification to replacement shippers will be provided by TSP within one hour of receipt of
recall notification.
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Parcel Validation & Signature
Parcel Validation: Pressing the Validate Current Entries button at the bottom of the Create Parcel
Screen will verify contract details and calculate the Minimum Release Period (Days) and the Parcel
Effective Period. This is the last confirmation of details before posting a parcel.
Parcel Signature: E-trans will automatically populate the User creating the parcel. To post the capacity,
enter your Password and select Save.
Parcel Viewer: The parcel details are displayed including parcel status and parcel number.
Modification or Withdrawal of Parcel
•
•
Parcels may be modified or withdrawn any time prior to the posting deadline.
Parcels may be modified or withdrawn after the posting deadline and up to the close of the
bidding period. However, parcels may not be modified or withdrawn after the bid period opens if
a minimum bid has been made.
To Withdraw a Parcel:
From the Capacity Release Main Menu on the left-hand side of the screen under CHOOSE FROM THE
MENU, select Parcels - Administer Parcel. The Capacity Release Parcel Chooser screen will appear.
The parcels eligible for withdrawal will be listed by parcel number. Choose the parcel that you wish to
withdraw by selecting the radio button to the left of that parcel and press Continue. The Parcel
Administrator Screen will appear with that parcel's details. Select Withdraw Parcel and press Continue.
Modifying/Editing a Parcel:
From the Capacity Release Main Menu on the left-hand side of the screen under CHOOSE FROM THE
MENU, select Parcels - Edit Parcel. The Capacity Release Parcel Chooser screen will appear.
The parcels eligible for modification will be listed by parcel number. Choose the parcel that you wish to
modify by selecting the radio button to the left of that parcel and press Continue.
Recall/Reput Capacity
•
•
•
•
The Releasing Shipper is allowed to recall capacity only if it was indicated in the terms of the
release.
GTN will only honor the recall/reput methods as noted by the Releasing Shipper in the
Recall/Reput Terms of parcel as originally posted.
No partial-day recalls of capacity are allowed.
If the Releasing Shipper wishes to recall capacity to be effective for a gas day, notice must be
provided to GTN and the Replacement Shipper no later than 6 a.m. (PT) on nomination day.
From the Capacity Release Main Menu on the left-hand side of the screen under CHOOSE FROM THE
MENU, select Parcels - Administer Parcel. The Capacity Release Parcel Chooser screen will appear.
The parcels eligible for recall will be listed by parcel number. Choose the parcel that you wish to recall by
selecting the radio button to the left of that parcel and press Continue. The Parcel Administrator Screen
will appear with that parcel's details. Select Recall Parcel and press Continue.
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The Capacity Release Recall Parcel screen will appear. Use the drop down menus to select the Recall
Effective and Expiration Dates. Enter the amount of the recall and press Continue. You will get an on
screen confirmation that the recall was created.
Follow the same steps to modify a pending recall request.
Posting A Bid
From the Capacity Release Main Menu on the left-hand side of the screen under CHOOSE FROM THE
MENU, select Bids - Create Bid. The Capacity Release Submit a Bid screen will appear.
The parcels eligible for bid will be listed by parcel number. Choose the parcel that you wish to place a bid
on by selecting the radio button to the left of that parcel, select Submit a New Bid and press Continue.
The Submit a New Bid screen will appear. This screen displays the Parcel summary information as
specified by the Releasing Shipper. The Releasing Shipper has specified the bidding options available to
the Bidder.
Desired Quantity (if applicable): Enter the quantity you wish to bid for. The default is the maximum
quantity available. Your entry must be greater than or equal to minimum bid quantity.
Minimum Acceptable Quantity (if applicable): Enter the minimum quantity acceptable.
Desired Begin Date (if applicable): Use the drop down menus to select the date you wish to begin
flowing this capacity. The date entered may not begin prior to parcel begin date.
Desired End Date (if applicable): Use the drop down menus to select the date you wish to stop flowing
the capacity. The date entered must not extend beyond the parcel end date.
Bid Rate: Enter the maximum rate you are willing to pay for the capacity. This must be greater than or
equal to the minimum bid rate.
Bid Signature: The bid is not accepted until the bid is signed. After entering your Password, select
Continue. e-trans will perform a quick credit check. If credit is approved, the Bidder will receive a quick
confirmation that the bid was successfully submitted.
Bidding Reminders:
•
•
•
•
•
•
Only complete bids will be accepted by e-trans.
Bids are binding until written or electronic notice of withdrawal is received by GTN.
A previously submitted bid may be modified or withdrawn any time prior to the close of the Bid Period.
When modifying a bid, you must modify its value to be greater than or equal to the prior bid
submitted. e-trans will not allow you to save a revised bid that has a lower value than the prior bid
submitted.
In competitive bidding situations, Bidders should review all submitted bids throughout the bidding
period. The bidding deadline is posted on the Parcel Detail screen.
Bids cannot be withdrawn after the bid period ends.
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Modifying/Withdraw a Bid
From the Capacity Release Main Menu on the left-hand side of the screen under CHOOSE FROM THE
MENU, select Bids - Administer Bid. The Capacity Release Administer Bids screen will appear.
The bid eligible for modification will be listed with the associated parcel number. Choose the bid that you
wish to edit or withdraw by selecting the radio button to the left of that bid, select Edit Bid or Withdraw
Bid and press Continue.
Confirmation and Signing of Awarded Parcels
Via e-mail, e-trans will notify the Replacement Shipper(s) of awarded capacity. This notification will
include the terms of the release as well as the acquired contract number.
To sign a Capacity Release Contract, select Contract Administration on the left-hand side of the screen
under CHOOSE FROM THE MENU, followed by Administer Contracts. The Administer Contracts
screen will appear with all of the Shipper’s contracts. Select the Agreement Number to be signed and
press Select Contract and the Contract Details Screen will appear with the contract details.
Replacement Shippers who obtained capacity through prearranged deals should review the contract
carefully and contact GTN and the Releasing Shipper if there is an error.
Choose Sign Contract, enter your Password and select Sign.
Note: Capacity Release deals are signed once. A signed bid obligates the Bidder to the allocated
amount/contract. Pre-arranged deal, upon awarding, will require a signature.
Rate Information
Capacity Release Rates as Displayed on e-trans
When a Releasing Shipper posts a parcel, e-trans determines the maximum rate of the release based
upon:
•
•
•
•
The rate schedule of the contract selected by the Releasing Shipper (FTS-1, FTS-1 plus MRRS/CES,
or FTS-1 Extensions).
Whether the bid rate basis is reservation or volumetric, it is shown in dollars per dekatherm per
month.
The path of the release.
E-trans displays the capacity release rate to the sixth decimal place consistent with GTN’s tariff.
The capacity release rates as displayed by e-trans DO NOT include all of the applicable transportation
charges that appear on monthly invoices as shown below. The rates displayed by e-trans only include the
applicable reservation-based charges and surcharges (boldface) and are intended for allocation/ranking
purposes only.
Rate Definitions
The rate summaries and definitions found in this reference guide are shown for illustrative purposes only.
For current rate information always refer to GTN’s FERC Gas Tariff, Revised Volume 1-A, Statement of
Effective Rates and Charges of Transportation of Natural Gas – Rate Schedule FTS-1, Sheet Nos. 4, 5.
Page 13
FTS-1 Rates (System Average Rate Components)
Base Rate
Surcharges
-ACA
-GRI - High Load Factor
-GRI - Low Load Factor
Reservation Component
Mileage
Non-Mileage
(Dth/Mile)
(Dth)
0.011212
0.884028
Delivery Component
Mileage
Non-Mileage
(Dth/Mile)
(Dth)
0.000013
0.002100
0.004000
0.004000
0.050000
0.031000
FTS-1 plus MRRS/CES*
Base Rate
MRRS/CES
Surcharges
-ACA
-GRI - High Load Factor
-GRI - Low Load Factor
Reservation Component
Mileage
Non-Mileage
(Dth/Mile)
(Dth)
0.011212
0.884028
0.000227
0.049280
Delivery Component
Mileage
Non-Mileage
(Dth/Mile)
(Dth)
0.000013
0.050000
0.031000
0.002100
0.004000
0.004000
*MRRS – Mitigation Revenue Recovery Surcharge
*CES – Competitive Equalization Surcharge
Base Tariff Rate: The effective rate on file with FERC excluding adjustments.
Reservation Charges (also known as demand charges): A monthly charge to reserve capacity. The
Shipper incurs reservation charges whether or not gas flows.
• Mileage Component is applied per MDQ (maximum daily quantity) per pipeline mile to gas
transported by GTN for delivery to Shipper based on the distance between the primary receipt
and delivery points in Shipper’s contract.
• Non-mileage Component is applied per Shipper’s MDQ at Primary Point(s) of delivery on mainline
facilities.
Delivery Charges (also known as commodity or usage charge): The Shipper incurs delivery charges
based on volumes and distance flowed. The delivery rates are applied per pipeline mile to gas
transported by GTN for delivery to Shipper.
Surcharges:
MRRS: The Mitigation Revenue Recovery Surcharge applies to Subject Shippers pursuant to Paragraph
3.1c of Rate Schedule FTS-1 and Article IV, Section 1c of the Stipulation and Agreement in Docket No.
RP94-149-000.
CES: The Competitive Equalization Surcharge applies to shippers subscribing for a year or more to the
additional capacity made available as a result of the expansion of GTN’s system authorized in Docket No.
CP98-167, as set forth in Paragraph 3.1 (d) of Rate Schedule FTS-1.
ACA (Annual Charge Adjustment Provision): A per-unit rate equivalent to the unit rate assessed
against GTN by the FERC included in GTN’s transportation rates.
Page 14
GRI (Gas Research Institute Adjustment Surcharge): The GRI Adjustment Surcharge is only applied
to the last member interstate pipeline on the transportation route. Therefore, no GRI adjustment is
charge for deliveries into Northwest Pipeline at Spokane, Stanfield or Palouse. Tuscarora is not a
member pipeline.
The reservation portion of the GRI Adjustment is based on whether a shipper has a high or low load
factor:
• High Load Factor: Greater than 50%.
• Low Load Factor: Equal to or less than 50%.
A Shipper’s load factor for each service agreement shall be determined annually using the most recent 12
months of actual throughput available.
The rate information summaries on the next two pages were created to illustrate the components used to
calculate the maximum rates on e-trans for reservation and volumetric releases.
Capacity Release General Terms & Definitions
Bid – An offer made by a qualified shipper in order to acquire a parcel posted for release by a Releasing
Shipper.
Bid Period – The period of time during which a Replacement Shipper may bid to contract for a parcel
which has been posted for release by a Releasing Shipper.
Bid Reconciliation Period – The period of time subsequent to the Bid Period during which Bids are
evaluated by GTN.
Bidding Shipper – Any shipper who is qualified to bid for capacity and who is a party to a prearranged
release.
Business Day – The term “Business Day” shall mean Monday through Friday, excluding U.S. Federal
Banking holidays for transactions in the United States and similar holidays for transactions occurring in
Canada and Mexico. See NAESB Standard 3.2.1.
Capacity Release – The mechanism by which firm capacity is made available by one shipper to another
shipper.
Creditworthiness – An evaluation of a shipper’s financial accountability.
Dekatherm (Dth) – The quantity of heat energy equivalent to one million (1,000,000) British Thermal
Units (MMBtu). Dth is the standard quantity for nominations, confirmations, and scheduled quantities in
the United States. For purposes of GTN’s tariff and associated service agreements, the terms MMBtu
and Dth are synonymous.
Match Period – The period of time subsequent to the Bid Reconciliation period and before the notification
deadline for awarding capacity for a Prearranged Biddable Deal during which the Prearranged Shipper
may match any higher bids for the Parcel.
Parcel – The term utilized to describe an amount of capacity expressed in dekatherms per day, from a
specific receipt point to a specific delivery point for a specific period of time that is released and bid on
pursuant to the capacity release provisions contained in GTN’s Tariff. Also referred to as an offer,
package or release of capacity.
Page 15
Primary Release – The term used to describe the release of capacity by a Releasing Shipper receiving
service under a Part 284 firm transportation rate schedule.
Replacement Shipper – A shipper that has contracted to utilize a Releasing Shipper’s service for a
specified period of time.
Re-release – The term used to describe the release of capacity by a Replacement Shipper receiving
service under a Part 284 firm transportation rate schedule.
The definitions in the following sections are grouped to correspond to the capacity release screens in
e-trans. Items in boldface on the sample screen are the terms defined below the sample screen on each
page.
Parcel Detail Screen Definitions
GTN Capacity Release System
**General Parcel Information**
Contract Number:
(1)
Biddable Type:
Parcel Creator:
Replacement Shipper:
Parcel Path:
Permanent Release:
Is Re-Releasable:
Release Quantity:
Minimum Bid Quantity:
Parcel Effective Date:
Parcel Expiration Date:
Minimum Release Period (Days):
(2)
(3)
(4)
(5)
(6)
(7)
(8)
(9)
(14)
(15)
(16)
Bid Rate Basis:
Bid Evaluation Method:
Tie Breaker Method:
(20)
(21)
(22)
Maximum Tariff Rate:
Price Denomination:
Minimum Bid Rate:
Waive Credit Check:
(10)
(11)
(12)
(13)
Open Season Effective Date:
Open Season Expiration Date:
Post Date:
Recall Terms:
Releasing Shipper's Special Terms:
Parcel Signature/Validate:
(17)
(18)
(19)
(23)
(24)
(25)
Deadlines
(1)
Contract Number: The releasing contract number.
(2)
Biddable Type: An indicator as to whether the deal selected is prearranged and/or subject to bid.
(3)
Parcel Creator (Releaser): A member of the firm transportation shipper that intends to post its
service to be released to a Replacement Shipper, has posted the service for release, or has
released its service.
(4)
Replacement Shipper (Acquirer): A qualified bidder that has negotiated parcel terms and
conditions with the Releasing Shipper prior to an open season or posting of an offer.
(5)
Parcel Path: The path selected by the Releasing Shipper. The selected path may consist of
primary receipt/delivery points or secondary receipt/delivery points.
Page 16
Parcel Detail Screen Definitions Continued
GTN Capacity Release System
**Capacity & Price Information**
Contract Number:
(1)
Biddable Type:
Parcel Creator:
Replacement Shipper:
Parcel Path:
Permanent Release:
Is Re-Releasable:
Release Quantity:
Minimum Bid Quantity:
Parcel Effective Date:
Parcel Expiration Date:
Minimum Release Period (Days):
(2)
(3)
(4)
(5)
(6)
(7)
(8)
(9)
(14)
(15)
(16)
Bid Rate Basis:
Bid Evaluation Method:
Tie Breaker Method:
(20)
(21)
(22)
Maximum Tariff Rate:
Price Denomination:
Minimum Bid Rate:
Waive Credit Check:
(10)
(11)
(12)
(13)
Open Season Effective Date:
Open Season Expiration Date:
Post Date:
Recall Terms:
Releasing Shipper's Special Terms:
Parcel Signature/Validate:
(17)
(18)
(19)
(23)
(24)
(25)
Deadlines
(6)
Permanent Release: Indicates whether or not a Releasing Shipper is releasing all or part of its
capacity permanently in accordance with GTN’s FERC Tariff.
(7)
Is Re-Releasable: Indicates that the Replacement Shipper may release this capacity.
(8)
Release Quantity (Maximum Offer Quantity): The total capacity being offered for release. The
quantity released is considered a delivered quantity in dekatherms per day.
(9)
Minimum Bid Quantity: Minimum offer quantity acceptable to the Releasing Shipper from a
bidder.
(10)
Maximum Tariff Rate: The maximum reservation rate or volumetric equivalent of release
calculated for the agreement and path selected.
(11)
Price Denomination: Specified by the Releasing Shipper.
•
% of Max Rate – Minimum acceptable percentage of the maximum reservation rate that
the Releasing Shipper will accept.
•
Rate Value ($) – The minimum acceptable rate per unit stated in dollar denomination that
the Releasing Shipper will accept.
Note: Bidders will be required to submit bids in terms of the bid rate basis chosen [% of
maximum rate or rate value ($)] by the Releasing Shipper.
(12)
Minimum Bid Rate: Specified by the Releasing Shipper. e-trans posts the rate in
dekatherms/month for reservation and volumetric based releases.
(13)
Waive Credit Check: The Releasing Shipper waives the credit requirements and agrees to
remain liable for all charges associated with the capacity.
Page 17
Parcel Detail Screen Definitions Continued
GTN Capacity Release System
**Effective & Open Season Period**
Contract Number:
(1)
Biddable Type:
Parcel Creator:
Replacement Shipper:
Parcel Path:
Permanent Release:
Is Re-Releasable:
Release Quantity:
Minimum Bid Quantity:
Parcel Effective Date:
Parcel Expiration Date:
Minimum Release Period (Days):
(2)
(3)
(4)
(5)
(6)
(7)
(8)
(9)
(14)
(15)
(16)
Bid Rate Basis:
Bid Evaluation Method:
Tie Breaker Method:
(20)
(21)
(22)
Maximum Tariff Rate:
Price Denomination:
Minimum Bid Rate:
Waive Credit Check:
(10)
(11)
(12)
(13)
Deadlines
Open Season Effective Date:
Open Season Expiration Date:
Post Date:
Recall Terms:
Releasing Shipper's Special Terms:
Parcel Signature/Validate:
(17)
(18)
(19)
(23)
(24)
(25)
(14)
Parcel Effective Date (Release Term Begin Date): The start date of the release term and the
first day of gas flow.
(15)
Parcel Expiration Date (Release Term End Date): The end date of the release term and the
last day of gas flow.
(16)
Minimum Release Period (Days): The period of time during which a Releasing Shipper intends
to release, or has released, all or a portion of its contracted quantity of service to a Replacement
Shipper.
The Minimum Release Period is calculated to full parcel term upon parcel validation.
(17-19) Open Season Period: The deadlines listed in this section will vary based on the type of deal
selected and the term of the deal (short term or long term). Refer to the Capacity Release Time
Lines in this reference guide for specific times.
(17) Opens Season Effective Date (Bid Period Start Time/Date) – The time/date at which
competitive bidding on a biddable deal begins. On e-trans, all times are stated in Pacific Clock
Time.
(18) Open Season Expiration Date (Bid Period End Time/Date) - The time/date at which
competitive bidding on a biddable deal ends.
(19) Post Date – The period of time at which an offer will be posted publicly on e-trans.
Page 18
Parcel Detail Screen Definitions Continued
GTN Capacity Release System
**Bid Evaluation Information**
Contract Number:
(1)
Biddable Type:
Parcel Creator:
Replacement Shipper:
Parcel Path:
Permanent Release:
Is Re-Releasable:
Release Quantity:
Minimum Bid Quantity:
Parcel Effective Date:
Parcel Expiration Date:
Minimum Release Period (Days):
(2)
(3)
(4)
(5)
(6)
(7)
(8)
(9)
(14)
(15)
(16)
Bid Rate Basis:
Bid Evaluation Method:
Tie Breaker Method:
(20)
(21)
(22)
(20)
Maximum Tariff Rate:
Price Denomination:
Minimum Bid Rate:
Waive Credit Check:
(10)
(11)
(12)
(13)
Open Season Effective Date:
Open Season Expiration Date:
Post Date:
Recall Terms:
Releasing Shipper's Special Terms:
Parcel Signature/Validate:
(17)
(18)
(19)
(23)
(24)
(25)
Deadlines
Bid Rate Basis: The Releasing Shipper may select to release the parcel on a reservation basis
or a volumetric basis:
•
•
Reservation – A charge that requires the Replacement Shipper to pay whether or not gas
flows.
Volumetric – A charge that requires the Replacement Shipper to pay transportation charges
only for the quantity flowed. Volumetric releases may also have a take-or-pay provision:
Take-or-Pay Provision – A provision that requires the Replacement Shipper to pay for a
specific quantity stated as a minimum utilization percentage whether taken or not. The
option of specifying a take-or-pay provision is available to volumetric releases.
Standard Take-or-Pay Provision - The Replacement Shipper is responsible on a
monthly basis to utilize on average at least ___% (Minimum Utilization Percentage) of the
quantities successfully bid for. If the Replacement Shipper does not utilize the minimum
capacity, the Shipper will make a minimum payment using the following formula:
Minimum Payment = (Quantity Awarded x (# of days of the award minus the # of days
recalled) x ____% x Percent of Successful ABR).
(21)
Bid Evaluation Method: The Releasing Shipper’s choice of method for evaluating and awarding
winning bids.
•
•
•
Highest Rate Equivalent – Absolute rate independent of time and quantity.
Present Value – Please review Section 28 of GTN’s FERC Gas Tariff First Revised Volume
No. 1-A for the specific formula that will be applied when this criterion is selected.
Net Revenue – Rate times quantity times miles independent of when revenues are received.
Page 19
(22)
Tie Breaker Methods – The Releasing Shipper’s choice of method for awarding capacity in case
of tied bids.
•
•
•
Pro Rata – A capacity allocation methodology under which all customers would receive the
same proportion of natural gas service available as their portion of total volumes contracted
for.
Lottery – Tied bidders are selected randomly by a computer-generated program. Awards
are assigned in a random method.
Submission Order – First come/first serve method. A capacity allocation method under
which the first shipper to have bid on the parcel posted is awarded the parcel.
Parcel Detail Screen Definitions Continued
GTN Capacity Release System
**Recall Information & Special Terms**
Contract Number:
(1)
Biddable Type:
Parcel Creator:
Replacement Shipper:
Parcel Path:
Permanent Release:
Is Re-Releasable:
Release Quantity:
Minimum Bid Quantity:
Parcel Effective Date:
Parcel Expiration Date:
Minimum Release Period (Days):
(2)
(3)
(4)
(5)
(6)
(7)
(8)
(9)
(14)
(15)
(16)
Bid Rate Basis:
Bid Evaluation Method:
Tie Breaker Method:
(20)
(21)
(22)
(23)
Maximum Tariff Rate:
Price Denomination:
Minimum Bid Rate:
Waive Credit Check:
(10)
(11)
(12)
(13)
Open Season Effective Date:
Open Season Expiration Date:
Post Date:
Recall Terms:
Releasing Shipper's Special Terms:
Parcel Signature/Validate:
(17)
(18)
(19)
(23)
(24)
(25)
Deadlines
Recall/Reput Conditions: An indicator that tells bidders whether the offer can be recalled by the
Releasing Shipper and/or reput subsequent to the award of capacity to the winning bidder.
Capacity can only be recalled by a Releasing Shipper if it was indicated in the original offer that
the capacity released is subject to recall.
If a Releasing Shipper wishes to recall capacity to be effective for a gas day, the notice should be
provided to GTN and the Replacement Shipper no later than 6 a.m. Pacific Standard Time (8 a.m.
CST) on nomination day. GTN may take additional time to evaluate releases with recall/reput
conditions other than the standard recall/reput condition as stated in this paragraph.
Reput allows a Releasing Shipper that has recalled capacity to return same capacity to original
Replacement Shipper. Reput method and rights should be specified at the time of the deal.
Reput method and rights are individually negotiated between the Releasing Shipper and the
Replacement Shipper.
(24)
Releasing Shipper's Special Terms: Conditions of the release specified by the Releasing
Shipper. Special conditions may include but are not limited to special rate calculations, reporting
requirements for volumetric releases, and recall/reput conditions. GTN requires additional time to
evaluate releases with special term and conditions.
Page 20
(25)
Parcel Validation: Press Validate Current Entries at the bottom of the Create Parcel Screen
will verify contract details and calculate the Minimum Release Period (Days) and the Parcel
Effective Period. This is the last confirmation of details before posting a parcel.
Parcel Signature: e-trans will automatically populate the User creating the parcel. To post the
capacity, enter your Password and select Save.
Parcel Bid Information Definitions
Bid Details
Desired Quantity:
Minimum Acceptable Quantity:
Begin Date:
End Date:
Bid Term:
Bid Rate:
Affiliated With Releasing Shipper:
Parcel Details
(1)
(2)
(3)
(4)
(5)
(6)
(7)
Maximum Available Quantity:
Maximum Allowable Bid Quantity:
Earliest Begin Date:
Latest End Date:
Minimum Term:
Minimum Bid Rate:
Parcel Path:
Parcel ID:
(8)
(9)
(10)
(11)
(12)
(13)
(14)
(15)
(1)
Desired Quantity: The quantity of capacity stated in dekatherms/day you wish to acquire. The
quantity entered must be less than or equal to the maximum available quantity selected by the
Releasing Shipper.
(2)
Minimum Acceptable Quantity: The minimum quantity of capacity stated in dekatherms/day you
wish to acquire. The quantity entered must be greater than or equal to the minimum allowable bid
quantity selected by the Releasing Shipper.
(3)
Begin Date: In biddable deals, the Bidder may select a desired begin date. The desired begin
date may not begin prior to or extend beyond the release term indicated by the Releasing
Shipper.
(4)
End Date: In biddable deals, the Bidder may select a desired end date. The desired end date
may not begin prior to or extend beyond the release term indicated by the Releasing Shipper.
(5)
Bid Term: The period of time during which a Releasing Shipper intends to release.
(6)
Bid Rate: The rate the Bidder is willing to pay for the capacity. The bid rate must be entered as a
percentage of the maximum reservation rate or dollar-denominated value as selected by
Releasing Shipper.
(7)
Affiliated With Releasing Shipper: An indicator that tells whether the bidder is affiliated with the
Releasing Shipper.
(8)
Maximum Available Quantity: The total capacity being offered for release. The quantity
released is considered a delivered quantity in dekatherms per day.
(9)
Minimum Allowable Bid Quantity: Minimum offer quantity acceptable to the Releasing Shipper
from a bidder.
(10)
Earliest Begin Date: The start date of a release term as specified by a Releasing Shipper and
the first day of gas flow.
(11)
Latest End Date: The end date of a release term as specified by the Releasing Shipper and the
last day of gas flow.
Page 21
(12)
Minimum Term: The period of time in which a Releasing Shipper intends to release.
(13)
Minimum Bid Rate: Specified by the Releasing Shipper.
(14)
Parcel Path: The path selected by the Releasing Shipper.
(15)
Parcel ID (Offer Number): A unique number identifying the capacity being offered by a
Releasing Shipper. The parcel ID IS NOT a contract number.
Page 22