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DATE: March 18, 2016
TIME: 2:30 PM CCT
TO: ALL ANR PIPELINE COMPANY CUSTOMERS
RE: AVAILABLE FIRM STORAGE AND TRANSPORTATION CAPACITY (Open Season #197)
ANR Pipeline Company ("ANR" or "Transporter") is initiating an aggregate Net Present Value (NPV) binding open season for the following firm capacity.
ANR is conducting this open season with the intention of offering two distinct products. The first product includes Storage services combined with storage-related Transportation services to and from ANR's Injection/Withdrawal point. The second product includes Storage - Only services. For the combined Storage and Transportation services capacity, the storage rate in the open season will have an undisclosed minimum rate. There is also an undisclosed minimum rate for the Storage - Only service offering. Please use Bid Forms 1, 2 and 3 when submitting bid(s) for the combined Storage and storage-related Transportation capacity. Please use Bid Form 4 when submitting bid(s) for the Storage - Only capacity.
ANR notes that the product that combines Storage and Transportation services is being offered as a convenience to shippers that desire a streamlined product. The Storage - Only product is available in lieu of the combined product offering.
STORAGE CAPACITY ALONG WITH TRANSPORTATION CAPACITY
ANR has firm storage capacity of 2,854,440-Dth of 90 Day Annual Ratcheted Service beginning April 1, 2016 for a minimum term of one (1) year. Shippers may bid more than one (1) year, provided additional term is added in annual increments, however, ANR reserves the right to reject bids should the rate bid not meet ANR's undisclosed requirements.
In conjunction with this firm storage capacity, ANR is offering the following firm transportation capacity. Bidders MUST bid for Storage services, as well as injection and/or withdrawal transportation services if not electing to bid for storage only service as stated below. (Note: Transportation MDQ's may not exceed applicable MDIQ or MDWQ as adjusted for fuel)
Storage Withdrawal Transportation Capacity (November through March):
Withdrawal Transportation Option
Storage Withdrawal transportation capacity is available from ANRPL Storage Facilities to the Willow Run delivery point.
Minimum Rates
The minimum acceptable reservation rate for the primary route from ANRPL Storage Facilities receipt point to the Willow Run delivery point is $1.5208 per dekatherm per month. ANR will reject any bids less than $1.5208/dth/month.
If Shipper elects the ANRPL Storage Facilities to the Willow Run delivery point, and bids less than Transporter's Maximum Tariff Rates, Shipper will also receive Detroit A and Defiance Delivery as a secondary delivery points at the same rate as the primary route. Shipper will also receive Stag Lake as a secondary delivery point at an incremental reservation rate of $0.03 per dth.
If Shipper bids less than Transporter's Maximum Tariff Rates, all secondary receipts and deliveries not listed above will be priced at Transporter's Maximum Tariff Rates.
Storage Injection Transportation Capacity (May through October):
Injection Transportation Option
Storage injection transportation capacity is available from a receipt point within the Joliet Hub to ANRPL Storage Facilities.
Minimum Rates
The minimum acceptable reservation rate for the primary route from a receipt point within the Joliet Hub to ANRPL Storage Facilities delivery is $2.433 per dekatherm per month. ANR will reject any bids less than $2.433/dth/month.
If Shipper elects the injection transportation option and bids less than Transporter's Maximum Tariff Rates, Shipper will receive the following secondary receipt and delivery points on their contract at the same rate as the bid rate:
Secondary Receipt Points: All Joliet Hub receipts excluding power plants
Secondary Delivery Points: Farwell Delivery (11616), Willow Run (42078)
If Shipper bids less than Transporter's Maximum Tariff Rates, all secondary receipts and deliveries not listed above will be priced at Transporter's Maximum Tariff Rates.
STORAGE CAPACITY ONLY
ANR has firm storage capacity of 2,854,440-Dth of 90 Day Annual Ratcheted Service beginning April 1, 2016 for a minimum term of one (1) year. Shippers may bid more than one (1) year, provided additional term is added in annual increments, however, ANR reserves the right to reject bids should the rate bid not meet ANR's undisclosed requirements.
The minimum acceptable reservation rate for any primary route other than those stated above, for either withdrawal or injection, will be Transporter's Maximum Tariff Rate per dekatherm per month. ANR will reject any bids less than Transporter's maximum tariff rate/dth/month for routes not specified above.
ANR will be holding this open season in accordance with Part 6.2.10 (i) of the General Terms and Conditions of its FERC Gas Tariff, commencing at 2:30 p.m. CCT Friday March 18, 2016 and ending at 10:00 a.m. CCT on Wednesday, March 23, 2016. Winning bidders will be notified no later than 3:00 p.m. CCT Wednesday, March 23, 2016. Pursuant to ANR's tariff, all requests for service for the capacity available above will be treated under this open season. All bids submitted during the open season may be withdrawn and/or replaced with an equal or higher NPV bid during the open season period. Bids cannot be replaced with lower NPV bids.
ANR reserves the right to reject negotiated rate bids. ANR reserves the right to reject bids that are less than maximum tariff rates or do not meet the minimums as established in this open season. ANR reserves the right to reject bids with deviations in monthly MDQ's or MDWQ's. ANR reserves the right to reject contingent bids. ANR reserves the right to reject any bid for a term of less than one (1) year. ANR will reject transportation bids that do not include storage bids. ANR reserves the right to reject transportation bids whose term is longer than the associated storage bid. ANR reserves the right to reject bids which include transportation rate schedules other than FTS-1. ANR reserves the right to reject any request that is incomplete, contains modifications to the bid form(s), or conflicts with ANR's FERC Gas Tariff. ANR has the right but not the obligation to clarify and finalize bids containing non-specific delivery meters. Available capacity volumes are contingent upon mainline, meter and lateral capacity. ANR has the right to award capacity to alternate receipt or delivery points if capacity is unavailable at the meters specified in the bid. This open season is subject to ANR's FERC Gas Tariff and to all applicable laws, orders, rules, and regulations of authorities having jurisdiction.
Upon completion of this open season, all remaining bids will be considered binding until a successful bid(s) has been awarded. All final bids received during the open season will be evaluated on a Net Present Value per MSQ (NPV) basis using the factors below. All bids should refer to Open Season #197.
NPV/MSQ = En [R*(1 / (1+i)**n)]/MSQ
En = Summation of months 1 through n (Sigma)
n = term in months
MSQ= Contract MSQ
R = Incremental monthly revenue of all services/paths in bid
i = Monthly Discount Factor (current FERC quarterly rate) This rate can be found at http://www.ferc.gov/legal/acct-matts/interest-rates.asp
These factors will be weighted equally. If more than one bid has the same NPV and requests for service exceed available capacity, then the capacity shall be awarded pro rata to shippers with matching NPV bids. In the event of a tie parties interested in this capacity may specify an acceptable minimum prorated MDQ, MSQ and MDWQ.
Parties interested in this capacity should submit a binding bid via email by sending their requests to erik_anderson@transcanada.com. Contact Erik Anderson to confirm ANR's receipt of any bid.
For further information or for questions about specific routes in this open season, please contact your designated Account Manager or one of the Account Managers listed below.
Anderson, Erik 832-320-5606
Hopper, Bruce 262-792-5403
Adam Lakhani 832-320-5559
Lozano, Lonnie 832-320-5679
Skarb, Gary 248-205-4536
Sowa, Amy 832-320-5374
Open Season # 197
Binding Bid Form 1
Firm Storage Service With Transportation
Shipper Company Name:
Shipper Duns Number:
Shipper Contact (Name):
Title:
Address:
Telephone No.:
Fax No.:
Email:
Service Commencement Date: April 1, 2016
Primary term requested: March 31, 2017
Additional Term End Date: ________________________
Storage MSQ Requested (Dth):
Acceptable minimum prorated MSQ: ________________________
Maximum Daily Withdrawal Quantity: MSQ ÷ 90
Maximum Daily Injection Quantity MSQ ÷ 175
FSS Storage Service: Flexible Entitlements - Ratcheted
Circle desired rate election: Recourse rate (max tariff)
Discounted rate
If discounted rate elected above
Total Storage Reservation Rate Bid: _________________________
Note: Transporter will split the total reservation rate into Deliverability and Capacity reservation rates at its sole discretion
Signed:
By:
Title:
Open Season # 197
Binding Bid Form 2
Firm Transportation Service
(Storage withdrawal)
Shipper Company Name:
Service Commencement Date: November 1, 2016
Service End Date: March 31, 2017
Additional Term End Date: ________________________
Transportation Service: FTS-1
Withdrawal Transportation Quantity (Dth/d):
(Cannot exceed the MDWQ adjusted for fuel)
Withdrawal Transportation Receipt Point Name: ANRPL Storage Facilities (#153808)
Withdrawal Transportation Primary Delivery Point: Willow Run (#42078)
Minimum Reservation Rate: $1.5208/dth/mo
Reservation Rate Bid:
Signed:
By:
Title:
Open Season # 197
Binding Bid Form 3
Firm Transportation Service
(Storage injection)
Shipper Company Name:
Service Commencement Date: May 1, 2016
Service End Date: minimum October 31, 2014 October 31, 2016
Additional Term End Date: ________________________
Transportation Service: FTS-1
Injection Transportation Quantity (Dth/d):
(Cannot exceed the MDIQ adjusted for fuel)
Injection Transportation Receipt Point Name:
Injection Transportation Primary Delivery Point Name: ANRPL Storage Facilities (#153808)
Minimum Reservation Rate: $2.4333/dth/mo
Reservation Rate Bid:
Signed:
By:
Title:
Open Season # 197
Binding Bid Form 4
Firm Storage Service Without Transportation
Shipper Company Name:
Shipper Duns Number:
Shipper Contact (Name):
Title:
Address:
Telephone No.:
Fax No.:
Email:
Service Commencement Date: April 1, 2016
Primary term requested: March 31, 2017
Additional Term End Date: ________________________
Storage MSQ Requested (Dth):
Acceptable minimum prorated MSQ: ________________________
Maximum Daily Withdrawal Quantity: MSQ ÷ 90
Maximum Daily Injection Quantity MSQ ÷ 175
FSS Storage Service: Flexible Entitlements - Ratcheted
Circle desired rate election: Recourse rate (max tariff)
Discounted rate
If discounted rate elected above
Total Storage Reservation Rate Bid: _________________________
Note: Transporter will split the total reservation rate into Deliverability and Capacity reservation rates at its sole discretion:
Signed:
By:
Title:
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