Notice of Binding Open Season for Firm Capacity Subject to a Prearranged Deal Winter 2024-25

TSP Name

Millennium Pipeline Company, L.L.C.

TSP

607821050

Date

Time

Notice ID

25913309

Notice Type Description: TSP Capacity Offering
Notice Stat Desc: Initiate
Prior Notice:
Critical: Y
Reqrd Rsp Desc: No Response Required

Post
Notice Effective
Notice End

Response

09/12/24
09/12/24
10/12/24



3:01:31 PM
12:00:00 AM
12:00:00 AM



Subject: Notice of Binding Open Season for Firm Capacity Subject to a Prearranged Deal Winter 2024-25

Author: Bonnie Carroll

Notice Text

Date:     September 12, 2024To:         All potential shippers, customers and interested parties Re:         Notice of Binding Open Season for Firm Capacity Subject to a Prearranged Deal  I. General Millennium hereby announces the commencement of a binding open season for a combined package of firm transportation services, for the November 1, 2024 through March 31, 2025 period, under its existing Rate Schedule FT-1 and Sections 4.4(b)(1)(ii), 4.4(c) and 4.4(d) of the General Terms and Conditions of Millennium’s tariff, subject to a prearranged deal.  The segment capacity and terms of the prearranged deal are as follows:Offer # 1Receipts              DeliveriesSegment Capacity/Delivery Point CapacityPrearranged RatePrearranged Term Sanford w/ East Pool, Stagecoach and Laser listed as secondary receipt pointsRamapo20,000 Dth/day*$0.583/DthNovember 1, 2024 through March 31, 2025 SanfordStagecoach20,000 Dth/day$0.37/DthNovember 1, 2024 through March 31, 2025
*This is operationally available capacity that Millennium is making available for the term listed aboveThis Open Season will commence at 3:00 p.m. CDT on September 12, 2024 and close at 3:00 p.m. CDT on September 17, 2024 (Open Season Period).  To be considered, interested parties must submit bids electronically to:  Millennium Pipeline Company, L.L.C. Attention: Glen BennettPhone: (281) 253-7763Email: Bennett@millenniumpipeline.com  II. Service Type, Rates and Fuel Service will be provided pursuant to Millennium’s Rate Schedule FT-1 as more fully described in and pursuant to Millennium’s FERC Gas Tariff.  If discounted or negotiated rates are offered, a shipper’s base reservation rate will be as set forth in the bid.  In addition, shipper will pay applicable commodity rates, and all applicable surcharges, and Retainage under Millennium’s Rate Schedule FT-1.  The Eastern System Upgrade retainage rate will be charged on the operationally available capacity.  Currently, the maximum reservation rate under Rate Schedule FT-1 and applicable to transportation paths in the package is a daily rate of $0.583/Dth.  Consistent with Section 34.7 of the General Terms and Conditions (“GT&C”) of Millennium’s FERC Gas Tariff, for purposes of assessing bids, the net present value of  bids containing a reservation rate that exceeds the current maximum recourse rate for service under the applicable Rate Schedule during all or any portion of the term contained in the bid, shall not exceed the net present value that is calculated assuming the maximum recourse rate for service under the applicable Rate Schedule is in effect during the full term contained in the bid, in place of the reservation rate contained in the bid. III. Term and Bid EvaluationThe term for the offer will commence on November 1, 2024 and may extend through March 31, 2025 for the package of capacity.  To determine the winning bidders, Millennium will calculate the NPV of each bid for the package of capacity based on the bids for the 5 months of service commencing on November 1, 2024.  For purposes of calculating the net present values of the bids, Millennium will use an annual discount rate of 8.50%, the current FERC-approved interest rate set forth in Section 154.501(d) of the FERC’s regulations and allowed by GT&C Section 4.4(b)(1)(i) of Millennium’s FERC Gas Tariff.IV. Open Season Process Participation in this Open Season will be considered binding on both the participants and on Millennium.  Any shipper interested in participating in the Open Season must submit a bid electronically to Millennium, prior to the close of the Open Season Period, by a duly authorized representative.  Only bids received during the Open Season Period will be considered.  Shippers may bid on any portion or all of the capacity offered.Upon the close of this Open Season, in accordance with Section 4.4(c) the prearranged shipper will have the opportunity to match any bid that exceeds the NPV of the prearranged agreement.  If the prearranged shipper elects not to match, MPC will notify successful bidders no later than 4:00 p.m. CDT on September 18, 2024.  Any awards of available capacity will be made independently based upon objective criteria and the economic value of the bid to Millennium.     Millennium reserves the right to pull this Open Season prior to the close of bidding.  Millennium reserves the right, on a nondiscriminatory basis, to reject any bid which, in Millennium’s sole determination, is incomplete, is inconsistent with the terms of Millennium’s FERC Gas Tariff or this Open Season notice, is received after the close of this Open Season Period, is otherwise deficient in any respect or requests service outside the capacity offered or is submitted by a bidder who fails to meet the creditworthiness requirements set forth below.   This Open Season is subject to Millennium’s FERC Gas Tariff and to all applicable laws, orders, rules, and regulations of authorities having jurisdiction. V. Creditworthiness To be eligible to participate in this Open Season, all potential shippers must meet certain minimum financial criteria as required by GT&C Section 3 of Millennium’s FERC Gas Tariff.  Potential shippers may contact Usman Khan, Millennium’s credit contact at (832) 320-5418 or usman_khan@tcenergy.com  or Jennifer Beasley a (832) 320-5150 Jennifer_Beasley@TCEnergy.com to initiate the credit review process.  Potential shippers will ultimately be required to demonstrate an ability to satisfy Millennium’s creditworthiness provisions to be considered in the awarding of capacity and must agree to provide all required credit support documents (such as a parent guaranty or letter of credit in form and substance acceptable to Millennium).  Millennium reserves the right to reject any potential shipper if Millennium, in its sole discretion, deems such potential shipper to be an unacceptable credit risk. Potential shippers must provide financial information requested by Millennium in accordance with GT&C Section 3.3 of Millennium’s FERC Gas Tariff.  Millennium will conduct a credit evaluation in the manner outlined in Section 3.9 of the General Terms & Conditions of Millennium’s FERC Gas Tariff.  Depending on the shipper’s creditworthiness, a shipper may be required to provide assurance of payment as described in GT&C Section 3.9 of Millennium’s FERC Gas Tariff.  A potential shipper must provide and maintain such required assurance of payment to Millennium within 30 days of Millennium’s notice to the potential shipper indicating assurance is required.  To the extent permitted by Millennium’s FERC Gas Tariff, such creditworthiness requirements will remain in effect during the term of the shipper’s transportation agreement. If you have any questions regarding this Open Season, please contact Glen Bennett at (281) 253-7763 or bennett@millenniumpipeline.com.