WELCOME TO IROQUOIS CAPACITY RELEASE TRAINING

Transcription

1 WELCOME TO CAPACITY RELEASE TRAINING George Alcoforado Helena Clancy Business Analyst Sr. Transportation Services Rep (203) (203) AIM: georgeiroquois AIM: helenairoquois

2 TABLE OF CONTENTS OVERVIEW... 1 TYPES OF CAPACITY RELEASES... 2 TIMELINE FOR CAPACITY RELEASES... 3 RETRIEVING OFFERS... 5 SORTING OFFERS... 7 RELEASING SHIPPERS ADDING AN OFFER... 9 RELEASING SHIPPERS THE OFFER WIZARD RELEASING SHIPPERS - COPY OFFER OFFER STATUS REPLACEMENT SHIPPERS - ROLES AND RESPONSIBILITIES REPLACEMENT SHIPPERS ADDING A BID REPLACEMENT SHIPPERS THE BID WIZARD GLOSSARY FREQUENTLY ASKED QUESTIONS The information provided herein is meant to be in full compliance with the General Terms and Conditions of the Iroquois FERC Gas Tariff. In the event of a discrepancy between the terms of this training guide and the Tariff, the terms of the Tariff are controlling.

3 OVERVIEW PAGE 1 Per FERC Order No. 636, a Shipper with a Firm Reserved Service Transportation Contract can remarket its transportation capacity through a capacity release process. Under Iroquois FERC Gas Tariff, Section 28 of the General Terms and Conditions, (Sheet Nos D) Iroquois grants such service option. Per FERC Order No. 712, Shippers may bid or prearrange a rate greater than Iroquois maximum tariff rate if a capacity release is for a term of less than or equal to one year. Prearranged capacity releases with terms greater than 31 days and less than or equal to one year are always biddable unless one of the following holds true: The Releasing Shipper has an Asset Management Agreement (AMA) in place with the Prearranged Replacement Shipper; or The Releasing Shipper is releasing its capacity to a Prearranged Replacement Shipper pursuant to a state mandated Retail Choice Program (RCP). The following information explains key details of Iroquois capacity release process. It is assumed that you already have access to IOL and are generally familiar with the application and its menu items. Initial Contracting Requirements for Releasing Shippers Submit a completed Blanket Capacity Release Form to Iroquois Contracting & Credit Services Representative at fax no , or lori_gwilliam@iroquois.com. Be sure to keep a copy. Initial Contracting Requirements for potential Replacement Shippers These requirements must be met prior to being able to bid on any capacity release offers or enter into a prearranged deal with a Releasing Shipper: IF you are not a Shipper on Iroquois (RTS, ITS, HUB or PALS), you must also complete Sections 8 through 10 of Iroquois Service Request Form, found on Iroquois website. Please call Lori Gwilliam, Contracting & Credit Services Representative, at , if you have any questions regarding the necessary forms. Supply appropriate credit information for review. Execute and return Blanket Gas Transportation Contract for Firm Reserved Service with Replacement Shipper within 5 days of receipt. CAPACITY RELEASE GUIDE - SEPT 2016

4 TYPES OF CAPACITY RELEASES PAGE 2 Repl SR Role Ind Replacement Shipper Role Indicator: AMA Asset Management Agreement (Replacement Shipper is the asset manager) RCP Retail Choice Program (Replacement Shipper is associated with a state-approved RCP) OTH Other (Replacement Shipper is not subject to an AMA or associated with a RCP) Prearranged Deal (Releasing Shipper made deal with a Replacement Shipper) Open Bidding The Releasing Shipper does not have a prearranged deal with any Replacement Shipper and elects to place a capacity release offer out for bid. All open bidding offers are done with a Repl SR Role Ind value of OTH. NOTE: No offer > 1 year can have a rate greater than the maximum applicable tariff rate. Permanent Offers When a shipper releases capacity on a permanent basis, the contract must be manually awarded and a Three-way Permanent Capacity Replacement Contract must be executed. Contact the Contracting & Credit Services Representative for details.

5 TIMELINE FOR CAPACITY RELEASES PAGE 3 Capacity Release Timeline (all times are Central Clock Time) Non-biddable Releases Offer is submitted and IOL awards it immediately Posting of non-biddable prearranged deals is due no later than one hour prior to the nomination deadline for the applicable cycle. Posting deadlines are: o Timely Cycle 12:00 Noon o Evening Cycle 5:00 p.m. o Intraday 1 Cycle 9:00 a.m. o Intraday 2 Cycle 1:30 p.m. o Intraday 3 Cycle 6:00 p.m. Contract is issued within one hour of the Award posting. Nomination is possible beginning at next available nomination cycle for effective date of the contract. Prearranged Biddable Releases (less than or equal to 1 year) Offers should be tendered so that they can be posted by 9:00 a.m. on a Business Day, and tender deadline o cannot be less than the Submission date/time, and o cannot be less than the Rel Req Post Date/Time Bid period must be greater than or equal to 1 hour Bid deadline is 10:00 a.m. on last Business Day prior to Release Term Start Date Evaluation Period begins at 10:00 a.m. If no match is required, evaluation period ends and Award is posted by 11:00 a.m. When a match is required, the match is communicated by 11:00 a.m., match response occurs by 11:30 a.m., and the Award is posted by 12:00 Noon Contract is issued within one hour of the Award posting. Nomination is possible beginning at next available nomination cycle for effective date of the contract. Prearranged Biddable Releases (greater than 1 year) Offers should be tendered so that they can be posted by 9:00 a.m. on a Business Day, and tender deadline o cannot be less than the Submission date/time, and o cannot be less than the Rel Req Post Date/Time Bid period must be greater than or equal to three 9:00 a.m. to 10:00 a.m. time periods on consecutive Business Days Bid deadline is 10:00 a.m. on last Business Day prior to Release Term Start Date Evaluation Period begins at 10:00 a.m. If no match is required, evaluation period ends and Award is posted by 11:00 a.m. When a match is required, the match is communicated by 11:00 a.m., match response occurs by 11:30 a.m., and the Award is posted by 12:00 Noon. Contract is issued within one hour of the Award posting. Nomination is possible beginning at next available nomination cycle for effective date of the contract.

6 TIMELINE FOR CAPACITY RELEASES PAGE 4 Non-prearranged Biddable Releases (less than or equal to 1 year) Offers should be tendered so that they can be posted by 9:00 a.m. on a Business Day, and tender deadline o cannot be less than the Submission date/time, and o cannot be less than the Rel Req Post Date/Time Bid period must be greater than or equal to 1 hour Bid deadline is 10:00 a.m. on last Business Day prior to Release Term Start Date Evaluation Period begins at 10:00 a.m. Evaluation period ends and Award is posted by 11:00 a.m. Contract is issued within one hour of the Award posting Nomination is possible beginning at next available nomination cycle for effective date of the contract Non-prearranged Biddable Releases (greater than 1 year) Offers should be tendered so that they can be posted by 9:00 a.m. on a Business Day, and tender deadline o cannot be less than the Submission date/time, and o cannot be less than the Rel Req Post Date/Time Bid period must be greater than or equal to three 9:00 a.m. to 10:00 a.m. time periods on consecutive Business Days Bid deadline is 10:00 a.m. on last Business Day prior to Release Term Start Date Evaluation Period begins at 10:00 a.m. Evaluation period ends and Award is posted by 11:00 a.m. Contract is issued within one hour of the Award posting. Nomination is possible beginning at next available nomination cycle for effective date of the contract.

7 RETRIEVING OFFERS PAGE 5 In IOL, the Capacity Release Offers screen allows you to retrieve offers added by any shipper. In order to start the process, follow the instructions below: Login to IOL Select the Capacity Release menu item Select the Offers sub-menu item under Capacity Release You should come to a screen that looks like the following: The Company Representing and Releaser Name fields will default to your Shipper Name.

8 RETRIEVING OFFERS PAGE 6 There are two options for retrieving offers: - RETRIEVE BY: You can retrieve an offer based on a combination of the following criteria: Releaser Name Selectable drop-down defaults to your Shipper Name. To view offers from all shippers, select ALL. To view offers from a specific Shipper, scroll down the alphabetic list and click on the desired Shipper name. Offer Starts On or After Date field defaults to the first of the next month. You may change the start date using the calendar function, or overtype the date field. Time: The default is 09:00 Offer Status Selectable drop-down defaults to ALL. You may select offers with a specific status from the drop-down list. Business Day Indicator - Selectable drop-down defaults to ALL. You may select Yes for offers recallable on a business day, or No for offers that are not subject to being recalled on a business day. Biddable deal? Selectable drop-down defaults to ALL. You may select Yes for biddable offers, or No for non-biddable offers. Recall Notification Period Indicator - Selectable drop-down defaults to ALL. You may select offers that were specified to be recallable in any of the following cycles: Timely, Early Evening, Evening, Intraday1, Intraday2, or Intraday3. Not Applicable is also a choice, which will yield a list of offers that were identified as being not recallable. Sort By Selectable drop-down defaults to Release Term Start Date. This puts the most current offers at the top of the list. The other options available in the drop-down are: Release Term End Date, Offer Number, and Biddable Deal. - OR: If there is a specific offer you are interested in viewing and you know the offer number, enter it in the Offer Number field. After you enter the information for either option, click the Retrieve button. The grid at the bottom section of the screen will populate with the results meeting the search criteria you specified.

9 SORTING OFFERS PAGE 7 If you retrieve a large number of offers, the list can be sorted. One option is to click on column headings. Clicking once on a column heading will display the data in ascending sequence. Clicking on it again will display the data in descending sequence. The following column headings are available for this option: Offer No, Rel St Date, Rel End Date, Max Offer Qty-K, Offer Status, Biddable Deal?, and Location Zone. An enhanced sorting option is also available allowing multiple sorts to be applied to the data. For example, let s say you want to sort the data by Releaser Name, Rel St Date, and Bidder Name. Place the mouse on the Releaser Name column heading, left mouse click and hold, then drag it into the Sorting order area above the grid. Repeat this for Rel St Date and Bidder Name.

10 SORTING OFFERS PAGE 8 The default display sequence is ascending for each column selected. To modify the sequence to descending, click once on the column heading box situated in the Sorting order section above the grid. Following our example, if you click on Rel St Date, you will notice that the Rel St Date column now displays in descending sequence. The sequence of the other columns is not affected. If you want to remove one of the sort columns from the Sorting order section, click on the down arrow displayed to the right of the column heading name. Two options are listed: Remove and Remove All. Click on Remove to remove that column from the Sorting order section. If you want to remove all sort columns from the Sorting order section click on the down arrow, and then select Remove All.

11 RELEASING SHIPPERS ADDING AN OFFER PAGE 9 Iroquois has developed a simple to use Offer Wizard to assist Releasing Shippers in creating proper Capacity Release Offers. The Offer Wizard breaks the offer into six easy steps. In order to start the process, follow the instructions below: Login to IOL Select the Capacity Release menu item Select the Offers sub-menu item under Capacity Release You should come to a screen that looks like the following: Once you have verified/selected the proper Company Representing and Releaser Name, select the Add Offer button to begin the wizard. To utilize the Copy Offer function, see page 19 for the instructions.

12 RELEASING SHIPPERS - THE OFFER WIZARD PAGE 10 Step 1 of Offer Wizard Contract and Offer Type There are several types of offers, as described on page 2 of this Training Guide. Releaser Name: Displays the company that is releasing capacity. Releaser Contract Number: A drop-down window of all firm contracts that the releasing company has in place with Iroquois. Deal Indicator: Offers can be either prearranged or open to all shippers for bidding: Prearranged Deal (biddable or non-biddable) Open Bidding Repl SR Role Ind (Replacement Shipper Role Indicator): If the Deal Indicator is Prearranged Deal, then you must select one of the following three Repl SR Role Ind options ( Other is the default): AMA - Asset Management Agreement RCP - Retail Choice Program OTH - Other (neither part of an AMA nor associated with a state-mandated RCP) If the deal indicator is Open Bidding, the Repl SR Role Ind must be Other. Permanent Release (Perm Rel): No or Yes (No is the default) This indicates whether the Releasing Shipper wishes to release the capacity permanently. A permanent release essentially transfers the contractual rights held with Iroquois from one shipper to another, but is subject to the potential Replacement Shipper being creditworthy. For all permanent releases, the Releasing Shipper must notify Iroquois prior to posting its capacity release offer. Index Based Release (IBR Ind): No or Yes (No is the default) After you enter and verify all information, select Next to go to Step 2 of the Wizard.

13 RELEASING SHIPPERS THE OFFER WIZARD PAGE 11 Step 2 of Offer Wizard Terms Release Term Start Date: This field indicates the date and time that the offer will begin. It defaults to the beginning of the following month. Release Term End Date: This field indicates the date and time that the offer will end. It defaults to the date in which the releasing contract terminates. Rel Req Post Date/Time: This field defaults to the current date and time (Central Clock Time). Bid Period Start Date/Time and Bid Period End Date/Time: These fields apply to biddable offers, default to the date and time (Central Clock Time) applicable to the type of offer per NAESB WGQ Version 3.0 standards, and cannot be modified after exiting the offer wizard. Please refer to pages 3 and 4 of this Training Guide for the timelines associated with different types of biddable offers. If you want a different biddable start date/time other than the default, please specify a bid period start date and time greater than the submission date and time (i.e. when Submit is selected in the summary screen of the Tabs after exiting the wizard). Similarly, if you want a different biddable end date/time other than the default, please specify a bid period end date and time at least 1 hour greater than the bid period start date and time, and remember that bids for offers greater than 1 year must span three 9:00 a.m.-10:00 a.m. time periods on consecutive business days. In this step, you may see one or more informational pop-ups either alerting you of actions taken by the system, or asking you if you want to make the offer biddable. Examples: After you enter and verify all information, select Next to go to Step 3 of the Wizard.

14 RELEASING SHIPPERS THE OFFER WIZARD PAGE 12 Step 3 of Offer Wizard Locations and Quantity Receipt Location: This field defaults to the primary receipt point of the releasing contract. Delivery Location: This field defaults to the primary delivery point of the releasing contract. Max Offer Qty-K: This field defaults to blank. A quantity must be entered in this field. If it is not entered, a pop-up will be displayed requesting you to enter a value. The quantity entered cannot exceed the Maximum Daily Quantity (MDQ) of the releasing contract. IMPORTANT INFORMATION TO NOTE: A Releasing Shipper must be aware of any other previous releases that would affect the available MDQ. If a quantity is entered that exceeds the MDQ of the releasing contract, a pop-up will be displayed alerting you of that, and requesting you to enter a valid value. After you enter and verify all information, select Next to go to Step 4 of the Wizard.

15 RELEASING SHIPPERS THE OFFER WIZARD PAGE 13 Step 4 of Offer Wizard Releaser Contact Information This screen will auto-populate with the Releasing Shipper s contact information (for the user who is logged in). IMPORTANT INFORMATION TO NOTE: These fields are all modifiable. Due to IOL notification s which will be generated later, please ensure that the address is valid and entered correctly. After you enter and verify all information, select Next to go to Step 5 of the Wizard.

16 RELEASING SHIPPERS THE OFFER WIZARD PAGE 14 Step 5 of Offer Wizard Conditions Recall/Reput Desc: A drop-down with four choices: Capacity not recallable default Capacity recallable by Releasing Shipper and reputtable at the option of the Replacement Shipper Capacity recallable and reput must be taken by Replacement Shipper Capacity recallable but not reputtable Recall/Reput Terms: Terms under which capacity can be recalled. This is automatically updated to match the default Timely Cycle after a selection is made for the Recall/Reput Desc field. Recall Notification Period Indicator: The options are: Timely (default) A recall that is to be effective for a given gas day must be done no later than 8 a.m. Central Clock Time the prior day. Early Evening A recall that is to be effective for a given gas day must be done no later than 3 p.m. Central Clock Time the prior day. Evening A recall that is to be effective for a given gas day must be done no later than 5 p.m. Central Clock Time the prior day. Intraday 1 A recall that is to be effective for a given gas day must be done no later than 7 a.m. Central Clock Time during that gas day. Intraday 2 A recall that is to be effective for a given gas day must be done no later than 12:00 Noon Central Clock Time during that gas day. Intraday 3 - A recall that is to be effective for a given gas day must be done no later than 4:00 p.m. Central Clock Time during that gas day. Not Applicable Choosing a recall cycle other than Timely indicates that a recall can be done for any cycle earlier than and including the recall cycle chosen. The Recall/Reput Terms field will be automatically refreshed based on Recall Notification Period Indicator selected. Business Day Indicator: The options are: No (default) means that a recall can be done on any day of the week. Yes means that a recall must occur on a business day. Terms/Notes - AMA: Must be entered if this deal is done as part of an AMA, otherwise, non-enterable. After you enter and verify all information, select Next to go to Step 6 of the Wizard.

17 RELEASING SHIPPERS THE OFFER WIZARD PAGE 15 Step 6 of Offer Wizard Prearranged Bid (applicable only for prearranged offers) Bidder Name: List of Shippers who have an executed Blanket Capacity Replacement Contract. Bidder Contact (First Name): List of contact names for selected Shipper. By selecting First Name, the Last Name, Bidder Phone, Ext, Bidder Fax, and Bidder fields are autopopulated. Bidder Phone is required. Bidder should contain a valid address due to IOL notification s which will be generated later. Rel Acpt Bid Basis Desc: Default is Absolute dollars and cents. The other choice is Percent of maximum tariff rate. Mkt-Based Rate Ind: This field defaults to No. Res Rate Basis Desc: Default is Per Month. The other choice is Per Day, which applies only when you select Absolute dollars and cents. Pct Max Trf Rate Bid: Default is Prearranged Bidder is bidding Max Rate. If you chose the Percentage option, you may change this when setting up a biddable prearranged deal. Modifying the value here will automatically update the Rate Bid fields below. Please verify the percentage and associated rate before you continue. Rate Bid (Monthly): Default is applicable Iroquois FERC-approved Max Tariff Rate. If you chose the Absolute dollars option and Per Month, you may change the Rate Bid (Monthly) field. Modifying the value here will automatically calculate the equivalent Rate Bid (Daily) in the field below it and the associated Percentage field. Please verify the rate before you continue. Rate Bid (Daily): If you chose the Absolute dollars option and Per Day, you may change the Rate Bid (Daily) field. Modifying the value here will automatically calculate the equivalent Rate Bid (Monthly) in the field above it and the associated Percentage field. Please verify the rate before you continue. Affiliate Indicator: Default is unchecked (blank). Check Releaser if the Prearranged Bidder is affiliated with the Releasing Shipper and/or check Pipeline if the Prearranged Bidder is affiliated with Iroquois. Select Finish to exit the Wizard and display the Offer Detail Tabs.

18 RELEASING SHIPPERS - THE OFFER DETAIL TABS PAGE 16 After the Offer Wizard is completed The Offer Detail is displayed in several tabs. Review each one to double check for accuracy before selecting the Submit button. When you add a biddable offer, clicking Submit will submit the offer, close the Offer Detail Tabs, and re-display the Offers screen with the newly added offer added to the list.

19 RELEASING SHIPPERS - THE OFFER DETAIL TABS PAGE 17 When you add a non-biddable offer, clicking Submit will submit the offer, and initiate the awarding process. Clicking OK will close the Offer Detail Tabs, and re-display the Offers screen with the newly added offer added to the list.

20 RELEASING SHIPPERS ADDED OFFERS PAGE 18 After the new Offer is submitted/awarded The Offers Screen will display the newly added offer in the grid. IMPORTANT INFORMATION TO NOTE: If the Releasing Shipper has made a mistake, the offer may be deleted while it is in SAVED status. Once an offer is submitted, no changes can be made, unless the offer is WITHDRAWN and then the Releasing Shipper would need to enter a new offer.

21 RELEASING SHIPPERS - COPY OFFER PAGE 19 Sometimes, if you are adding new offers that are very similar to ones you have added in the past, you may wish to use information from those previous offers. In this case, you may opt to use the Copy Offer function. To do this, on the Offers screen, first retrieve the offer(s) you have made in the past. Then, to copy an offer, highlight it on the grid and select Copy Offer. The next screen displays information about the previous offer and gives you an opportunity to review it and update some information.

22 RELEASING SHIPPERS - COPY OFFER PAGE 20 Select Copy and Continue. Please note that Copy and Save is only available if the original offer has a Repl SR Role Ind of Other. We highly recommend you select Copy and Continue. When you do so, you will be directed to the capacity release Offer Wizard. However, all information will be auto populated, so please ensure that you enter and verify the accuracy of all data, especially the terms, location, quantity, and rate applicable to the new offer, as you go through the steps of the wizard. Always check the Rate field(s) in the Wizard to ensure the offer is being added with the desired rate.

23 PAGE 21 RELEASING SHIPPERS - COPY OFFER Please note: If you are copying an older offer, which may have been added prior to the maximum rates being changed, you will see a pop-up similar to the one shown here, informing you of the new FERC max rate in effect: After you click OK, the Copy Offer screen remains open, and you can update the terms and quantity fields, before you click on Copy and Continue. The Offer Wizard will then be displayed, allowing you to update more fields. When you get to step 6, for prearranged offers, the older rates will be displayed in the Rates fields and the Pct Max Trf Rate Bid field will display the percentage based on the current rates. If you wish to release this offer with the rate shown, click Finish, otherwise click in the Rate fields to update the rate.

24 OFFER STATUS PAGE 22 Awarded: The offer was awarded. Awarded (with Recall Date filled in): A Releasing Shipper may create an offer that spans several months or to the end of the releasing contract term. When the offer is created, in the Conditions section, they may choose one of the following options. Capacity not recallable Capacity Recallable by Releasing Shipper and reputtable at the option of the Replacement Shipper Capacity Recallable and reput must be taken by Replacement Shipper Capacity Recallable but not Reputable In order for an offer to be recalled, it must be tagged as recallable and the Release Term Start Date/Time must have passed. A recall date is required to be entered when recalling an offer. Currently, when an offer is recalled, the Status remains Awarded and the Recall Date column is populated with the effective date of the recall. Award Withdrawn: The award to an offer has been withdrawn. Awards to offers can only be withdrawn after they are awarded and prior to the offer start date. Cancelled: When a non-biddable offer is initiated and submitted, but not awarded when asked if you want to award the offer, the offer will appear in the Offers screen with the status of Cancelled. Rejected: An offer will be rejected if invalid or incomplete information was entered. Saved: A Releasing Shipper creates an offer using the offer wizard, but hasn t submitted it yet. It remains in saved status until it is submitted. This status allows a customer to review the offer and make adjustments where necessary. There are limitations as to which fields can be changed. If too many mistakes are made by the Releasing Shipper, they can delete the offer and create a new one. Offers in saved status may be deleted by the Releasing Shipper or by the pipeline. Submitted: This status is assigned when the Releasing Shipper submits a biddable offer. As soon as the submit button is pressed, the status changes to Submitted. Withdrawn: After an offer is submitted it may be withdrawn by the Releasing Shipper, but only if the Bid Period End Date has not passed and there have been no bids received.

25 PAGE 23 REPLACEMENT SHIPPERS ROLES AND RESPONSIBILITIES Through Iroquois Capacity Release IOL program, the role and responsibilities of the Replacement Shipper are very simple. For prearranged capacity release offers, the Replacement Shipper will receive an notifying them that they are a party to an offer that has been submitted, awarded, recalled, or withdrawn. Iroquois capacity release program in IOL does not require the Prearranged Replacement Shipper to accept the release. The Replacement Shipper is responsible for having credit and an Iroquois Blanket Capacity Replacement Contract in place. This is a necessary tool for nominating your gas. Request a Blanket Capacity Replacement Contract. When you execute a Blanket Capacity Replacement Contract, Iroquois issues the four standard accounts listed below. These accounts are used for all Future Capacity Release nominations. However, if circumstances dictate, it is possible you may be assigned Capacity Release accounts ending in 65 to 69. Account # Zone Path XXXX-61 1 Waddington to Wright XXXX-62 2 Wright to South Commack XXXX-63 1 to 2 Waddington to South Commack XXXX-64 Eastchester Receipt of Brookfield or delivery point of Hunts Point *XXXX = Shipper Account Number (SAN) is assigned to each Iroquois shipper

26 REPLACEMENT SHIPPERS ADDING A BID PAGE 24 Only Replacement Shippers who have a Blanket Capacity Replacement Contract and are creditworthy will be able to bid on biddable offers. On the Offers or Bids screen in IOL, customers who are not approved bidders will have the following red text on the bottom of the screen: In order to bid on capacity from a firm shipper, you must have a blanket replacement contract and meet the creditworthiness requirements of Iroquois' FERC Gas Tariff. To obtain this contract, please call Contract Administration at If you meet all criteria for bidding on offers, retrieve offers on the Offers or Bids screen, highlight the offer to which you wish to add a bid, and click on the Add Bid button. The button is activated during the bid period only.

27 REPLACEMENT SHIPPERS - THE BID WIZARD PAGE 25 Iroquois has developed a simple to use Bid Wizard to assist Replacement Shippers in adding proper Capacity Release Bids. The Bid Wizard breaks the bid process up into five easy steps. From the IOL Capacity Release Offers or Bids screen, retrieve a biddable offer and select Add Bid to initiate the Bid Wizard. Step 1 of Bid Wizard Bid Detail Releaser Name, Bidder Name, Bid Period End Date/Time, and Bid Eval Ind Desc are auto populated. The Bidder Lesser Quantity Indicator can be checked if you are willing to accept a quantity less than what you will specify in the Bid Quantity field later. The Bidder s Contingency Indicator can be checked if your bid has contingency terms. Select Next to go to Step 2 of the Bid Wizard.

28 REPLACEMENT SHIPPERS THE BID WIZARD PAGE 26 Step 2 of Bid Wizard Rates and Terms Most of the information is auto populated. If the release term is less than or equal to one year, the bidder may enter a bid greater than or equal to either the Minimum Acceptable Rate (Monthly) or Minimum Acceptable Percentage of Maximum Tariff Rate, as applicable. If the Releasing Shipper allowed a lower percent in the offer and the release term was greater than one year, the bidder may enter a bid within the minimum and maximum acceptable percentage. If the Releasing Shipper chose a lower dollar amount in the offer and the release term was greater than one year, the bidder may enter a dollar amount within the minimum and maximum acceptable rate. Enter the rate or percentage, as applicable, and select Next to go to Step 3 of the Bid Wizard. Step 3 of Bid Wizard Location / Quantity The Bid Qty-K and Bid Min Qty-K fields must be populated. Currently, the Bidder must select the same quantity as in Max Offer Qty-K, as IOL does not allow the bidder to choose a lesser quantity even if they select the indicator on Step 1 of the wizard. A validation stops you from choosing a lower quantity. Enter the quantities and select Next to go to Step 4 of the Bid Wizard.

29 REPLACEMENT SHIPPERS THE BID WIZARD PAGE 27 Step 4 of Bid Wizard - Conditions Stand-alone Bid Indicator: This indicator tells bidders whether the offer is a stand-alone offer and may be bid upon separately. If this indicator is checked, no stand alone bid terms and conditions can be entered. Not a Stand-alone Bid Terms and Conditions: This field is only enterable when the bid is not a Stand Alone Bid. Releasing Shipper s Contingency Indicator: This field is driven by the Releasing Shipper selecting this on the offer. This indicator is on the Summary tab when you view the offer. If this indicator is checked, it tells the bidders whether the Releasing Shipper will accept bids which are contingent from the bidder s point of view. Business Day Indicator: Leave blank (This field should be removed). Recall/Reput Desc: This pulls from the Releasing Shipper s offer. Recall Notification Period Indicator: This pulls from the Releasing Shipper s offer. Select Next to go to Step 5 of the Bid Wizard.

30 REPLACEMENT SHIPPERS - THE BID WIZARD PAGE 28 Step 5 of Bid Wizard Bidder Contact It is important for the Bidder to enter their contact information correctly. The Affiliate Indicator is only checked by the Bidder when they are an affiliate of the Releasing Shipper or the Pipeline. IMPORTANT INFORMATION TO NOTE: All bids must provide the following information. 1. Bidder s Contact Information including name, phone, fax and The maximum rate bidder is willing to pay. If offer is discounted, then enter the percentage of maximum rate bid in Step Enter the quantity in Step If there are two or more successful bidders, Iroquois must pro-rate the capacity. 5. Bidder s conditions See step 4. Once a bid is submitted, that bid shall be binding until Iroquois receives notification of withdrawal. Once the bidding period closes, bids shall be binding until Iroquois selects a successful bidder, or if no bids satisfy the minimum terms specified in the release, or contingencies have been eliminated. A bidder may withdraw and submit a higher bid before the bid period closes. No lower bids are accepted. Select Finish to exit the Wizard and review all bid information prior to submitting the bid.

31 REPLACEMENT SHIPPERS - THE BID DETAIL TABS PAGE 29 After the Bid Wizard is completed The Bid Detail is displayed in several tabs. Review each one to double check for accuracy before selecting the Submit button. IMPORTANT INFORMATION TO NOTE: If the Replacement Shipper has made a mistake, the bid may be deleted while it is in SAVED status. Once a bid is submitted, no changes can be made, unless the bid is WITHDRAWN and then the Replacement Shipper would need to enter a new bid.

32 GLOSSARY PAGE 30 Asset Management Agreement ( AMA ): An agreement between two parties where the Asset Manager is exempt from bidding under a prearranged capacity release offer, wherein such offer contains the condition that the Releasing Shipper may call upon the Replacement Shipper to deliver to, or purchase from, the Releasing Shipper a volume of gas up to 100% of the daily contract demand of the released transportation capacity for a specific period of time. An AMA capacity release can be re-released to another shipper and such a re-release can be categorized as an AMA capacity release. AMA capacity releases may be biddable. Capacity Release Offer Detail Report ( CROR ): A report generated by Iroquois' EBB outlining the details of a specific release of capacity. Prearranged Replacement Shipper The term Prearranged Replacement Shipper shall mean a Replacement Shipper that has reached an agreement with a Releasing Shipper to acquire its released capacity prior to the time that the Releasing Shipper submits its Release Notice to Transporter in accordance with the provisions of Section 28 of Iroquois Tariff. Release Notice: A notice that a Releasing Shipper provides to the Transporter, in accordance with the provisions of Section 28.6 of Iroquois Tariff. This notice is posted through the Iroquois OnLine (IOL) EBB system through the submission of a valid Capacity Release Offer. Releasing Shipper: Any Shipper who has executed a Gas Transportation Contract for Firm Reserved Service with Iroquois and elects to release, on a temporary or permanent basis, all or a portion of its firm capacity rights to a Replacement Shipper. Releasing Shippers need to execute a Blanket Gas Transportation Contract for Firm Reserved Service with Replacement Shipper. Replacement Shipper: Any Shipper who has executed a Blanket Gas Transportation Contract for Firm Reserved Service with Replacement Shipper and elects to acquire capacity rights from a Releasing Shipper. Retail Choice Program ( RCP ): A program where an LDC is required to release capacity to marketer(s) to provide a competitive market pursuant to a state mandate. A RCP capacity release can be rereleased to another shipper. RCP capacity releases may be biddable.

33 FREQUENTLY ASKED QUESTIONS PAGE 31 Do I need to accept my Capacity Release? No, Iroquois capacity release program in IOL does not require a Prearranged Replacement Shipper to accept a release. If I am the Prearranged Replacement Shipper on a biddable release, do I need to submit a bid? No. Prearranged Replacement Shippers should not enter a bid. The capacity is automatically awarded to them, unless there is a higher bid. If there is a higher bid than the pre-arranged rate for an offer, both Releasing and Prearranged Replacement shippers are notified. The Prearranged Replacement Shipper has within 1 hour of the bid close to decide to either match the bid or pass. If they match the bid, the capacity is theirs. If not, the highest bidder is awarded the capacity. How do I know I have the capacity and it has been awarded? When the offer is awarded, an is sent to both the Releasing and the Replacement Shippers prearranged contacts listed in the offer. You can also check the status of the offer in the Offers screen at any time. How do I change the person that receives the capacity release confirmation s? The Releasing Shipper must be notified of the new contact; his/her contact information will then be used when adding future offers. How do I know what contract to nominate once capacity has been awarded to me? Check the Contract Reports screen in IOL. The Blanket Capacity Replacement Contract numbers end in 61 (zone 1), 62 (zone 2), 63 (zone 1 to 2), 64 (Eastchester), and 65 to 69 (All). Note: Set the Effective Date located in the upper right corner of the screen to the date the Capacity Release will be in effect.