LINK System Customer Interface. Capacity Release Offer

Transcription

1 Capacity Release Offer 1

2 Glossary Button Functionality Offer Terms Tab Offer Quantity Tab Offer Segments Tab Offers Locations Tab Offers Rates Tab Offers Contact Tab Offers Summary MapTab Offers Errors Tab Offers Negotiated Rate Tab 2

3 Create an Offer To create an offer, go to the Capacity Release menu tree, click on Offers, then Offer Maintenance. Click on the Rel K field and enter the contract from which capacity needs to be released. The asterisk next to a field indicates a lookup is available. 3

4 Create an Offer Double click on the Rel K data field to obtain the Contract/Deal List lookup screen. Enter data in filters across the top of the screen and click the Search button to compile a list of contracts. Then, click on the contract interested in creating the offer and press the Select button. 4

5 Create an Offer The contract data will populate for the Offer. The Rel St Date (Release Start Date), and Rel End Date (Release End Date) will default to the next month. The Rel St Date and Rel End Dates are editable if a different date is desired. The Capacity Release screen is setup in a tabular format utilizing tabs on one screen such as terms, quantity, rates, segments, locations, etc. The Terms tab will be displayed as the default tab for the Offer Maintenance screen. 5

6 Create an Offer Button Functionality Copy Allows a previously posted offer to be copied and used as a new offer. Withdraw Once an offer has been posted, it can be withdrawn as long as no valid bids have been submitted. Clear Replaces all editable fields with blanks or zeros and all previously entered data is wiped out. Save The offer is saved but not posted. Post The offer is submitted for system validations and made available for bidding. 6

7 Create an Offer Terms Tab Recall/Reput Indicator tells bidders whether the offer can be Recalled and/or Reput subsequent to the award of capacity. The Recall / Reput field will default to Not Recallable but when selecting the arrow down other options are displayed. Recall If a capacity release is recallable the releasing shipper can take (recall) released capacity from the replacement shipper based on the notification periods specified in the offer (see next page). Reput If a capacity release is Reputtable (Reputtable or Optional Reput) the releasing shipper can return capacity previously recalled. In the case of Optional Reput, the Replacement shipper must approve the Reput. NO (Not Recallable) - Capacity is not recallable. RD/RR (Recallable and Reputtable) Releasing Shipper can recall the capacity from and reput it to the replacement shipper. YD/YR (Recallable but not Reputtable) Releasing Shipper can recall but not reput the capacity. OD/OR (Recallable and Optional Reput) Releasing Shipper can recall the capacity but the Replacement Shipper has the option to decline the Reput. 7

8 Create an Offer Terms Tab Recall/Reput Terms Comments are required when a customer makes a release recallable. These comments are displayed in the center of the Recall/Reput Terms screen. In addition, when a replacement customer re-releases capacity, the top portion displays the original releaser s comments. The timing of the recalls are determined by the notification period(s). Selecting All allows the releasing shipper to recall the capacity at any one of the notification periods. Selecting only Recall Notify Timely means the releasing shipper cannot recall after the timely deadline. Selecting Business day indicator limits recall notifications to be sent on business days only. 8

9 Create an Offer Terms Tab Terms Tab Terms That Require Comments and Notes When the releasing party enters comments in one of the below fields, the posting process will be delayed up to 24 hours for comments to be evaluated and to ensure the comments conform to the pipeline tariff/ferc regulations. Bid-T-brk Rel SR Contng Stand-aln Offer Terms/Notes Bid Eval Ind Desc-Other Method Repl SR Role Ind (AMA Comments), If comments do not conform to the pipeline s tariff, or if the pipeline s Regulatory Group determines that they violate FERC regulations then the offer will be rejected. 9

10 Create an Offer Terms Tab Bid T-brk (Bid Tie Breaking Method) The Bid T-brk indicator allows the releasing customer to specify a choice of methods for awarding capacity in case of tied bids. The Bid T-brk indicator will default to PT(Tariff reference). This means the Releaser wants to use the pipeline method for determining the winner when there is a tie among potential winning bidders. For the default, the tariff reference will appear automatically in the Bid Tie Breaking Method Comments screen. If there is more than one bidder with the same highest bid value, the first bidder to post will be awarded the released capacity. If the Releaser wants to use its own tie-break method, Click on the down arrow, select RD (Releaser s Comments) and input the method used to determine a tie-break within the related Bid Tie Breaking Method Comments popup as shown below. 10

11 Create an Offer Terms Tab Rel SR Contng (Release Service Requester Contingency) The Rel SR Contng indicator tells bidders that contingent bids will be accepted if the indicator is changed to Y for Yes. If the indicator remains as the default which is N for No then no contingent bids will be accepted. The Releasing Shipper can state the type of contingency that will be accepted in the comments field. 11

12 Create an Offer Terms Tab Stand-Aln Offer (Stand Alone Offer) The Stand-aln indicator tells bidders if the offer is a stand-alone offer and that it may be bid on separately. If the offer is not stand alone, the bidder must bid on and win other offers in order to be the winner of this offer. The indicator will default to Y-Yes and indicates that this offer stands alone and there are no other offers the bidder must bid on and win to be the winner of this offer. If there are additional offers to be bid on, Click on the down arrow besides the stand alone indicator, and select N-No. The releaser must input the same Stand-Alone comments within all applicable offers. Click on the OK button. 12

13 Create an Offer Terms Tab Terms/Notes The Terms/Notes indicator allows releasing customers to provide additional terms related to the offer, and will default to N-No. Click on the down arrow and select Y-Yes to add miscellaneous comments in the related Term/Notes popup. Click on the OK button If there are terms that have been pre-approved by Enbridge, they will display in the Select preapproved Terms dropdown. If a pre-approved terms option is selected, this will bypass the 24 hour internal approval period. 13

14 Create an Offer Terms Tab Bid Eval Ind Desc (Bid Evaluation Indicator Description) The Bid Eval Ind Desc communicates to bidders how bids will be evaluated for an offer. There are four ways in which the LINK system can evaluate a bid. These include Net Revenue Present Value Highest Rate Other Method. The indicator is defaulted to Net Revenue. This option validates the winning bid using a calculation of (Rate * Qty * Term). The Present Value option validates the winning bid based on a calculation of: (Rate * Qty) * 1 (1+i) n i i = interest rate n = number of days in release duration Highest Rate validates the winning bid based on the highest rate. When Other Method is selected, comments regarding how bids are to be evaluated are required in the related Bid Evaluation Method Comments box. 14

15 Create an Offer Terms Tab RAPP Desc (Rights to Amend Primary Points) RAPP indicates if the Releasing Shipper will allow the replacement shipper to amend primary points on the replacement contract for the term of the release. The Releasing Shipper can select from the options below: NO (Primary Points can not be changed ) YES, conditional (Initial replacement shipper only) If the capacity is re-released by the first replacement shipper, the subsequent party (or parties) would not be allowed to change primary points. The RAPP Terms popup will require comments. YES, unconditional (All replacement shipper(s)) - Replacement Shippers can request that the replacement contract they acquire be amended to change primary points. The RAPP Terms popup will require comments. 15

16 Create an Offer Terms Tab ORDER 712 As part of the Order 712 which took effect on 07/30/2008, the following two options were added: 1) AMA (Asset Manager Arrangement), and 2) RCP (Retail Choice Program). These options allow capacity release transactions to be exempt from bidding requirements. Replacement Shipper Role Indicator AMA (Asset Management Arrangements) A signed agreement between two parties where one party takes over the operation or management of another parties assets. The agreement will state the quantity of obligation and duration which must be entered to qualify under FERC Order 712 rules. AMA Obligation Quantity along with terms are required when flagging AMA indicator to Y. 16

17 Create an Offer Terms Tab ORDER 712 (con t) If the obligation is the lesser of 5 months or the term of the release, the entire term of the release will be the delivery obligation period. If the release is longer than 5 months, the customer must specify the period of the delivery obligation. An example of a release with a term for 1 year and the delivery obligation for the minimum of 5 months, the customer should state that the delivery obligation is for the period of 5 months and specify time frame in months and days (ex: for a one year release that is from January 1 thru December 31, the delivery obligation is for 5 months beginning on January 1 and ending May 31). RCP (Retail Choice Program) A program setup by a governing body in the releasing shipper s home state that requires the shipper to release transportation and/or storage capacity to marketers doing business in their service area, The Retail Choice Program does not require terms or comments. Storage Inventory Obligation The releasing shipper is allowed to tie storage inventory to a release of storage capacity. The replacement shipper will be allowed to take the inventory or return inventory according to the provisions of how the release is set up. 17

18 Create an Offer Terms Tab Perm Rel (Permanent Release) A Perm Rel is where the releasing party desires to permanently release a portion of or all of its firm capacity. However, a Perm Release requires Enbridge s Marketing, Regulatory, Legal, Contracts, Credit, and LINK Group departments involvement so all parties considering a permanent release needs to contact their Enbridge Marketing Account Manager before hand. If 100% of the contract is released, the releasing customer s contract is terminated effective the start date of the new release. The Replacement Shipper will receive a new source contract. Note: Only original contracts that do not have a nomination or an active awarded capacity release can be permanently released The Perm Rel indicator tells bidders whether the offer is being permanently released. To create a permanent release, Click on the down arrow beside the Perm Rel indicator and select Y-Yes. An ATTENTION dialog box will inform you that this is a permanent release; Click on OK to continue or Cancel if it is not a permanent release. When the Perm Rel indicator is selected, the Rel End Date will automatically populate to the end date of the releasing contract. 18

19 Create an Offer Terms Tab Rel Acpt Bid Basis Desc (Releaser Acceptable Bidding Basis Description) Rel Acpt Bid Basis Description states that the releaser accepts bids in terms of one of the following options below: Absolute Dollars and Cents- the rate related to this release will only change if the max tariff rate is reduced below the released rate. The replacement shipper will be billed at the reduced rate. Percentage of Max Rate- shipper will be billed at the percentage of max rate on the bid applied against the current max rate for the billing period. IBR Formula-Diff, IBR Formula-Percent, and IBR Rate Floor-Diff are options to set rates based on a price index for example such as Platt s Gas Daily. 19

20 Create an Offer Terms Tab All Re-rel (Allowable Re-Release) The All Re-Rel indicator controls the right of the replacement shipper to re-release capacity. The All Re-Rel indicator will default to Y-Yes which means the Releaser will allow the replacement shipper to re-release the capacity. To prevent the replacement customer from re-releasing capacity, Click on the down arrow and select N-No. Prev Rel (Previously Released) The Prev Rel indicator shows whether the releasing contract is a replacement contract or an original. This field is populated by the system and is not updatable. 20

21 Create an Offer Terms Tab Prearranged Bidder vs. Non-Prearranged Bidder Prearranged Offer The Releasing Shipper has entered into a pre-arranged deal with a Replacement Shipper to acquire capacity. Offers can be biddable or non- biddable. Non-prearranged Offer A non-prearranged offer is where the Releasing Shipper has not identified a Replacement Shipper to acquire the capacity. Offers without a pre-arranged party are always biddable. Bid Deal (Biddable Deal) The Bid Deal indicator communicates to bidders whether the offer is biddable or non-biddable. The Bid Deal indicator will default to 03 (Y)-Yes, meaning the offer is biddable. A releaser may also prearrange an offer and have it available for bids. When the Bidder Prop (name) is entered the Bid Deal indicator default will change to 02(N)-No. Prearr Deal (Prearrange Deal) This indicator will default to 2(No) and is not updateable. The LINK system will automatically display 1 (Yes) when a Bidder Prop is identified. Bidder Prop/Name; Bidder To input a Bidder Name, enter the abbreviation of the Bidder in the Bidder Prop field or use the Pre-Approved Bidders List lookup. This is also known as the prearranged party. A pre-arranged offer may or may not be biddable. The Bidder Name, Bidder, is the Replacement Shipper identified to acquire capacity, automatically updated based on Bidder Prop entry. Prearr Bid Id (Prearrange Bid ID) This is the Bid # for the Bid that is automatically set up for the prearranged party to confirm. This ID # will appear in the field when the offer is saved or posted. 21

22 Create an Offer Terms Tab Bidder Name Lookup If the abbreviation is not known, Double Click in the Bidder Prop field to search on the Pre- Approved Bidder List. Under PAB Full Name, type in the first few characters of the company name. Click on the Search button to display the name. Click on the Select button to select the PAB Name. If a company name does not appear that means they have not executed an Umbrella Agreement (UMB) with the applicable business unit. 22

23 Create an Offer Terms Tab Affil (Affiliate) The Affil indicator specifies which parties to the transaction are affiliated. Note this is a mandatory field for purpose of Transactional Reporting. To select an affiliate, Click on the down arrow. BOTH indicates the releaser is an affiliate to the replacement shipper and the transportation service provider. NONE indicates the releaser is not an affiliate to the replacement shipper or the transportation service provider. RS indicates the releasing customer is an affiliate to the replacement shipper. TSP indicates the releasing customer is an affiliate to the transportation service provider. 23

24 Shorter Term Indicator: The Shorter Term indicator allows the releasing shipper to notify the transportation service provider that they will release the capacity for a duration less than the date range specified in the offer. While LINK defaults to N-No, the releasing shipper can change the indicator by selecting the dropdown. They have the option of choosing U-undisclosed which will allow the bidder to change the duration but will not show the releasing shipper s Minimum Term. If they choose Y-Yes, the bidder will be able see the releasing shipper s Minimum Term and change the duration. Min Term (Minimum Term): The Min Term field allows the releasing shipper to notify the transportation service provider of the minimum duration that they are willing to release the capacity. While LINK defaults to zero, the releasing shipper can change the min term to any duration less than the entire duration of the release. This field is only available when the Shorter Term indicator is set to Y or U and quantities are entered number of days. 24

25 Create an Offer Terms Tab Min Rate Discl (Minimum Rate Disclose Indicator) The Min Rate Discl indicator tells the transportation service provider whether the releaser wants to reveal minimum rates to perspective bidders. The Min Rate Discl indicator defaults to U-Undisclosed. To reveal the minimum rates of the offer, Click on the down arrow beside the Min Rate Discl indicator, and select D-Disclose. Note for TE only, if rates are disclosed, bidders are forced to bid on each zone. Otherwise, bidders can enter a rate into any zone. 25

26 Create an Offer Terms Tab Rate Form/Type Rate Form/Type indicates the form or type of rate. The Reservation which is the default is a daily conversion of the monthly rate (per zone) multiplied by the zone MDQs. The replacement customer is responsible for all MDQ reservations whether it is utilized or not. The Volumetric is another Rate Form/Type that can be used to setup a release. This is a daily conversion of the monthly rate multiplied by the release MDQ Volumes utilized. Disclose Contact The Disclose Contact indicator allows a customer to reserve the right to reveal or not reveal their contact information to bidders. The Disclose Contact indicator defaults to Y-Yes. Click on the down arrow and select N-No to conceal contact information. 26

27 Create an Offer Terms Tab Meas Basis Desc (Measurement Basis Description) Description of measurement basis of quantity. IBR Ind Indicator that displays if offer is an IBR rate or not. 27

28 Create an Offer Terms Tab Rel SR Less Qty (Releasing Service Requester Less Quantity indicator): The Rel SR Less Qty indicator allows the releasing shipper to indicate that they will release a portion of the capacity that they have posted for release. LINK defaults to U-Undisclosed which will allow the releaser to indicate a Min Qty in the offer and not disclose it to the bidder. It can be changed by clicking on the dropdown, if the releasing shipper chooses Y-Yes they can indicate a Min Qty in the capacity release and the bidder will see it in the Offer. They also have the option of choosing N-No which will remove the Min Qty field from the Quantity and Segments Tabs. Note: Prearranged Capacity Releases are defaulted to No are not allowed to release a quantity less than stated Maximum. 28

29 Create an Offer Terms Tab Extend Bid Period and Release Request Post Date The releaser may extend the normal bidding period for a capacity release offer. Extend Bid Period by day s defaults to zero (0). The releaser can extend the bid period by indicating the number of days in the field. The extend bid period cannot be greater than the Rel St Date. The releaser may submit an offer with a future post date and time that allows the offer to be in posted status but not viewable by others until the specified date and time. The Rel Req Post Date is the future time on which the Releaser requests posting of its offer. The field defaults to the current date in order to indicate this is a current offer. This date can not surpass the Rel St Date. Extend Match Period, Post Date and Time The Extend Match Period indicator will default to zero. The Releaser can enter a number of days to extend the period of time the prearranged bidder has to match a bid. The extended match period cannot exceed the offer expiration date. The new date will appear in the appropriate field. The Post date and time are the fields of when the offer was posted. 29

30 Create an Offer Quantity Tab 30

31 Create an Offer Quantity Tab QUANTITY TAB Quantities can be released on Texas Eastern in seven zones including STX, WLA, ELA, ETX, 1, 2, and 3 (all other business units just have one zone). STX has a 24 and 30 component. The MDQ for M1 and M2 Zones consist of the lower of: 1. The highest segment entitlement on the 24 plus the highest segment on the 30 (or the highest lateral segment) or 2. The releasing contract s MDQ. The MDQ for M3 is determined by the highest segment entitlement in the zone. Static and Seasonal releases can be created in the LINK system. Static releases are based on static contracts where the quantities do not change for the duration of the contract or the release. Seasonal releases are based on seasonal contracts where the quantities change for the duration of the contract and the release. Customers can also release a percentage of available quantities. When a Quantity Percent is released at the zone level, the same quantity percent is applied to available quantities on every segment within each released zone. Note: The segment quantities may be different than the zone quantities (See Segment Tab). 31

32 Create an Offer Quantity Tab Zone Definitions Loc Zn (Location Zone) is the abbreviation of the seven zones which the pipelines system is divided. STX, WLA, ELA, and ETX are located in the Access Area. M1, M2, and M3 are located in the Market Area. Access Area (referred to as the Supply Area or Production Area ) STX South Texas includes those facilities upstream of the suction side of Huntsville, Texas, and those facilities upstream of the suction outside of Vidor, Texas. WLA West Louisiana includes those facilities downstream of the suction side of Vidor, Texas, to the suction side of Opelousas, Louisiana. ELA East Louisiana includes those facilities downstream of the suction side of Opelousas, Louisiana, to the suction side of Kosciusko, Mississippi. ETX East Texas includes those facilities upstream of the suction side of Huntsville, Texas, and those facilities upstream of the suction side of Little Rock, Arkansas. Market Area Definitions (where gas is delivered to customers such as LDC s (Local Distribution Companies) and SCT s (Small Customers) via mainline or storage) Market Zone 1 includes those facilities downstream of the suction side of Little Rock, Arkansas on the 24, and facilities downstream of the suction side of Kosciusko, Mississippi on the 30, to the Illinois Indiana state line on the 24 and to the Tennessee Kentucky state line on the 30, respectively. Market Zone 2 indicates those facilities from the Illinois Indiana state line on the 24 and facilities from the Tennessee Kentucky state line on the 30 to the suction side of Delmont Station and to the discharge side of Station Site No. 22. Market Zone 3 includes facilities downstream of the suction side of Delmont Station and those facilities downstream of the discharge side of Station Site No. 22 to the end of the system. 32

33 Create an Offer Quantity Tab Quantity TAB Column Definitions SEL A column of boxes used to select a zone(s). To select all zones, Click on SEL in the column heading. An X will appear in the box beside each zone. To select one zone at a time, Click within the box beside the zone desire to release. Loc Zn (Location Zones) Identifies the zones including access and market area. Net Qty (Net Quantity) - The original contract quantity less prior awarded releases available for release at the time the offer is being created. In Process Qty - The quantity of any posted offers that have not been awarded. Qty Avail (Quantity Available) - The highest segment quantity available in the zone. Min Offer Qty-K (Minimum Offer Quantity) - The minimum released quantity acceptable to the releaser from a bidder under the specified contract. Max Offer Qty-K (Maximum Offer Quantity) - The maximum capacity released under the specified contract. Quantity Percent - The percentage applied to the quantity available for one or more zones. Min Apply Qty% (Minimum Apply Quantity %) is used to apply the quantity percentage for one or more zones to the Min and Max Offer Qty-K fields. Max Apply Qty% (Maximum Apply Quantity %) is used to apply the quantity percentage for one or more zones to the Max Offer Qty-K field only. 33

34 Create an Offer Quantity Tab Example (Release 10% Min Offer Qty and 20% Max Offer Qty) Click on the SEL column header to select all zones. When one or more zones are selected the Quantity Percent, Min Apply Qty% (Minimum Apply Quantity), and Max Apply Qty% (Maximum Apply Quantity) fields are activated. Enter 10 percent in the Quantity Percent field and choose Min Apply Qty % (Min Apply Qty % will populate both fields). After applying Min Offer Qty, Click on the SEL column header to select all the zones again. Enter 20 percent and choose Max Apply Qty % the screen will appear as below. Note: Prearranged Capacity Releases will only provide a Max Offer Qty option. 34

35 Create an Offer Quantity Tab Seasonal Release (AGT and TE Only) A seasonal release is a contract that has a different MDQ by the specific season. The different periods are: Peak, Summer, Fall Shoulder, and Spring Shoulder. 35

36 Create an Offer Quantity Tab MDQ Type The released entitlements on a seasonal contract varies for the duration of a release based on Seasonal Periods associated with the contract. Seasonal contracts on AGT and ETNG are released by a MDQ Type. Seasonal Billing/Seasonal MDQ - The replacement shipper is billed based on the different quantities in each seasonal periods released. The replacement shipper is billed per seasonal MDQ same as the original contract holder prior to the release. This is the default method for the offer screen. Peak Billing/Seasonal MDQ - The replacement shipper is billed based on the highest seasonal MDQ of seasons released. 36

37 Create an Offer Quantity Tab Seasonal Release Seasonal Periods The Seasonal Periods can be viewed from the Contract Maintenance screen in the LINK system. To access the Contract Maintenance screen, Click on Contracts from the menu tree and then Contract Maintenance. Enter the contract number in the Svc Req K field and Press Enter. Go to the Contract Quantity tab to view the MDQ for each Seasonal Period and their date ranges as shown below: 37

38 Create an Offer Quantity Tab Storage Releases TE has two storage release rate schedules (SS-1 and FSS-1). The SS-1 rate schedule can be released as transportation rights or storage rights. This rate schedule is known as bundled because it has a storage and transportation component. The user can release each separate component or bundled service by selecting the Assign Rate Sch of SS-1, FSS-1 or FT-1. The FSS-1 rate schedule only has a storage component to be released. When any portion of MSQ, MDIQ, or MDWQ is released, the system will populate the other quantities based on the ratio of the original contract. MSQ (Maximum Storage Quantity) is the maximum quantity of gas that a customer is allowed to have in storage at a given time. MDIQ (Maximum Daily Injection Quantity) is the maximum quantity that a customer can inject into a storage facility on a daily basis. MDWQ (Maximum Daily Withdrawal Quantity) is the maximum quantity that a customer can withdraw from a storage facility on a daily basis. 38

39 Create an Offer Quantity Tab Storage Releases - Storage Inventory Obligation The Storage Inventory Obligation popup will appear after entering a storage contract in the Offer Maintenance screen. If quantities are entered, comments and the term of the obligation are required. Quantity In Storage Capacity is returned to the releasing shipper with a specified amount of physical inventory at the end of the release period. Quantity Out The replacement shipper takes title to a specified amount of physical storage inventory from the releasing party on the release effective date. Releasing and replacement customers are responsible for transfer nominations to take care of the specified quantity. 39

40 Create an Offer Quantity Tab Quantity Types - Definitions The MSQ (Maximum Storage Quantity) is the maximum quantity of gas that a customer is allowed to have in storage at a given time. The MDIQ (Maximum Daily Injection Quantity) is the maximum quantity that a customer can inject into a storage facility on a daily basis. The MDWQ (Maximum Daily Withdrawal Quantity) is the maximum quantity that a customer can withdraw from a storage facility on a daily basis. Net Qty (Net Quantity) is the original contract quantity less any releases that have been awarded at the time the offer is being created. In Process Qty is the total quantity of posted offers that have not been awarded for a Qty Type. Qty Avail (Quantity Available) is contract quantities available minus any posted offers that have not yet been awarded at the time the offer is being created. 40

41 Create an Offer Segments Tab Segments Screen Layout 41

42 Create an Offer Segments Tab Segments Releasing Customers can also segment firm capacity in their Transportation Path through capacity release(s). The release cannot increase the total contract entitlement at any segment or point. This includes the MDQ, MDRO, MDDO, Zone Boundary Entry Quantity, or Zone Boundary Exit Quantity. A Customer may release a segment on the mainline or on a lateral and assign the Overlap Priority from the contract being released. Segments Apply Quantity Percentage or Quantity To apply a Quantity Percent across all segments, Click in the box beside the Segment being released or Click on SEL in the column heading to place an X in the Box for all Segments. Enter percentage in Quantity Percentage Box, Click on Apply Min Qty % to populate the release quantity into the Min Offer Qty-Loc (Minimum Offer Quantity) and Max Offer Qty-Loc (Maximum Offer Quantity) fields. Note: Prearranged Capacity Releases will only provide a Max Offer Qty option. Enter percentage and click on Apply Max Qty % to populate only Max Offer Qty-Loc. To apply a Quantity across all segments, Click in the box beside the Segment being released or Click on SEL in the column heading to place an X in the Box for all Segments. Enter quantity in the Quantity field, Click on Apply Min Qty to populate the release quantity into the Min Offer Qty-Loc and Max Offer Qty-Loc fields. Enter quantity in the Quantity field, and click on Apply Max Qty to populate only Max Offer Qty-Loc. Note: Prearranged Capacity Releases will only provide a Max Offer Qty option. 42

43 Create an Offer Segments Tab Segments Filtering Criteria A customer may select how to view segment entitlements. Entitlements can be filtered by Type, Loc Zn, Lateral Type, Diff Ind, and P/L Sect (Pipeline Section). Type On Texas Eastern customers can view segments by 24 inch pipeline 30 inch pipeline North of Berne South of Berne Entry/Exits All Zone Boundary Out of Balance Zone Boundaries. Type will default to All and will display segments on both 24 inch and 30 inch pipelines, and all Entry/Exits for the zones being released. 43

44 Create an Offer Segments Tab Segments Filtering Criteria (cont) Loc Zn - A customer may view and apply qty to segments by zones on Texas Eastern (STX, WLA, ELA, ETX, 1, 2, 3, Access, and Mktg). Segments can also be filtered and quantities applied by the Access Area or the Market Area. Loc Zn will default to ALL and initially will display all segments within all zones. Lateral Type A customer can view and assign segments by Lateral Types INC, NON, and N/A. Lateral type INC refers to incremental laterals Lateral type NON refers to non-incremental laterals Lateral type N/A refers to mainline segments. Diff Ind - The Diff Indicator identifies any quantity difference between segments across the path of the contract in the market area. P/L Sect (Pipeline Section) allows users to filter by engineering pipeline section 44

45 Create an Offer Segments Tab Segments Filtering Criteria (con t) Overlap Priority - Overlap Priority is used as a tie-breaking mechanism in the event that a Releasing Customer and/or Replacement Customer(s) submit overlapping nominations which in sum exceed the original contract s MDQ in any segment. Nomination reductions are determined first by scheduling priority, then by applying the overlap priorities from the original and capacity release contracts entitlement. Each segment on an original contract will have 100% overlap priority within and outside of the contract path. A customer may assign All or a portion of its Overlap Priority in a release to segments With Entitlements, Without Entitlements, or to All Segments on the contract. The total of all overlap priorities spread among all related releasing and replacement customers cannot exceed 100% per segment. After the segment entitlements have been applied to the contract, Select segments or the SEL box to mark all segments or filter by choosing W/Entitlement or W/O Entitlement. Enter the percentage in the box next to the dropdown, then click on Apply %. Beg/End Segment ID Allows customer to filter a particular section of pipeline by using Segment IDs 45

46 Create an Offer Segments Tab Segments Filtering Criteria (con t) All offers must be validated for differences prior to posting the offer. The button is in the top right corner of this tab. Click on the Validate Diff button after all segment entitlements have been entered. LINK will show any change in the market area entitlement path using the difference indicator. An X will appear in the data field under Diff Ind to show where changes in segment entitlement have occurred. The segment will also be marked on the capacity release map, viewed under related screens. The user should evaluate each segment indicator to ensure that entitlement path gives the rights intended for release. 46

47 Create an Offer Segments Tab Segments Grid Definitions SEL A column of boxes used to select a segment(s). To select all segments, Click on SEL in the column heading. An X will appear in the box beside each segment. To select one segment at a time, Click within the box beside the segment to release. Loc Zone Zone identification of the segment available for release. Line 24 inch or 30 inch, two paths available for shippers to route transports identified by the size of the pipeline, TETLP only. Seq No. Assigns a different number to each segment along the pipeline that defaults in ascending order to show the path of the contract. Seg ID The location ID of the segment. Segment Name The description of segment. Diff Ind Difference indicator marks a change in segment quantity in the release path in the market area. Net Segment Qty The original contract quantity on the releasing contract less previously awarded quantities for a specific segment. In Process Qty The sum of posted released quantities on a specific segment that has not been awarded. Qty Avail The available segment quantity for release equals Net Seg Qty minus the In Process Qty for an individual segment. 47

48 Create an Offer Segments Tab Segments Grid Definitions (con t) Min Offer Qty-Loc- The minimum offer quantity for release to be considered as valid in the bid evaluation process. Max Offer Qty-Loc The maximum offer quantity for release. Net Avail Prty % - The overlap priority percentage of the segment available for release. Overlap Prty % - The overlap priority percentage gives the holder priority when the total nominations from the original contract and any release contracts exceed the original contract MDQ in any one segment and scheduling priority is the same. Segment Type A segment type indicates the type of segment (i.e., E Entry, X-Exit, Z- Zone Boundary, F-Segment, N-Node, P Pipe extension on the mainline). AGT, ETNG, and MNUS have only a Seg Type of F-Segment. Miles from 058 on Texas Eastern shows approximate miles between a specific segment and location (end-of-the-pipeline). North to South Flow Ind on Texas Eastern shows the segment flow in relation to geographical flow of the pipeline Miles from 210 on Algonquin shows approximate miles between a specific segment and location (beginning-of-the-pipe). Eng Pipeline Section A customer can filter segment entitlements based on Engineering Pipeline Section which identifies a specific portion of the pipeline. Lateral Type Identifies each segment id as one of the options: INC Incremental Lateral, NON - Non-Incremental, and N/A Mainline segment 48

49 Create an Offer Locations Tab Location Screen Layout 49

50 Create an Offer Locations Tab LOCATIONS TAB A customer can release its available firm Receipt and Delivery locations utilizing quantity percent, quantity, or by entering a quantity in the selected location. Select individually or all by clicking on the SEL box then enter Quantity or Quantity Percent, and Click on the appropriate Apply box to populate the release quantity in the Min Offer Qty-Loc and Max Offer Qty-Loc fields or Max Offer Qty-Loc fields only. Note : Prearranged Capacity Releases will only provide a Max Offer Qty option. Up Seg Id This column shows the segment ID upstream of the location so the user can reference that segment on the segment tab to verify quantities. Up Seg Qty - LINK will validate the quantity of the upstream segment for a volume greater than or equal to the quantity released at the firm delivery location. This column shows the quantity currently applied to the segment upstream of the location. For the replacement shipper to obtain the highest scheduling priority the releasing shipper should release a firm Delivery point (Location) in the Market area. If no firm points are released in the Market area, the nomination becomes secondary within path. Note: This only applies to Market area and not Access area. 50

51 Create an Offer Rates Tab 51

52 Create an Offer Rates Tab RATES Definitions All rates are displayed as Daily Rates with the exception of Saltville. Customers may specify a Min Acpt Rate (Minimum Acceptable Rate) by inputting a value for any one or all released zones. When the Min Acpt Rate (Minimum Acceptable Rate) is applied, the Min Acpt Pct (Minimum Acceptable Percent) will automatically populate the percentage of max rate. Max Rate indicator will only populate the max tariff rate in the Min Acpt Rate column for all zones as a convenience for the customer. The Rel Acpt Bid Basis Desc in conjunction with a Max Rate release determines if the replacement shipper is billed at max rate. Path Rates are a separate set of max rates only applicable on TETLP when releasing two consecutive Market Area zones. Path rates use a mileage rate for the individual market area zones and non-mileage rate for the consecutive market area zones. Non Path Rates are max tariff rates only applicable on TETLP in the market area. The mileage and non-mileage rates are added together for each market area zone. 52

53 Create an Offer Rates Tab RATES Definitions continued Access Area Boundary Rates (AAB) are rates utilized for the location(s) on the Pipeline's system represented by the facilities at the suction side of Little Rock, Arkansas, and by the facilities at the suction side of Kosciusko, Mississippi. AAB rates are available for release when releasing the full path of the contract. Res Rate Basis Desc is to notify the rate is per day. Surchg Ind Desc is the rate(s) stated include all applicable surcharges; surcharge detail provided; no surcharge total provided. 53

54 Create an Offer Rates Tab RATES Non-Path (Capacity Release Max Tariff Rate) Screen Layout 54

55 Create an Offer Rates Tab RATES Path Rate (Capacity Release Max Tariff Rate) Screen Layout 55

56 Create an Offer Rates Tab RATES AAB Rate (Capacity Release Max Tariff Rate) Screen Layout 56

57 Create an Offer Rates Tab Calculation for Offer or Deal 57

58 Create an Offer Rates Tab Calculation for Offer or Deal 58

59 Create an Offer Rates Tab Calculation for Offer or Deal Note: The rates above were created to illustrate the difference between the presentation of path and non-path rates. They do not reflect any rate schedule or charges billed by Enbridge. 59

60 Create an Offer Rates Tab Example #1 of Calculation For An Offer: ABC Energy has entered $.07 for the rate on Zone 3. This case is where the total offer will be worth $

61 Create an Offer Rates Tab Example #1 of Calculation For An Offer: The calculation would be as follow with the Bid Eval Ind option as Net Revenue): Reservation Charge 200 (Zone 3 Qty) x.07 (Daily Rate) $14.00 (Daily Zone $) x 28 (# Days in Release) $ (Total Zone Reservation $) 61

62 Create an Offer Rates Tab Example #2 of Calculation For An Offer: \ ABC Energy has entered $.07 for the rate on Zones STX, 2, and 3. This case displays the total offer worth $

63 Create an Offer Rates Tab Examples of Calculations For An Offer: The calculation would be as follows with the Bid Eval Ind option as Net Revenue): Reservation Charge 200 (Zones STX, 2, and 3 Qty) x.21 (Daily Rate) $42.00 (Daily Zone $) x 28 (# Days in Release) $ (Total Zone Reservation $) 63

64 Create an Offer Contact Tab Contact Screen Layout All fields for Contact Info (Contact Information) are required prior to posting a release. The Releaser Contact Info defaults to the User id contact information. Additional contact info fields have been added to allow a different contact for that release. If the Additional Contact Info is different than the Releaser Contact Info, the Additional Contact Info will be the source contact for the offer. A lookup is available by double clicking on the First name data field. 64

65 Create an Offer Contact Tab Contact Additional Contact Info Lookup The lookup will provide a list of all users that have security rights to perform Capacity Release for this contract, as shown below. Double click on a user or put the curser on the line of data and click on Select to load that individuals contact data into the capacity release. 65

66 Create an Offer Summary Map Tab TE and AGT only 66

67 Create an Offer Summary Map Tab Summary Map gives users a high level summary of their contract entitlements by zone. Map contains the following information: Entry/Exit quantity by zone High and Low Segment quantity by zone Zonal MDQ (TE only) User can also change the map to view Original Contract Path, Remaining Contract Path, and Released Contract Path. Color coding is available on the map to show users the flow of the contract path TE has North to South (Market Area to Access Area) and South to North flow (traditional pipeline flow) AGT has Backflow (East to West) and Forward flow (West to East) 67

68 Create an Offer Error List Tab The system will perform validations and display all error conditions on the Error List tab when an offer is posted. The customer can select the error and then click on Go To. The system will take the customer to the tab where the error is located in order to correct. 68

69 Create an Offer Negotiated Rates Negotiated Rates If the Releasing Shipper s original contract contains a negotiated rate for commodity or fuel, the Offer maintenance screen will display an additional tab titled Neg Rates. There is a Negotiated Rate indicator (Ngtd Rate Ind) of Y-Yes for automatic pass through of the rates or N-No. Values on this TAB can not be changed. 69

70 Capacity Release - Glossary Glossary Access Area Boundary (AAB) is the location(s) on Pipeline's system represented by the facilities at the suction side of Little Rock, Arkansas, and by the facilities at the suction side of Kosciusko, Mississippi. Bid Evaluation Period - The TSP must evaluate each replacement shipper s bid to assure that the requirements of the release are met (Tariff requirements and Operational considerations). The TSP then determines the winning bid. Generally, the minimum Bid Evaluation Period is one hour after the latest Bid Deadline. Bid Period is the time between the Offer Posting and the Bid Deadline. Capacity Award - The released capacity is awarded to the winning replacement shipper(s) upon completion of the Bid Evaluation. The replacement shipper may submit a nomination in the next available nomination cycle for the release effective date upon the posting of the award. 70

71 Capacity Release Glossary (con t) Capacity Release Customers under any firm, Open-access, Part 284 service agreement can voluntarily release and assign all or part of their firm capacity rights to a Replacement Customer or a Prearranged Customer that wants to obtain that firm capacity by entering into a contract with the pipeline. Contract Path for validation and prioritization - the path from the furthest upstream location where the customer has a firm point entitlement (MDRO) or a segment entitlement to the furthest downstream location where the customer has a firm point entitlement (MDDO), Section 14.9 capacity (Texas Eastern Only) or a segment entitlement. Dekatherm (Dth) - the quantity of heat energy which is equivalent to 1,000,000 British Thermal Units. One "dekatherm" of gas shall mean the quantity of gas which contains one dekatherm of heat energy. 71

72 Capacity Release Glossary (con t) Firm - A specified reservation of pipeline capacity that may also include the reservation of specified receipt and/or delivery point capacity. Match - A prearranged replacement shipper has been given the right to match the winning bid. The capacity is awarded to the prearranged replacement shipper if he matches the winning bid. If the prearranged replacement shipper does not match the bid, the capacity is awarded to the highest bidder among the other bidding shippers. Maximum Daily Delivery Obligation (MDDO) -the maximum quantity of gas which Pipeline is obligated to deliver on any day at an indicated Point of Delivery to Customer as specified in an executed service agreement. Maximum Daily Injection Quantity (MDIQ) - the maximum quantity of gas which Pipeline is obligated to inject for Customer into storage for Customer's account on any day pursuant to the applicable storage rate schedule and executed service agreement. 72

73 Capacity Release Glossary (con t) Maximum Daily Quantity (MDQ) or Maximum Daily Transportation Quantity (MDTQ) - the maximum quantity of natural gas which Customer is permitted to deliver on any day as specified in an executed transportation service agreement. Maximum Daily Receipt Obligation (MDRO) - the maximum quantity of natural gas which Pipeline is obligated to receive on any given day at an indicated Point of Receipt from a customer as specified in an executed service agreement. Maximum Daily Withdrawal Quantity (MDWQ) - the maximum quantity of gas which pipeline is obligated to withdraw for a customer from storage for a customer's account on any day pursuant to the applicable storage rate schedule and executed service agreement. Maximum Storage Quantity (MSQ) - the maximum quantity of gas which customer is permitted to have in storage at any given time during the contract year as specified in the applicable storage rate schedule and executed service agreement. 73

74 Capacity Release Glossary (con t) Overlap Priority - used as a tie-breaking mechanism in the event that a Releasing Customer and/or Replacement Customer(s) submit overlapping nominations which in sum exceed the MDQ of original contract in any segment. The relative priority of each nomination shall be determined first by scheduling priority, then by applying the overlap priorities provided under the Releasing Customer s notice. Release Offer - must state all the parameters of the release such as the begin and end dates, the receipt and delivery points, the quantity and the release rate. Replacement Customer - any entity which submitted a bid pursuant to Section 3.13 of the General Terms and Conditions or executing a Capacity Release Umbrella Agreement with Pipeline to participate in Section 3.14 of the General Terms and Conditions. 74

75 Capacity Release Glossary (con t) Seasonal Release - where the released entitlements on a contract vary for the duration of a release based on Seasonal Periods associated with the contract. Segment - the span of pipeline between a location and the nearest downstream location. A segment must be within the contract path to have a segment entitlement. Segment Entitlement - the quantity of gas a customer has the primary right to flow through a given pipeline segment. Storage Release - used to release space, injection and withdrawal rights into and out of a storage facility. 75

76 Capacity Release TETLP Tariff References 3.14 Capacity Release Sheet #529 The tariff states that any customer under firm, open-access, Part 284 service agreement can voluntarily release and assign their firm capacity. Bids are based on the Reservation Charge only. Release on or after July 30,2008 may exceed max tariff rate if the term of the release is one year or less (B) (1) Sheet #530 - Bid Time Line 3.14 (C) (1) Sheet #531 - Releases Not Subject to Bidding 3.14 (E) Sheet #534D - Bid evaluation 76