In accordance with Section 26 of the General Terms and Conditions of Northern’s FERC Gas Tariff, the following is Northern’s Unsubscribed Capacity Report by Group by Month. The unsubscribed capacity listed is for informational purposes, and can change at any time, without notice, due to firm requests and changes in operating conditions. This capacity is available in accordance with the rates, terms, and conditions of Northern’s FERC Gas Tariff. Northern is not required to execute any contract for service at less than maximum rates.
Requests will be processed in the order they are received. However, for unsubscribed capacity that has not been awarded, if multiple requests are received, the capacity will be awarded to the best bid, portions of bids, or combination of bids that results in the highest net present value of reservation revenue to Northern, except as provided below.
Alternate Bid Evaluation Methodology-
For requests for (1) service with a start date within 7 business days of the request for any term including short-term deals of one month or less, or (2) service with a start date of the first day of the upcoming month with a term of one month or more (consecutive days): Capacity will be awarded to the best bid, portions of bids, or combination of bids that result in the highest total net present value (NPV) of reservation revenue to Northern on a per unit of capacity basis. This will be determined by discounting the cash flow (using the FERC interest rate) generated from the transportation rate multiplied by the quantity for each day bid and then dividing the net present value by the maximum daily quantity bid. The NPV calculation shall include only revenues generated by the reservation rate or a guaranteed throughput quantity. The best bid will be the bid with the highest per dekatherm net present value. In the event equivalent offers are submitted, the capacity will be awarded pro rata to the equal bidders.
Shippers are responsible for assuring that necessary capacity on the upstream and downstream pipelines has been arranged so its quantities will be confirmed during the nomination and scheduling process. Northern does not guarantee that pressures will be adequate to effectuate such receipts and deliveries.
The groups listed have unsubscribed capacity for firm service as indicated in Dekatherms. The unsubscribed capacity listed is the minimum available for that month. This capacity may be further limited by other group and/or path constraints. This website provides the following information regarding unsubscribed capacity:
Northern will not sell capacity or grant realignment requests for capacity under the TF and TFX Rate Schedules until it has been posted from the effective date for:
Northern will not enter into a contract with an effective date greater than 12 months into the future to the extent Northern determines that there is a ROFR risk (a risk of selling the capacity prior to the future effective date for a term of one year or longer resulting in the right of first refusal being applicable to the earlier term capacity which could cause Northern to have to construct facilities to serve either or both shippers).
Unless posted otherwise, Northern will not sell capacity or grant realignment requests for unsubscribed capacity except as set forth below:
Northern will sell capacity for multiple year terms up to 60 calendar days prior to the effective date for service requested for a minimum of 5 months each year, and if the request for service includes a heating season month (November through March), then all the heating season months must be included.
However, Northern will sell unsubscribed capacity or grant realignment requests for the upcoming winter (November through March) or upcoming summer (April through October) season in advance of the 60 days provided above.
Northern has 7 work days to determine if capacity is available for a request for service. The count will begin the next work day for requests received after 9:00 a.m. CCT on any work day.
Capacity for all services is posted on this website. Capacity may be available beyond the 13 months indicated in this posting. Northern may, from time to time, also post particular segments of available capacity on this website under Non-Critical Notices > TSP Capacity Offerings.
Please contact your customer service and business development representative for additional information on capacity availability. For a listing of representatives please see - Contact Us.