Millennium Pipeline Notice 25931509

TSP Name

Millennium Pipeline Company, L.L.C.

TSP

607821050

Date

Time

Notice ID

25931509

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

03/17/25
03/17/25
04/17/25



7:51:29 AM
12:00:00 AM
12:00:00 AM



Subject: Notice of Open Season for Firm Capacity Subject to a Right of First Refusal (ROFR)

Author: Bonnie Carroll

Notice Text

Date:     March 17, 2025To:          All potential shippers, customers and interested parties Re:         Notice of Open Season for Firm Capacity Subject to a Right of First Refusal (ROFR)I. General Millennium hereby announces the commencement of an open season for two packages of capacity that are each subject to a right of first refusal (ROFR) pursuant to Section 4.1 of the General Terms and Conditions of Millennium’s FERC Gas Tariff.   Service under both packages is provided under Millennium’s Rate Schedule FT-1.     The details for each package are as follows: Package 1Primary Receipt Points:   Sanford (25,428 Dth/day) and Stagecoach (17,568 Dth/day)Primary Delivery Point: Wagoner (42,996 Dth/day)Segment Capacity:   42,996 Dth/dayTerm: Available November 1, 2025Recourse Rate: $0.583/Dth Package 2Primary Receipt Points: Sanford (1,186 Dth/day) and Laser (50,000 Dth/day)Primary Delivery Point: Wagoner (51,186 Dth/day)Segment Capacity:   51,186 Dth/dayTerm: Available October 1, 2025Recourse Rate: $0.583/Dth  This Open Season will commence at 9 a.m. CDT on March 17, 2025 and close at 5:00 p.m. CDT on March 21, 2025 (Open Season Period).  To be considered, interested parties must submit bids electronically to:  Millennium Pipeline Company, L.L.C. Attention: Mark PreisnerPhone: (203) 644-0120 Email:  preisner@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 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.   Currently, the maximum reservation rate under Rate Schedule FT-1 and applicable to the transportation service offered is a daily rate of $0.583/Dth.  Millennium reserves the right to reject any bids that do not conform to the primary points or terms listed herein or that contain non-standard terms or any bids that are discounted.  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 capacity becomes available on October 1, 2025 (Package 2) and November 1, 2025 (Package 1). To determine the winning bidders, Millennium will calculate the NPV of each bid for the capacity based on the bids for service commencing on October 1, 2025 (Package 2) and November 1, 2025 (Package 1), respectively.  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  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, but should specify which package is being bid upon.Because this capacity is subject to a ROFR, Millennium must follow the procedures set forth in Section 4.1(a) (2) if Millennium receives an acceptable offer.  As part of this process, the existing shipper will have 15 calendar days to match an acceptable bid.  No award of this capacity can be made until the existing shipper has made its election to match or reject the acceptable bid.  If the existing shipper does not elect to match an acceptable bid, 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, 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  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 Mark Preisner at (203) 644-0120 or preisner@millenniumpipeline.com.