Non-Critical Notice

TSP:006958581
TSP Name:ANR Pipeline Company

Notice Type Desc: Other
Posting Date/Time: 01/03/2013 10:00
Notice Effective Date/Time: 01/04/2014 09:00
Notice End Date/Time: 04/30/2028 23:59
Notice ID: 6526
Notice Status Desc: Initiate
Prior Notice:  
Reqrd Rsp: 5
Rsp Date/Time:  
Subject: Reduction Option (Open Season #149)
Notice Text:
DATE: January 3, 2013 TIME: 10:00 A.M.

TO: ALL ANR PIPELINE COMPANY CUSTOMERS

RE: Reduction Option (Open Season #149)

A Shipper has expressed interest in purchasing 50,000 Dth/d of winter capacity and 20,000 Dth/d of summer capacity of FTS-1 transportation from January 1, 2014 through April 30, 2028. The Shipper has requested and ANR is agreeable to add to Shipper's transportation agreement, a reduction option as provided under Part 6.32.5 of ANR's General Terms & Conditions. Shipper shall have the one time option to reduce the MDQ effective for any future period commencing on or after January 1, 2018 - provided, however, this reduction option right requires a minimum of 12 months notice and terminates on January 1, 2019 The service agreement has a primary receipt point of Detroit A & B (meter no. 48642) and a primary delivery point of Alpena Del/Mich Con Gas (meter no. 40832). ANR will reject bids with a monthly reservation rate of less than ANR Pipeline's maximum tariff rate.

As provided by Part 6.32.5, granting of the reduction option requires ANR to hold an open season. The open season will commence at 10:00 a.m. CCT on Thursday January 3, 2013 and will end at 10:00 a.m. CCT on Thursday, January 10, 2013. Winning bidders will be notified no later than 3:00 p.m. on Friday, January 11, 2013. Pursuant to ANR's tariff, all reduction option requests will be treated equally under this open season. All bids submitted during the open season may be withdrawn and/or replaced with an equal or higher Net Present Value (NPV) bid during the open season period. Bids cannot be replaced with lower NPV bids. Parties interested in this capacity may specify an acceptable minimum prorated MDQ. ANR reserves the right to reject any bid that has a negative NPV. ANR reserves the right to reject negotiated rate bids. ANR reserves the right to reject bids with deviations in monthly MDQs. ANR reserves the right to reject contingent and incomplete bids. ANR has the right but not the obligation to clarify and finalize incomplete bids. Upon completion of this open season, all remaining bids will be considered binding until a successful bid(s) has been awarded.

All complete bids received during the open season will be evaluated and compared with the Initial Shipper's request for service on a Net Present Value (NPV) per Dth basis using the factors below.

NPV/Dth = En [R*(1 / (1+i)**n)]/MDQ
En = Summation of months 1 through n (Sigma)
n = term in months, assuming any reduction option is fully exercised
MDQ = Contract MDQ
R = Incremental monthly revenue
i = Monthly Discount Factor (current FERC quarterly rate). This rate can be
found at http://www.ferc.gov/legal/acct-matts/interest-rates.asp

These factors will be weighted equally.

Capacity will be awarded to the Initial Shipper or to the highest bid(s) for which the NPV exceeds the NPV of the Initial Shipper. If more than one bid has the same NPV, then the capacity shall be awarded pro rata to shippers with matching NPV bids.

Parties interested in this capacity should submit a binding Service Request Form or submit a binding bid via facsimile at (832) 320-5677. Parties may also submit a binding bid via email by sending their requests to anrmarketing@transcanada.com. Contact ANR Marketing between 8:00 a.m. and 5:00 p.m. CCT, Monday through Friday to confirm ANR's receipt of any bid. For further information please contact your designated Account Manager or one of the Account Managers listed below.

Skarb, Gary 248-205-4536
Anderson, Erik 248-205-4560
Anderson, Larry 832-320-5472
Garman, Ken 262-792-5406
Hopper, Bruce 262-792-5403
MacMillan, Bob 248-205-7547
Sowa, Amy 832-320-5374
Lonnie Lozano 832-320-5679