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Long Term Competition Key Concepts

Long Term Competition Key Concepts. Mike Norris July 23, 2014. Renewal Requests - Key Principles. A Renewal Request may or may not have ROFR rights attached to it Duration alone (5 year minimum) is what determines whether a Renewal Request has ROFR

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Long Term Competition Key Concepts

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  1. Long Term Competition Key Concepts Mike Norris July 23, 2014

  2. Renewal Requests - Key Principles • A Renewal Request may or may not have ROFR rights attached to it • Duration alone (5 year minimum) is what determines whether a Renewal Request has ROFR • A competition under Tariff Section 2.2 is a competition for the capacity that was encumbered by the TP (e.g. Rollover Rights) for purposes of satisfying a future Renewal Request. • The act of submitting a renewal request is the exercising of Rollover Rights

  3. 5-Year Renewal with No Challenger Original Reservation Potential Reserved Capacity Actual Reserved Capacity 1. (duration – 5 yrs) Stop Date of Original Reservation Renewal Request 2. Potential Reserved Capacity Actual Requested Capacity (duration – 5 yrs) Confirmed Renewal 3. Potential Reserved Capacity

  4. Less than 5 Year Renewal with no Challenger Original Reservation Potential Reserved Capacity Actual Reserved Capacity 1. (duration – 5 yrs) Stop Date of Original Reservation Renewal Request 2. Requested Capacity (duration – 2 yrs) Confirmed Renewal 3. Actual Reserved Capacity

  5. 5-Year Renewal with a Challenger Original Reservation Original Reservation ROFR Period Potential Reserved Capacity Actual Reserved Capacity 1. (duration – 5 yrs) Stop Date of Original Reservation Renewal Request 2. Potential Reserved Capacity Requested Capacity (duration – 5 yrs) Challenging Request Potential Reserved Capacity Requested Capacity 3. (duration – 6 yrs) 4. Confirmed Reservation Potential Reserved Capacity (duration – 6 yrs)

  6. Less than 5 Year Renewal with no Challenger Original Reservation Potential Reserved Capacity Actual Reserved Capacity 1. (duration – 5 yrs) Stop Date of Original Reservation Renewal Request 2. Requested Capacity (duration – 2 yrs) Challenging Request Requested Capacity 3. (duration – 3 yrs) Confirmed Reservation 4. Actual Reserved Capacity (duration – 3 yrs)

  7. Wrap up • The right to renew is the right to turn Potential Reserved Capacity into actual Reserved Capacity via the use of request type Renewal • What is being competed for is the Potential Reserved Capacity

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