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Commercial Principles

Overview

  • The Open Season period commencing March 28 through May 30, 2018.
  • The Open Season offer is available to both existing and prospective shippers, for a minimum term of 15 years.
  • We have adopted a stand-alone tolling approach for the added capacity, rather than rolling expansion costs in with existing tolls.
  • Available capacity is restricted to a cap of 100 MMcf/d for any one party, to respond to the needs of existing customers while also opening up access to other parties who may otherwise be unable to obtain capacity on Alliance.

Details

  • The full path toll for new capacity is set at approximately $1.26 (USD/MMBtu). Bids will be evaluated on the basis of Net Present Value based on total contract volume and length of term of the expansion and term-up capacities (to a maximum of 10 years for evaluation purposes), and the respective tolls.
  • Existing shippers may also "term up" by extending their existing base contracts by at least 10 years, at the existing 5+ Year rates per the respective tariff.
  • Individual shippers are not compelled to term-up, but for the project to proceed, Alliance requires that a majority of the Existing Capacity contracts be extended.
  • Two Open Seasons are being held concurrently – one for Canadian receipt and delivery services, and one for US transportation service, reflecting the separate NEB and FERC regulatory authority over the two respective Alliance segments. Parties interested in acquiring capacity from Canada must participate in both Open Seasons to receive the equivalent to a full-path service to Chicago. Parties looking to hold capacity from the Bakken would need to participate in the US Open Season.

Please see Q&A for more information.