Iroquois Gas Transmission System, L.P. is pleased to announce an Open Season under Section 3 of its Rate Schedule RTS commencing at 4:00 p.m. ET on Thursday, May 3, 2012, and concluding at 4:00 p.m. ET on Thursday, May 10, 2012.  The terms and conditions under which this capacity is being offered are discussed below.

Service Package #1

Service Package #1

All bids submitted during the open season must indicate the Open Season Notice ID number in which they are participating. 

All bids submitted during the open season may be withdrawn and/or replaced with a higher PV bid during the open season period.

Bids cannot be replaced with lower PV bids. 

Iroquois reserves the right to reject bids with deviations in monthly MDQs.

Iroquois reserves the right to reject contingent bids.

Iroquois reserves the right to agree to discounted rates on a point and volume specific basis.

Upon completion of this open season, all remaining bids will be considered binding until a successful bid(s) has been awarded.

The demand and commodity rates specified above for the Service Package described herein represent the minimum acceptable demand and commodity rate that Iroquois is willing to accept for the capacity and the terms underlying the respective Service Packages.

Shippers may not bid a term of service greater than or less than the term specified above.

Capacity will be awarded based on the highest total value bid for the Service Packages.   

This capacity is subject to an existing shipper’s pre-arranged deal. 

Negotiated Rate Formula for Package 1 and Package 2:

1)    Surcharges.  Shipper shall be responsible for (i) Transporter’s Measurement Variance/Fuel Use Factor, and (ii) FERC-prescribed surcharges of general applicability, including but not limited to the ACA Surcharge, that Transporter may be entitled to charge from time to time pursuant to Transporter’s FERC Gas Tariff.

2)    Pricing Source:  Iroquois Zone 2 Price shall be the price reported in Gas Daily’s “Midpoint” for “Iroquois, Zone 2” in the Citygates section of the “Daily Price Survey ($/MMBtu)” for nominations to any mainline delivery points or Gas Daily’s “Midpoint” for “Transco Zone 6 NY” in the Citygates section of the “Daily Price Survey ($/MMBtu) for nominations to Hunts Point.  Iroquois Receipt Price shall be the price reported in Gas Daily’s “Midpoint” for “Iroquois, receipts” in the “Canadian Gas” section of the “Daily Price Survey ($/MMBtu)”.  Saturday, Sunday and Monday Demand pricing will be determined using Gas Daily published in the following Monday.

3)    Measurement Variance/Fuel Use:  For purposes of calculating the Daily Demand Charge, the Measurement Variance/Fuel Use Factor is converted from a percent to decimal and the assumption is that the dollars/cents equivalent of the factor is equal to the decimal form.

4)    Daily Demand Charge:  The applicable Demand Charge shall be calculated on a daily basis as follows:  Daily Demand Charge shall equal 85% of [Iroquois Zone 2 Price less applicable Iroquois Tariff variable charges (including ACA, Commodity and Measurement Variance/Fuel Use Factor) less Iroquois Receipt Price] multiplied by 50%.  Notwithstanding the foregoing, in no event shall the Daily Demand Charge be less than $0.005/Dt on each contract.

5)    At any time during the Term of the Agreement, Transporter and Shipper may mutually agree to amend the rate and establish a fixed Daily Demand Charge; however, prior to taking affect the amendment will be filed with FERC and be subject to its approval.

6)    To the extent Transporter is unable to provide transportation service on any given day, the Daily Demand Charge for any nominated volume that is not ultimately scheduled shall be $0.005/DT on each contract.  Otherwise, the Daily Demand Charge shall remain in effect for all scheduled gas.

Parties interested in this capacity should submit a binding Open Season Bid Form, which can be found at our website at http://www.iroquois.com/, to Gina Ferreri via facsimile at (203) 925-7296.  For further information, please contact Maria Nemchek at (203) 944-7004.