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Frequently Asked Questions: Balancing Agent

As a gas marketer, I want to provide balancing services for a noncore end-use customer. What are my options?

You may take one of the following two approaches to act as a balancing agent for a noncore end-use customer.

  1. Place the customer in your NBAA. You may execute a Noncore Balancing Aggregation Agreement (NBAA) and then add customer(s) to it by executing an Exhibit A to the NBAA with each customer. The NBAA allows you to aggregate balances of more than one customer. The NBAA holder is financially responsible for imbalances in this case. If the customer is currently part of another NBAA, an Exhibit B to the NBAA is required to terminate the previous NBAA relationship.
  2. Get the customer’s authorization to trade imbalances. In the end-use customer’s Natural Gas Service Agreement (NGSA), Exhibit C, the customer must identify you as a nominating marketer and give you authorization to trade imbalances. You may then manage the customer’s imbalances, although the customer remains financially responsible for them. Exhibit D of the NGSA should also indicate that you (the marketer) will receive the customer’s imbalance statement. These changes to the NGSA can be made with the forms Authorization to Revise Exhibit C of PG&E’s Natural Gas Service Agreement, and Authorization to Revise Exhibit D of PG&E’s Natural Gas Service Agreement.

Where do I find and to whom do I submit the agreements and exhibits necessary to become a balancing agent?

The NBAA, NBAA Exhibit A, NBAA Exhibit B, Authorization to Revise Exhibit C of PG&E’s Natural Gas Service Agreement and Authorization to Revise Exhibit D of PG&E’s Natural Gas Service Agreement are available from the Pipe Ranger Library’s list of Standard Forms.

The latter forms include directions for submittal. If you would like to open a new NBAA account, please contact your CGT Account Services Representative.