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Frequently Asked Questions: Expedited Application Docket Contracts

On what paths may EAD contracts take their supply?

EAD contracts have access to both the Silverado and Baja paths at negotiated contract rates. In some cases, EAD contracts allow access to the Redwood path at full tariff rates, with some restrictions.

What is the rate structure for these contracts?

Firm capacity for EAD contracts cannot be brokered, and the gas supplied under an EAD contract must be delivered to and used by the specific EAD premises. Specific backbone contracts have been set aside by PG&E to facilitate deliveries to the customer premises; charges associated with the use of these contracts have been bundled with the EAD contract rate and not billed separately. EAD rates are generally volumetric, consistent with the original contracts. The volumetric EAD rate will apply only to that gas that is burned at the EAD premises. These rates are bundled, i.e., backbone transmission charges and local transmission and distribution charges are included in one rate. Therefore, all gas delivered to an EAD premises using an EAD contract will be billed the bundled EAD rate regardless of the receipt point, unless the gas is proven to originate on the Redwood path. This would be accomplished by nominating from the Malin receipt point to the premises directly, without going through a citygate pool. Any gas originating at a citygate pool and delivered to an EAD premises on the EAD contract will be billed at the full bundled EAD rate.

Gas nominated on the Redwood path directly to an EAD premises will be billed at the applicable backbone transmission rate for the Redwood path (to the holder of that capacity) and level of service (firm or as-available) plus the G-NT (or G-COG, if applicable) rate for delivery from the citygate to the EAD premises, just as service to non-EAD premises is billed.

How will imbalances be handled?

Positive imbalances created at the EAD premises and delivered on the EAD contract can only be traded after it has been converted to citygate gas, through a charge equivalent to the Baja path as-available rate.