Winter Wednesday - New Diversion Information

Thursday, March 24, 2005

New Diversion Information

Pacific Gas and Electric Company's tariffs provide for involuntary diversions in the event supply to core customers is not sufficient to meet core demand. (See gas Rule 14 This link will open in a new window, Section G.) Extreme temperatures are only one reason core supply may fall short of demand.

Some suppliers recently announced their unwillingness to sell gas to Pacific Gas and Electric Company, limiting supply available to core. If available core supply is inadequate to meet core demand, Pacific Gas and Electric Company must divert noncore gas to serve core customers.

Although the West Coast is enjoying a warm winter, California Gas Transmission (CGT) customers should familiarize themselves with diversion procedures. Planning ahead now will prove invaluable in the event of a diversion.

Getting Ready for Winter contains a wealth of diversion information and provides readiness tips for suppliers and end-use customers. Suppliers should now be familiar with this document and have diversion plans established with their customers.

Additionally, CGT offers the following tips--including some new and critical information--to help suppliers prepare for a diversion:

Nominate to Each End-Use Customer

Pacific Gas and Electric Company closely monitors its pipeline system, especially during a critical situation such as a diversion or Emergency Flow Order (EFO). If necessary to protect the integrity of the pipeline and maintain deliveries to core customers, Pacific Gas and Electric Company may interrupt service to a noncore end-use customer if that customer's usage exceeds its post-diverted supply. (See gas Rule 14 This link will open in a new window, Section A).

To minimize the risk of service interruptions, suppliers must nominate to each of their end-use customers. If nominations are not made to an end-use customer, that end-use customer's post-diverted supply will be zero, and usage above that level could result in an interruption of service.

Rank End-Use Customers

Suppliers should use INSIDEtracc's destination ranking feature to prioritize deliveries to end-use customers according to their commercial arrangements.

Once a diversion is announced, nominations are locked and destination rankings cannot be altered. Post-diverted supplies will be scheduled to end-use customers based on these rankings.

Talk Now, Talk Later

Suppliers should communicate with their customers now, establishing communication plans as suggested in Getting Ready for Winter. Prior to a diversion, suppliers and customers should agree how the supplier will inform the customer of post-diverted volume.

Suppliers should also talk to customers during the diversion. Make sure each customer's usage does not exceed its post-diverted supply.

A CGT Account Service Representative is available to answer any questions you may have.

Related Links