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California Gas Transmission's last Winter Wednesday recommended gas suppliers nominate to each of their end-use customers. This Winter Wednesday provides more detail concerning that recommendation.

Balancing Occurs at the NBAA Level

Diversion compliance is determined at the Noncore Balancing Aggregation Agreement (NBAA) level, just like OFO and EFO compliance. As long as the balancing agent's customers do not, in aggregate, use more than the agent's aggregate post-diverted supply, the balancing agent is in compliance and not subject to noncompliance charges.

Beyond Diversions

During an extreme situation, such as a supply shortage that threatens core deliveries, Pacific Gas and Electric Company must monitor its pipeline systems closely. In the event that a diversion is not sufficient to remedy the supply shortage, Pacific Gas and Electric Company may take additional measures to protect the integrity of its pipeline system and ensure service to core customers. Such measures may include interruption of service to noncore end-use customers whose usage exceeds post-diverted supply.

Why Nominate to End-Use Customers?

Without nominations directly to an end-use customer, post-diverted supply to that customer will be zero.

If the diversion fails to remedy the supply shortage and Pacific Gas and Electric Company must take further action, end-use customers using more than their post-diverted supply may be subject to an interruption of service. To minimize the risk of service interruption to end-use customers, CGT recommends that suppliers nominate directly to each of their end-use customers.

Will Nominating to End-Use Customers Ensure Them Service?

Although nominating to each end-use customer will minimize the risk of service interruption, such actions do not guarantee service under every possible scenario.

If the above steps fail to remedy the supply shortage, or if local constraints threaten core deliveries in a particular area, Pacific Gas and Electric Company may take steps beyond those described above. These steps may include interruption of service to noncore end-use customers, even those using less than their post-diverted supply. Such actions would only be taken if necessary to protect pipeline integrity and ensure deliveries to core customers.

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