Winter Wednesday - Diversion FAQs

Tuesday, March 29, 2005

Diversion Frequently Asked Questions

Q After a diversion is called, can I modify my nominations or place additional nominations from storage?

A No. Once a diversion is announced, all nominations are locked for the gas day. All further nomination cycles for the gas day are suspended.

Q My core markets are supplied by multiple layers of upstream pools. Will these pool-to-pool nominations increase the risk of my core gas being diverted?

A No. Gas scheduled for delivery to core customers is not subject to diversion.

INSIDEtracc will identify gas serving core customers, shielding it from diversion, regardless of the number of pool-to-pool transfers involved.

Q If I transport gas using a core backbone transportation contract, will it be protected from diversion?

A All firm backbone transportation is treated equally during a diversion.

Gas scheduled to core customers is not subject to diversion, regardless of the backbone transportation used. Gas scheduled to noncore markets is subject to diversion based upon backbone transportation contract.

In this example, if the supply were destined for noncore markets, it would be subject to diversion along with all firm supply, on a pro rata basis. If the supply were destined for core markets, it would not be subject to diversion.

Q If a supplier fails to deliver gas to another supplier because the gas was diverted, is this considered force majeure?

A Pacific Gas and Electric Company does not have access to contractual arrangements between suppliers. Force majeure would be defined by the two contracting parties, subject to possible interpretation by a court of law.

Q Is shrinkage taken into consideration when determining diversion compliance?

A During a diversion, a balancing entity's metered usage (adjusted for shrinkage) may not exceed post-diverted supply. Rule 21 This link will open in a new window has all the details.