Self-Balancing Open Season

Friday, March 25, 2005

In 2001 California Gas Transmission announced Self-Balancing, a new option for balancing gas on its pipeline system. For 2003, a Self-Balancing open season is now under way. Customers who would like to Self-Balance beginning April 1, 2003, must elect Self-Balancing by February 28, 2003.

Self-Balancing allows balancing entities to withdraw from the utility's monthly balancing service. Instead, they commit to balancing their own supply and demand every day, within certain limits. In exchange, Self-Balancers receive a $0.005 per Decatherm (Dth) credit based on actual usage. This credit offsets a portion of the balancing costs currently included in all customers' rates. Failure to meet daily Self-Balancing requirements may result in significant daily noncompliance charges.

There are many critical details to understand before choosing Self-Balancing. For complete information on the Self-Balancing program and open season, please read the 2001 Self-Balancing Overview, found in the Settlements wing of the Pipe Ranger Library. The program has not changed for 2003.

Customers and balancing agents not electing Self-Balancing will remain in the current monthly balancing program. The monthly balancing program is not changing as a result of Self-Balancing.

If you have further questions or would like to elect Self-Balancing, please contact your CGT Account Services Representative.

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