Open Season Storage and the Proposed Decisions

Tuesday, March 29, 2005

Customers considering Open Season storage capacity should be aware of potential changes to California Gas Transmission's standard firm storage services.

Both Administrative Law Judge Wong's Proposed Decision (PD) of November 18, 2003, and California Public Utilities Commissioner Peevey's Alternate Proposed Decision of December 4, 2003, would adopt California Gas Transmission's 2004 Extension and Open Season. They would also make significant changes to one CGT service offered in the Open Season: standard firm storage. Since both PDs would adopt the same program, CGT believes it likely that the CPUC's final decision will adopt these changes.

With this expectation in mind, CGT offers the following summary of the standard firm storage program offered in the Open Season, as proposed by both PDs. Only a final decision from the California Public Utilities Commission can define the final rules for CGT storage in 2004.

Open Season Storage Offered Under Rate Schedule G-SFS

Both PDs would adopt the new rate schedule G-SFS and eliminate G-FS service. However, the PDs would not adopt the new injection and withdrawal ratios originally proposed by Pacific Gas and Electric Company, but would instead adopt the ratios shown in the table below. (This table corresponds to the table on page 8 of the Guide to the Extension And Open Season.)

G-SFS Firm Injection and Withdrawal Rights
Will be Proportional to Contract Inventory (CI)
Apr May Jun Jul Aug Sep
Firm Injection = CI214 = CI214 = CI214 = CI214 = CI214 = CI214
Firm Withdrawal 0 0 0 = CI30 = CI30 = CI30
Oct Nov Dec Jan Feb Mar
Firm Injection = CI214 = CI214 0 0 0 = CI214
Firm Withdrawal 0 = CI54 = CI30 = CI30 = CI30 = CI54

The PDs would allow G-SFS customers to choose three months of firm counter-cyclical withdrawal rights. As an example, the table above shows counter-cyclical withdrawal in July through September.

Both PDs would adopt shrinkage charges for all storage injections. Additionally, all reservation charges for G-SFS service would be included in a single reservation rate based on contract inventory. CGT's Corrected PD Rate for this service is $1.416 per Dth of contract inventory.

Why Open Season Storage?

The Open Season is your first opportunity to acquire firm CGT storage in 2004 and beyond. Both PDs would allow Open Season requests with terms of up to 15 years. Both PDs would also retain features that add value, such as the ability to trade imbalances with storage inventory. Additionally, CGT's standard firm storage may later be supplemented with negotiated injection or withdrawal capacity. Why wait for 2004 leftovers?


Your CGT Representatives can be reached via the CGT Helpline, 1.800.343.4743.

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