Storage Shrinkage Arrives May 1

Tuesday, March 29, 2005

In its Gas Accord II -- 2004 Decision of December 18, 2003, the California Public Utilities Commission approved a new, separately identified shrinkage component for storage injections. On March 19, 2004, Pacific Gas and Electric Company asked the CPUC to approve changes to gas Rule 21 that will implement the new storage injection shrinkage factor. Once approved, an in-kind shrinkage factor of 0.8% will be applied to storage injections beginning May 1, 2004.

The new storage shrinkage rate will apply to all California Gas Transmission storage programs, including negotiated firm storage (G-NFS), negotiated as-available storage (G-NAS), standard firm storage (G-SFS) and core firm storage (G-CFS). Negotiated storage contracts, however, may specify individually negotiated storage injection shrinkage rates.

CGT has updated Pipe Ranger's Shrinkage Factors page, adding the new storage shrinkage factors and links to Calculating Shrinkage, a new Pipe Ranger page that includes formulae and examples of shrinkage calculations.

Please contact your CGT Account Services Representative if you have any further questions.

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