Unexpected Supply Changes May Lead to Later OFO Notifications

Tuesday, March 29, 2005

Pacific Gas and Electric Company's California Gas Transmission has recently experienced unexpected swings in gas supplied to its system. Large, incremental supply transactions have taken place after CGT's morning OFO notification signals "No OFO." These increased supplies have been large enough to drive pipeline inventory outside normal operating parameters.

With the current inventory of Imbalance Gas in Storage now exceeding 4.04 Bcf, injection for pipeline balancing is unavailable. For gas day October 7, 2004, CGT was forced to limit supply to the volumes scheduled in the Timely cycle in order to ensure safe and reliable operation of its pipeline system. In more extreme cases, CGT has implemented Receipt Point Capacity Allocations (RPCA) to keep pipeline inventory within safe operating limits.

CGT would like to remind customers that gas Rule 14 This link will open in a new window allows CGT to call OFOs with noncompliance charges as late as 6:00 p.m., Pacific time, the day prior to the OFO day. To reduce the likelihood of implementing an RPCA, CGT may call an OFO later in the day, even after CGT has issued its 7:30 a.m. notice that no OFO was necessary at that time.

What can shippers do to help avoid such intrusive measures taken to protect pipeline integrity?

  •  Balance supply and demand daily. Work to ensure that supplies brought onto the system balance with daily customer demands.
  • Keep an eye on the Pipe Ranger System Inventory Status This link will open in a new window throughout the gas day.

A California Gas Transmission Representative is available to answer any further questions you may have.

Related Links