Nomination Sequencing Update

Monday, December 12, 2005

Changes to INSIDEtracc on November 8th altered the way supplies are allocated to downstream nominations when a supply shortfall occurs. California Gas Transmission published an article on November 22nd with an example to demonstrate the impact of the nomination processing rules. In short, under certain circumstances, a higher ranked As-Available, Market Center, or Pool to Pool nomination could be reduced before a lower ranked firm transportation nomination.

This has impacted a limited number of customers at this time. The customers impacted are those that:

  1. experience a supply shortfall, and
  2. rank a firm transportation nomination lower than other nominations (As-available, Market Center, and pool to pool) from the same TSA or pool.

Nominations involving only firm transportation contracts from the same TSA or Pool are not impacted. In these cases, destination rankings are used to allocate the gas across the nominations.

CGT Takes Action

We apologize for any inconvenience this has caused our customers. CGT is already working on an INSIDEtracc programming change that will ensure, in a supply shortfall situation, that nominations are prioritized by destination rankings as designated by customers. To be successful, a solution requires time for preparation, programming, review and testing. In the interim, CGT is committed to providing assistance to customers with their nominations and applying the desired customer designated destination rankings.

Until a programming change is implemented, customers who commonly rank nominations with firm transportation lower than other nominations are encouraged to contact their CGT Account Services Representative for possible interim solutions.