Clarification of OFO Noncompliance Charge Exemption

Thursday, July 07, 2011

With CPUC approval of the Gas Accord V Settlement, the California Gas Transmission OFO noncompliance charge exemption was changed from $1,000 per event to 1,000 Dth per event. In the past, if a customer's total noncompliance charge per event was less than $1,000, CGT had the authorization to waive the charge. Now, if the out-of-compliance volume is less than or equal to 1,000 Dth, CGT will waive the noncompliance charge.

If CGT calls a High/Low Inventory OFO, and the customer is above the upper tolerance band or below the lower tolerance band, they will not be charged a noncompliance charge if their total out-of-tolerance amount (the amount above the tolerance band or below the tolerance band) is less than or equal to 1,000 Dth.

If the customer is above or below the tolerance band by 1,001 Dth, for example, they will be charged the entire noncompliance charge; e.g., 1,001 Dth times the per Dth charge indicated when the OFO was called. Per gas Rule 14 This link will open in a new window, "If the noncompliance charge is greater than 1,000 Dth, the Balancing Agent will be responsible for the full noncompliance charge, i.e., 1,000 Dth will not be deducted from the calculated noncompliance charge."

Please contact your CGT Sales, Services, or Scheduling Representative if you have questions.

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