Communication Going Out to Noncore Customers

Monday, August 29, 2011

As PG&E's California Gas Transmission has reported
article This link will open in a new window, pressure reductions on the CGT backbone system this summer have resulted in reduced pipeline system inventory to meet daily and hourly fluctuations in demand and supply. Under normal operating conditions, CGT has approximately 600 MMcf of system inventory. Currently, that volume is reduced to approximately 200 MMcf to handle fluctuations in demand and supply.

A letter has gone out to all PG&E noncore customers to explain this situation. The letter serves as a reminder that noncore customers enjoy a lower gas rate when compared to core customers, and with that benefit comes the burden of being subject to possible curtailment of part or all of their gas service.

In the past, possible noncore customer curtailments were generally linked with severe cold weather conditions. Under CGT’s current operating conditions, there is a possibility that under certain circumstances, CGT may need to enter a noncore customer curtailment situation due to the reduced system inventory to deal with fluctuations in supply or demand.

The letter is asking noncore customers, along with their gas marketers, to more closely monitor supply and usage during this period of reduced inventory. Noncore customers are also asked to review and confirm their established emergency plans to ensure the safe reduction of natural gas usage if a curtailment is called.

CGT asks gas suppliers to be aware of this communication and to work with their noncore customers to monitor supply versus usage, and prepare for this possible scenario. If you have questions, please contact your CGT Sales or Account Services Representative.