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Reliant Files 'In-Kind' Balancing Plan

Reliant Files 'In-Kind' Balancing Plan

Advancing its reputation as one of the more innovative pipelines in the industry when it comes to rate making, Reliant Energy Gas Transmission (REGT) submitted a rate filing with FERC that will give customers an 'in-kind' balancing option. The plan is part of to its Automatic Nomination Service (ANS), a 'just-in-time' supply management service.

Reliant was the first to file and get approved an hourly firm transportation service for power generators. In August the pipeline implemented another new rate schedule, its Internet-based AutoNom service, which was designed to communicate real-time consumption data so that end-users could improve management of supplies and deliveries. This new in-kind balancing option will provide another tool that can be used by AutoNom customers to eliminate the extra work and costs associated with tracking imbalances and cash-outs.

"Our objective with the AutoNom Service has been to use technology to simplify for our customers-especially the smaller customers-the day-to-day burdens associated with procuring and managing energy supplies," said Dale C. Earwood, president and chief operating officer of Reliant Energy Interstate Pipelines. "The new in-kind balancing option will allow customers simply to contract, start flowing gas and let the system do all of the work. In that way, we are letting customers turn back the clock operationally to a simpler time in our industry, without sacrificing any of the benefits of today's numerous supply choices in the marketplace," Earwood added.

REGT's Rate Schedule ANS uses electronic metering and electronic communication via the Internet to obtain and communicate up-to-the-minute information on deliveries at an end-user's facility. At various times throughout the day, REGT accesses this information, uses it to re-nominate receipts and deliveries for the shipper, and instantaneously communicates this information via e-mail to the shipper and its suppliers. With the election of the in-kind balancing option, REGT will resolve any customer imbalances without the need to resort to any cash-out mechanism. No rate is charged for basic Rate Schedule ANS service, although there will be a nominal fee associated with the election of the in-kind balancing option by non-maximum rate shippers.

Rate Schedule ANS is to be used in conjunction with the customer's firm or interruptible transportation service from REGT. Under the terms of the ANS rate schedule, an AutoNom customer will arrange for installation of electronic metering at the delivery point, if it is not already in place as it is at many locations. REGT will arrange for installation of the necessary electronic communication equipment and software.

Customers wanting information about this new service can contact Terri Williams, Manager of Transportation Services, at (318) 429-2993.

Reliant Energy owns one of the largest interstate natural gas pipeline networks in the mid-continent U.S., totaling 8,200 miles. The system connects through REGT's Perryville Hub transfer center in Louisiana. REGT and sister company, Mississippi River Transmission Corp., are affiliates of Reliant Energy. Together they transport 1 Tcf/year of gas as well as provide storage and related services.

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