Reliant Gets OK for Flexible Nominations
FERC last week conditionally approved Reliant Energy Gas
Transmission's proposal to allow shippers on its system to make
more liberal nominations.
The order, which was voted out Wednesday, would allow Reliant
shippers to submit nominations any time of the day to be effective
at the top of each hour, provided the nominations are made at least
60 minutes in advance. The move towards hourly nominations reflects
the increasingly close alliance between the natural gas and power
generation markets, Reliant said.
To implement the flexible proposal, Reliant sought a waiver of
the Gas Industry Standards Board's (GISB) rules with respect to
nomination timelines and cycles. But the Commission said this
wasn't necessary since Reliant's proposal "satisfies and goes
beyond" the existing GISB standards for pipeline nominations.
The GISB standards represent minimum requirements for pipelines,
the FERC order noted. "Pipelines may go beyond these minimum
requirements and.offer more nomination opportunities than those
required by GISB. However, this does not require or justify a
FERC granted Reliant a "limited waiver" of GISB bumping
standards enabling Reliant firm shippers to bump interruptible
shippers consistent with the hourly nomination cycle. However, it
rejected the pipeline's request for bumping IT shippers after 5
p.m. on the day of gas flow. Moreover, it refused to waive the GISB
rule requiring bumping that affects multiple pipelines to occur at
"grid-wide synchronization times only."
FERC "finds that waiver of this standard could create imbalances
on other pipeline systems and adversely impact synchronization of
pipeline operations across the grid. Therefore, while Reliant may
bump interruptible shippers on its own system, it may not bump such
shippers outside of the GISB timeline if such bumping affects
transactions on other pipelines," the order said.
The Commission also rejected Reliant's request to remove the
currently effective GISB nomination timeline from its tariff.
"Since Reliant's system interfaces with those of other pipelines,
it is important that shippers moving gas across Reliant's system
have a mechanism in place to coordinate with adjacent pipeline
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