Overproduction

Continuing to experience high linepack due to overproduction, low systemwide demand and limited storage injection capacity, Tennessee said it expects to keep the OFO Balancing Alert that took effect Saturday (see Daily GPI, Nov. 19) in place until at least next Monday.

Noting it had advised shippers earlier in the week about high linepack problems due to overproduction, reduced demand and limited storage injection capacity, Tennessee said Wednesday a systemwide OFO Balancing Alert will take effect with today’s gas day. Positive daily imbalances that exceed 2% (or 500 dekatherms, whichever is greater) over nominated volumes will be charged $15 plus an index price for each dekatherm outside of the designated tolerance. Penalties will not apply to negative imbalances. The OFO is expected to remain in effect until testing of the Bear Creek Storage Field is completed May 1. Tennessee also said that based on current and anticipated future conditions, its ban on 500 Leg receipts with a dew point higher than 20 degrees F. and without proof of processing will remain in effect through the end of May.