Penalties

FERC Conference Explores Reasonable Conduct, Business Practices

The threat of after-the-fact rules, prosecutions and penalties has become so great that the rule-of-thumb on many trading floors is, “If you can make money at it, don’t do it,” industry witnesses told a Federal Energy Regulatory Commission technical conference on standards of conduct and market behavior rules for the natural gas and electric markets in Chicago Friday.

May 9, 2005

Transportation Notes

Pacific Gas & Electric issued a systemwide Stage 2 high-inventory OFO (with $1/Dth penalties for exceeding a positive daily imbalance tolerance of 5%) for Sunday, then lifted it Monday before reinstating the Stage 2 OFO with identical conditions for Tuesday’s gas day.

May 3, 2005

Transportation Notes

Pacific Gas & Electric issued a systemwide Stage 2 high-inventory OFO that takes effect Friday. It carries penalties of $1/Dth for exceeding a 5% tolerance on positive daily imbalances.

March 11, 2005

Transportation Notes

Sonat implemented an OFO Type 6 for short imbalances effective Monday until further notice. Tiered penalties apply to customers falling short of scheduled receipts by 2% or 200 dekatherms, whichever is greater. Those running long imbalances will not be penalized.

January 19, 2005

Transportation Notes

Sonat is implementing an OFO Type 6 Tuesday. Tiered penalties ranging from $1/Dth to $15/Dth will apply to net short imbalances on its contiguous system exceeding a tolerance of 2% or 200 dekatherms, whichever is less. In addition, Sonat notified shippers in several system groups Sunday that it would be allocating/limiting interruptible capacity starting either Monday or Tuesday, depending on the group. See the bulletin board for details.

December 14, 2004

Transportation Notes

Sonat is implementing an OFO Type 6 Tuesday. Tiered penalties ranging from $1/Dth to $15/Dth will apply to net short imbalances on its contiguous system exceeding a tolerance of 2% or 200 dekatherms, whichever is less. In addition, Sonat notified shippers in several system groups Sunday that it would be allocating/limiting interruptible capacity starting either Monday or Tuesday, depending on the group. See the bulletin board for details.

December 14, 2004

Transportation Notes

PG&E called a high inventory systemwide operational flow order for Sunday and Monday with 0% and 5% tolerances, respectively, and $5/Dth penalties. No OFO was in effect for Tuesday as of 4 p.m. EST Monday.

November 9, 2004

Transportation Notes

PG&E called a high inventory systemwide operational flow order for Sunday and Monday with 0% and 5% tolerances, respectively, and $5/Dth penalties. No OFO was in effect for Tuesday as of 4 p.m. EST Monday.

November 9, 2004

Transportation Notes

Pacific Gas & Electric is implementing Wednesday a new systemwide Stage 3 high-inventory OFO. It will have penalties of $5/Dth for exceeding a 2% tolerance for positive daily imbalances.

October 27, 2004

Transportation Notes

Pacific Gas & Electric is implementing Wednesday a new systemwide Stage 3 high-inventory OFO. It will have penalties of $5/Dth for exceeding a 2% tolerance for positive daily imbalances.

October 27, 2004