Systemwide

Transco will lift the only OFO it has ever issued, a systemwide Imbalance Operational Flow Order to all buyers that took effect Dec. 1 (see Daily GPI, Nov. 30), effective with Friday’s gas day. The order, which had penalties of $25/Dth for daily imbalances of at least 1,000 dekatherms exceeding a 5% tolerance over nominated volumes, was effective in easing operational concerns about system integrity, it said. Upon termination of the OFO, Transco also will return pool scheduling tolerances to 4% and will resume accepting receipt make-up nominations from shippers with negative (i.e., due the pipeline) imbalances.

Transco declared what a spokeswoman confirmed is its first OFO ever. The systemwide Imbalance Operational Flow Order becomes effective Saturday until further notice. Transco noted that on Monday it had issued a System Imbalance Notice advising of an “unacceptable level” of positive transportation imbalances, and followed up Tuesday with a request that shippers ensure that physical receipts and deliveries were in balance on a daily basis and that they reduce any positive imbalances immediately. However, effective voluntary compliance was inadequate, the pipeline said, and it could “no longer tolerate daily positive imbalances in the face of warmer-than-normal temperatures expected for its market area.” The OFO requires that positive imbalances (i.e., more receipts into the system than deliveries) of 5% and at least 1,000 dekatherms above nominations will be subject to penalties of $25/Dth for the excess.

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.

Pacific Gas & Electric declared a systemwide Stage 3 high-inventory OFO for today with $5/Dth penalties for positive daily imbalances exceeding a 5% tolerance. Southern California Gas extended a similar Overnominations Day notice that had begun Thursday through at least today. SoCal’s OFO penalizes shippers for delivering into the system more than 110% of their actual usage. Violators pay a buyback tariff that is the lower of either SoCal’s lowest incremental gas purchase cost or 50% of its core subscription procurement charge.

Pacific Gas & Electric issued a systemwide Stage 2 high-inventory OFO for Saturday. Penalties were $1/Dth for positive daily imbalances exceeding what traders considered a very lenient tolerance of 11%. SoCalGas extended an Overnominations Day declaration into a second day Saturday.

Pacific Gas & Electric declared a systemwide Stage 2 high-inventory OFO for Saturday with $1/Dth penalties for positive daily imbalances exceeding a 3% tolerance.

Pacific Gas & Electric issued a systemwide Stage 3 high-inventory OFO for Saturday. It carries penalties of $5/Dth for positive daily imbalances exceeding a 9% tolerance.

Expecting linepack to exceed its maximum target levels over the weekend, Pacific Gas & Electric issued a systemwide high-inventory OFO for Saturday. The order had $5/Dth penalties for positive daily imbalances exceeding a 6% tolerance.

Projecting linepack sinking below its minimum target levels over the next few days, Pacific Gas & Electric issued a systemwide Stage 3 low-inventory OFO for today. The OFO carries penalties of $5/Dth. The tolerance for negative daily imbalances is minus 2%.