With its proposed valet service, Transwestern Pipeline isattempting to profit from the coordination problems that haveplagued the nationwide transportation grid since the Gas IndustryStandards Board’s intra-day nominations timeline was implemented inearly November, Dynegy Inc. says. It has asked FERC to eitherreject the service or modify it.

Since the Nov. 2 implementation, “there’s been a lot of disarray- a lot of nominations have been cut at pipe-to-pipe interconnectsand at pipeline-to-point operators, such as LDC delivery points.There’s just been real confusion and lack of coordination, andTranswestern seems to be trying to profit from that,” contendsKathy Patton, director and regulatory counsel for Dynegy.

With interconnect operators unable to ensure confirmations,shippers have been looking to other points to transfer supplies toone another. In this atmosphere, Transwestern has proposed itsvalet service, which Patton says would create title-transfer (orvalet) points that shippers could use to transfer their suppliesfor a separate fee.

“Rather than spending its time inventing new services in orderto bilk its customers for additional fees, Transwestern shouldaddress the real problem at hand, that of ensuring that shipperconfirmations at interconnects are confirmed in a timely manner,”the Houston-based marketer said in its protest at FERC.

“If shippers are able to rely on their nominations atinterconnects, there will be no need to utilize valet points toconduct title transfers. Therefore, rather than approving thisservice, the better solution would be for the Commission to requireTranswestern (and other pipelines) to concentrate on fixing thesynchronization problems at its individual interconnects,” thecompany said.

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