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2008 Electric/Gas Communications Workshop:Communications with Natural Gas Sector

2008 Electric/Gas Communications Workshop:Communications with Natural Gas Sector

George SnyderDirector, Capacity Services, Scheduling & Volume Management

George SnyderDirector, Capacity Services, Scheduling & Volume Management

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Agenda

• Spectra Energy Overview– System View– Power Plant Attachment

• Scheduling and Capacity Management

• Posting– Critical Notices– Order 698– Informational Posting

• Spectra Energy Overview– System View– Power Plant Attachment

• Scheduling and Capacity Management

• Posting– Critical Notices– Order 698– Informational Posting

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Spectra Energy Transmission System2007 Natural Gas Throughput 3.6 TcfMiles of Transmission Pipe 17,500Miles of Gathering & Processing Pipe 58,500Miles of Distribution Pipe 35,000Storage Capacity 265 BcfRetail Customers 1.3 million

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Spectra Energy TransmissionPower Plant Attachments

Attached Megawatts (MW) 27,586

Total Max Load (MDth/d) 6,308

Total Contracted (MDth/d)Mainline Transportation 996

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Northeast Region

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Power Generation Locations

AGT

Power Generator Meter

MARITIMES & NORTHEAST PIPELINE42 BANGOR GAS - Bucksport 3001743 CASCO BAY EN CASCO BAY 3000944 MAINE NAT GS MN CALPINE 3001945 NEWINGTON EN Newington Power 3002246 PUB SERV NH - Granite State 30007

ALGONQUIN GAS TRANSMISSION47 ANP BELLINGHHAM ENERGY 0081448 NE ENERGY Bellingham 00094

CMEEC -Pierce 0083153 CANAL ELECTRIC, Barnstable 0080649 BG DIGHTON BG Dighton Power 0081565 FORE RIVER WEYMOUTH 0080358 LAKE ROAD PG&E Lake Road 0081755 NRG PWR MKTG - Middletown, 0081052 MILLFORD POW Enron Power 0080150 JAS A GOODMA Tiverton 0081663 WAL ENER PWR Wallingford 0082051 DARTMOUTH Power 0009356 OCEAN STATE Ocean St 0009557 VIR POWE EN Brayton Pt. 0009059 VIR POWE EN Manchester ST 0008760 BOS GAS Braintree Potter St 0008154 YANKEE GAS Montiville 0005961 O&R UTIL Stony Point 0004062 TAUNTON MUNI TMPL 0081264 BAY STATE West Medway 00086N/A Not Directly Connected to AGT N/A

Total Megawatt output 13535Total Gas requirement 3056

Total Firm Main Line Capacity Held 253

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Algonquin Gas TransmissionSystem Map

MA

CTNY

NJ

RI

PADeliveries Receipts

Compressor Stations

Gas Interconnect Locations

LongIsland

TRANSCOTEXAS EASTERN

COLUMBIA

IROQUOIS

TENNESSEE GAS

NSTAR

TEXAS EASTERN

TENNESSEE GAS

Burrillville

Chaplin

Cromwell

Southeast

Stony Point

Hanover

TENNESSEE GAS

COLUMBIA

DISTRIGAS

MARITIMES & NORTHEAST

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Firm Priorities of Service

• Algonquin 1 Primary (receipt and delivery)2 Secondary (either receipt or

delivery) all within contract path3A Secondary restriction of an out

of path service request within the contract path

3B Secondary restriction of an out of path service request outside of contract path

• Algonquin 1 Primary (receipt and delivery)2 Secondary (either receipt or

delivery) all within contract path3A Secondary restriction of an out

of path service request within the contract path

3B Secondary restriction of an out of path service request outside of contract path

• Maritimes1 Primary (receipt and delivery)2 Secondary within path (requests

for service at points with firm entitlements will have preference over requests at points without firm entitlements)

3 Secondary out of path (requests for service at points with firm entitlements will have preference over requests at points without firm entitlements)

• Maritimes1 Primary (receipt and delivery)2 Secondary within path (requests

for service at points with firm entitlements will have preference over requests at points without firm entitlements)

3 Secondary out of path (requests for service at points with firm entitlements will have preference over requests at points without firm entitlements)

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Firm Priorities of Service (continued)

• Texas Eastern1 Primary (receipt to delivery)2 Secondary receipt to primary delivery (typically pool sourced

gas)3 Receipt to secondary delivery entirely within path4A Secondary out of path when restriction occurs within the

contract path4B Secondary out of path when restriction occurs outside of

contract path.

• Texas Eastern1 Primary (receipt to delivery)2 Secondary receipt to primary delivery (typically pool sourced

gas)3 Receipt to secondary delivery entirely within path4A Secondary out of path when restriction occurs within the

contract path4B Secondary out of path when restriction occurs outside of

contract path.

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Scheduling Timeline• Spectra Energy PipesSpectra Energy Pipes

– 11:30 AM for next gas day – Hourly once Timely has been scheduled

• This usually begins by 2 or 3 PM CCT• Allows for up to 43 scheduling opportunities for each gas day

– 19 prior to gas flow– 24 within day

• Spectra Energy PipesSpectra Energy Pipes– 11:30 AM for next gas day – Hourly once Timely has been scheduled

• This usually begins by 2 or 3 PM CCT• Allows for up to 43 scheduling opportunities for each gas day

– 19 prior to gas flow– 24 within day

Timely 11:30 AM day 0 3:30 PM day 0 4:30 pm day 0 9:00 AM day 1

Evening 6:00 PM day 0 9:00 PM day 0 10:00 PM day 0 9:00 AM day 1

Intraday 1 10:00 AM day 1 1:00 PM day 1 2:00 PM day 1 5:00PM day 1

Intraday 2 5:00 PM day 1 8:00 PM day 1 9:00 PM day 1 9:00PM day 1

• NAESB Nomination CyclesNAESB Nomination Cycles NominationNomination Scheduled Scheduled Beginning of Beginning of Submission Confirmation QuantitiesSubmission Confirmation Quantities Gas Flow Gas Flow

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Capacity Nomination Queue Rules

• No-notice service, on a primary basis, can be nominated at any time

•AGT and TET reserve capacity for un-utilized primary no-notice

• Interruptible rate schedules cannot be bumped once the Intraday II nomination cycle (10:00 AM) begins

• No-notice service, on a primary basis, can be nominated at any time

•AGT and TET reserve capacity for un-utilized primary no-notice

• Interruptible rate schedules cannot be bumped once the Intraday II nomination cycle (10:00 AM) begins

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Algonquin Operationally Available Capacity Map

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Algonquin Peak Day Physical Flow Management

• AGT flexibility is limited to scheduled services on peak days

• Points without nominations cannot flow

• Imbalances are controlled daily so customers are assured of receiving their scheduled volumes

• AGT flexibility is limited to scheduled services on peak days

• Points without nominations cannot flow

• Imbalances are controlled daily so customers are assured of receiving their scheduled volumes

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Texas Eastern Peak Day Physical Flow Management

• Gas nominated from the Access Area takes up to 5 days to arrive to markets in M3. Incremental increases in M3 for a day are supported by operational use of storage until the gas shows up.

• East of Perulack/Chambersburg TET flexibility is limited to scheduled services on peak days.

• Points without nominations cannot flow

• Overtakes in the upstream portion of system deplete line pack and decrement the health of system.

• Imbalance control is critical to maintain long term system viability.

• Gas nominated from the Access Area takes up to 5 days to arrive to markets in M3. Incremental increases in M3 for a day are supported by operational use of storage until the gas shows up.

• East of Perulack/Chambersburg TET flexibility is limited to scheduled services on peak days.

• Points without nominations cannot flow

• Overtakes in the upstream portion of system deplete line pack and decrement the health of system.

• Imbalance control is critical to maintain long term system viability.

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Appendix: Algonquin and Texas Eastern Typical Postings

• Capacity Postings• Scheduled Volume• Restrictions

• Capacity Postings• Scheduled Volume• Restrictions

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Typical Algonquin Postings

• Critical Notices– Order 698 Information Required– Imbalance Warning– Critical Notice Warning– Restriction Posting– Critical Notice Posting

• Informational Postings– Order 698 Postings– Operationally Available capacity Maps– Meter Level Capacity Postings

• Critical Notices– Order 698 Information Required– Imbalance Warning– Critical Notice Warning– Restriction Posting– Critical Notice Posting

• Informational Postings– Order 698 Postings– Operationally Available capacity Maps– Meter Level Capacity Postings

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Order 698 Information

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Algonquin Order 698 Implementation

• Weather forecasts indicate an extended period of cold weather and associated high demand. Due to this high demand period, and to ensure reliability of service, Algonquin (AGT) requires all Power Plant Operators to provide information mandated by FERC Order No. 698. Information required includes the hourly consumption profile of directly connected power generation facilities effective 9:00 CT for Gas Day Saturday February 9, 2008 until further notice. All hourly profiles should be emailed to spectra698@spectraenergy.com or faxed to 713-989-1554 using the attached form.

• AGT is implementing these requirements under FERC Order 698 consistent with the letter sent to Power Plant Operators dated September 21, 2007 and as posted by AGT in its informational posting under Gas/Electric Coordination on October 31, 2007. Order 698 requires Power Plant Operators to communicate projected hourly flow schedules and variations from that schedule to the pipeline. In addition Power Plant Operators are required to adhere to nomination and scheduling timelines as mandated by the AGT FERC Gas Tariff. Power Plant Operators should take volumes commensurate with scheduled quantities.

• Also, as indicated in Order No 698, all gas fired Power Plant Operators directly connected to the Algonquin system are obligated to communicate material changes in circumstances that may affect hourly flow and must have Algonquin confirm whether the hourly flow deviations can be honored. If the deviations can not be honored, the operator must flow as per the previous agreed upon hourly profile.

• In addition, Electric transmission operators and associated gas fired Power Plant Operators are reminded of the requirement to receive critical notices and operational flow orders from AGT.

• Weather forecasts indicate an extended period of cold weather and associated high demand. Due to this high demand period, and to ensure reliability of service, Algonquin (AGT) requires all Power Plant Operators to provide information mandated by FERC Order No. 698. Information required includes the hourly consumption profile of directly connected power generation facilities effective 9:00 CT for Gas Day Saturday February 9, 2008 until further notice. All hourly profiles should be emailed to spectra698@spectraenergy.com or faxed to 713-989-1554 using the attached form.

• AGT is implementing these requirements under FERC Order 698 consistent with the letter sent to Power Plant Operators dated September 21, 2007 and as posted by AGT in its informational posting under Gas/Electric Coordination on October 31, 2007. Order 698 requires Power Plant Operators to communicate projected hourly flow schedules and variations from that schedule to the pipeline. In addition Power Plant Operators are required to adhere to nomination and scheduling timelines as mandated by the AGT FERC Gas Tariff. Power Plant Operators should take volumes commensurate with scheduled quantities.

• Also, as indicated in Order No 698, all gas fired Power Plant Operators directly connected to the Algonquin system are obligated to communicate material changes in circumstances that may affect hourly flow and must have Algonquin confirm whether the hourly flow deviations can be honored. If the deviations can not be honored, the operator must flow as per the previous agreed upon hourly profile.

• In addition, Electric transmission operators and associated gas fired Power Plant Operators are reminded of the requirement to receive critical notices and operational flow orders from AGT.

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Example: Imbalance Warning Posting

Weather forecasts continue to indicate cold weather over the AGT market area for the balance of the week. AGT will experience near peak operating conditions and have limited operating flexibility for the next several days. It is therefore imperative that shippers and point operators remain in balance on a daily basis. No due shipper nominations will be accepted anywhere on the AGT system until further notice.

Weather forecasts continue to indicate cold weather over the AGT market area for the balance of the week. AGT will experience near peak operating conditions and have limited operating flexibility for the next several days. It is therefore imperative that shippers and point operators remain in balance on a daily basis. No due shipper nominations will be accepted anywhere on the AGT system until further notice.

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Example: Critical Notice Warning• As posted on December 28, due to the weather forecasts and anticipated demand

beginning Tuesday January 1, 2008, AGT urges all shippers and point operators to carefully review demands for gas and schedule gas consistent with daily needs and to tender and receive gas consistent with confirmed nominations. AGT believes that if shippers and point operators limit due pipe imbalances to 2% or less of scheduled deliveries to actual deliveries, the necessity of enforcing restrictions contemplated by the AGT tariff to maintain service to firm customers will be avoided. If AGT does enact such measure, any deliveries that exceed scheduled deliveries by greater than two percent (2%) will be deemed unauthorized quantities and will be charged a penalty equal to three times the Gas Daily posting for the High Common price for the "AGT Citygate" posting per Dth on the day the violation occurred as indicated by Section 31 of Algonquin’s tariff.

Furthermore, beginning on Tuesday January 1, 2008, AGT will not allow imbalance gas in excess of scheduled deliveries to be taken off AGT, until further notice. More specifically, due shipper make-up and/or due pipe creation will not be allowed.

Shippers and point operators are reminded of the importance of monitoring AGT’s postings during this period of heavy demand on the system.

• As posted on December 28, due to the weather forecasts and anticipated demand beginning Tuesday January 1, 2008, AGT urges all shippers and point operators to carefully review demands for gas and schedule gas consistent with daily needs and to tender and receive gas consistent with confirmed nominations. AGT believes that if shippers and point operators limit due pipe imbalances to 2% or less of scheduled deliveries to actual deliveries, the necessity of enforcing restrictions contemplated by the AGT tariff to maintain service to firm customers will be avoided. If AGT does enact such measure, any deliveries that exceed scheduled deliveries by greater than two percent (2%) will be deemed unauthorized quantities and will be charged a penalty equal to three times the Gas Daily posting for the High Common price for the "AGT Citygate" posting per Dth on the day the violation occurred as indicated by Section 31 of Algonquin’s tariff.

Furthermore, beginning on Tuesday January 1, 2008, AGT will not allow imbalance gas in excess of scheduled deliveries to be taken off AGT, until further notice. More specifically, due shipper make-up and/or due pipe creation will not be allowed.

Shippers and point operators are reminded of the importance of monitoring AGT’s postings during this period of heavy demand on the system.

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Example: Critical Notice Posting• Based upon current and forecast operating conditions, Algonquin has

determined that, to mitigate conditions which would threaten the ability of Algonquin to maintain service to firm customers, it is imperative that Shippers and Point Operators remain in balance on a daily basis.

• Beginning with gas day [day of week] , [month and day], 2008 and until further notice from Algonquin, Shippers and Point Operators must limit the due pipeline daily variance between scheduled deliveries and actual deliveries to two percent (2%) or less. Algonquin notifies all parties that any quantity of gas outside the two percent (2%) due pipeline tolerance will be deemed unauthorized quantities which will be charged a $15 per Dth penalty contemplated by Section 31 of Algonquin’s tariff. All Shippers and Point Operators must carefully review their need for gas and must tender and receive gas consistent with their confirmed nominations.

• Algonquin currently believes that maintaining a balance on a daily basis between scheduled and actual volumes will avoid the necessity of enforcing hourly restrictions or other measures to protect system integrity and firm service. However, if necessary to protect system integrity and prevent impairment of firm service, Algonquin will take further actions as permitted by Algonquin’s FERC Gas Tariff.

• Based upon current and forecast operating conditions, Algonquin has determined that, to mitigate conditions which would threaten the ability of Algonquin to maintain service to firm customers, it is imperative that Shippers and Point Operators remain in balance on a daily basis.

• Beginning with gas day [day of week] , [month and day], 2008 and until further notice from Algonquin, Shippers and Point Operators must limit the due pipeline daily variance between scheduled deliveries and actual deliveries to two percent (2%) or less. Algonquin notifies all parties that any quantity of gas outside the two percent (2%) due pipeline tolerance will be deemed unauthorized quantities which will be charged a $15 per Dth penalty contemplated by Section 31 of Algonquin’s tariff. All Shippers and Point Operators must carefully review their need for gas and must tender and receive gas consistent with their confirmed nominations.

• Algonquin currently believes that maintaining a balance on a daily basis between scheduled and actual volumes will avoid the necessity of enforcing hourly restrictions or other measures to protect system integrity and firm service. However, if necessary to protect system integrity and prevent impairment of firm service, Algonquin will take further actions as permitted by Algonquin’s FERC Gas Tariff.

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Example: Restriction Posting

• The following restrictions will be in place on the Algonquin Gas Transmission (AGT) system for Monday, January 28, 2008:

• AGT has restricted and sealed nominations flowing through Stony Point compressor station. No increases in nominations flowing through Stony Point, except for Firm No-Notice nominations, will be accepted.

• Delivery nominations have exceeded receipt nominations at the Tennessee Gas Pipeline interconnect at Mahwah (Meter station 00201), a physical receipt meter station. As a result, AGT has restricted delivery nominations to Mahwah. No increases in deliveries to Mahwah will be accepted.

• Customers are advised that capacity may become available as the nomination and confirmation process continues throughout the day.

• The following restrictions will be in place on the Algonquin Gas Transmission (AGT) system for Monday, January 28, 2008:

• AGT has restricted and sealed nominations flowing through Stony Point compressor station. No increases in nominations flowing through Stony Point, except for Firm No-Notice nominations, will be accepted.

• Delivery nominations have exceeded receipt nominations at the Tennessee Gas Pipeline interconnect at Mahwah (Meter station 00201), a physical receipt meter station. As a result, AGT has restricted delivery nominations to Mahwah. No increases in deliveries to Mahwah will be accepted.

• Customers are advised that capacity may become available as the nomination and confirmation process continues throughout the day.

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Algonquin Timely Cycle Scheduled Volumes

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Example: Critical Posting

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Infopost front door for Algonquin

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Algonquin Meter Level Capacity Postings

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AGT Operationally Available Capacity Map

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Typical Texas Eastern Postings

• Imbalance Warnings– Order 698 Information Required– Imbalance Warning– Restriction Posting– Timely Nomination Posting

• Informational Postings– Order 698 Postings– Operationally Available capacity Maps– Meter Level Capacity Postings

• Imbalance Warnings– Order 698 Information Required– Imbalance Warning– Restriction Posting– Timely Nomination Posting

• Informational Postings– Order 698 Postings– Operationally Available capacity Maps– Meter Level Capacity Postings

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Texas Eastern Imbalance Warning• As posted on January 10th, due to the impending cold weather and high demand,

Texas Eastern Transmission (TE) requires, effective immediately, shippers to schedule receipts commensurate with scheduled deliveries, and point operators perform according to nominated volumes. TE will restrict due pipe creation and due shipper make-up, regardless of the shippers cumulative imbalance, beginning on Monday January 14, 2008 until further notice.

• Additionally, TABS-1 parties are expected to schedule their pools balanced. TE may be required to force balance short TABS-1 pools and schedule receipt point operators not performing to nominated volumes. TE will utilize any provision of its tariff to ensure system integrity including the issuance of OFOs. This warning will remain in effect until further notice.

• Shipper and point operators are reminded of the importance of monitoring TE’s postings during this period of heavy demand on the system.

• As posted on January 10th, due to the impending cold weather and high demand, Texas Eastern Transmission (TE) requires, effective immediately, shippers to schedule receipts commensurate with scheduled deliveries, and point operators perform according to nominated volumes. TE will restrict due pipe creation and due shipper make-up, regardless of the shippers cumulative imbalance, beginning on Monday January 14, 2008 until further notice.

• Additionally, TABS-1 parties are expected to schedule their pools balanced. TE may be required to force balance short TABS-1 pools and schedule receipt point operators not performing to nominated volumes. TE will utilize any provision of its tariff to ensure system integrity including the issuance of OFOs. This warning will remain in effect until further notice.

• Shipper and point operators are reminded of the importance of monitoring TE’s postings during this period of heavy demand on the system.

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TE Order 698 Requirement• Weather forecasts indicate an extended period of cold weather and associated high

demand. Due to this high demand period, and to ensure reliability of service, Texas Eastern (TE) requires all Power Plant Operators to provide information mandated by FERC Order No. 698. Information required includes the hourly consumption profile of directly connected power generation facilities effective 9:00 CT for Gas Day Wednesday January 16, 2007 until further notice. All hourly profiles should be emailed to spectra698@spectraenergy.com or faxed to 713-989-1554 using the attached form.

• TE is implementing these requirements under FERC Order 698 consistent with the letter sent to Power Plant Operators dated September 21, 2007 and as posted by TE in its informational posting under Gas/Electric Coordination on October 31, 2007. Order 698 requires Power Plant Operators to communicate projected hourly flow schedules and variations from that schedule to the pipeline. In addition Power Plant Operators are required to adhere to nomination and scheduling timelines as mandated by the TE FERC Gas Tariff. Power Plant Operators should take volumes commensurate with scheduled quantities.

• Weather forecasts indicate an extended period of cold weather and associated high demand. Due to this high demand period, and to ensure reliability of service, Texas Eastern (TE) requires all Power Plant Operators to provide information mandated by FERC Order No. 698. Information required includes the hourly consumption profile of directly connected power generation facilities effective 9:00 CT for Gas Day Wednesday January 16, 2007 until further notice. All hourly profiles should be emailed to spectra698@spectraenergy.com or faxed to 713-989-1554 using the attached form.

• TE is implementing these requirements under FERC Order 698 consistent with the letter sent to Power Plant Operators dated September 21, 2007 and as posted by TE in its informational posting under Gas/Electric Coordination on October 31, 2007. Order 698 requires Power Plant Operators to communicate projected hourly flow schedules and variations from that schedule to the pipeline. In addition Power Plant Operators are required to adhere to nomination and scheduling timelines as mandated by the TE FERC Gas Tariff. Power Plant Operators should take volumes commensurate with scheduled quantities.

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A Busy Day at TET

• The following restrictions will be in place on the Texas Eastern (TE) system for gas day Thursday, January 3, 2008:

• Texas Eastern has restricted all IT-1 activity flowing through Perulack / Chambersburg, PA. TE will also not allow any increases in receipts sourced upstream of Perulack / Chambersburg for delivery downstream of Perulack Chambersburg except for no-notice services.

• TE has restricted and sealed nominations sourced on the Leidy Line for deliveries off the Leidy Line. No increases in receipt nominations will be accepted on the Leidy Line.

• TE has restricted and sealed a portion of IT sourced between Opelousas, LA and Little Rock, AK for delivery outside of that area. No increase of receipts between Opelousas and Little Rock for delivery outside of that area will be accepted.

• TE has restricted and sealed receipts sourced at Monroe Station, LA. No increases in receipts sourced at Monroe will be accepted.

• TE has scheduled and sealed nominations flowing through Fagus, AK. Increases in nominations for receipts sourced between Little Rock and Fagus for delivery downstream of Fagus will not be accepted.

• TE has scheduled and sealed nominations flowing through Circleville. Increases in nominations for receipts sourced between Little Rock, AK and Circleville, OH for delivery downstream of Circleville will not be accepted.

• Customers are advised that capacity may become available as the nomination and confirmation process continues through the day.

• Please contact your Operations Account Manager if you have any questions.

• The following restrictions will be in place on the Texas Eastern (TE) system for gas day Thursday, January 3, 2008:

• Texas Eastern has restricted all IT-1 activity flowing through Perulack / Chambersburg, PA. TE will also not allow any increases in receipts sourced upstream of Perulack / Chambersburg for delivery downstream of Perulack Chambersburg except for no-notice services.

• TE has restricted and sealed nominations sourced on the Leidy Line for deliveries off the Leidy Line. No increases in receipt nominations will be accepted on the Leidy Line.

• TE has restricted and sealed a portion of IT sourced between Opelousas, LA and Little Rock, AK for delivery outside of that area. No increase of receipts between Opelousas and Little Rock for delivery outside of that area will be accepted.

• TE has restricted and sealed receipts sourced at Monroe Station, LA. No increases in receipts sourced at Monroe will be accepted.

• TE has scheduled and sealed nominations flowing through Fagus, AK. Increases in nominations for receipts sourced between Little Rock and Fagus for delivery downstream of Fagus will not be accepted.

• TE has scheduled and sealed nominations flowing through Circleville. Increases in nominations for receipts sourced between Little Rock, AK and Circleville, OH for delivery downstream of Circleville will not be accepted.

• Customers are advised that capacity may become available as the nomination and confirmation process continues through the day.

• Please contact your Operations Account Manager if you have any questions.

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Timely Nominations

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For Texas Eastern

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Texas Eastern System OCM

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Texas Eastern East End OCM

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Texas Eastern Meter Level Capacity Posting

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698 Power Plant Profile698 Power Plant Profile

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