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Natural Gas StorageSoCalGas 2008 Storage Open SeasonNatural Gas Storage Rights for Apr’08 Storage YearBeginning Thursday, January 24, 2008, SoCalGas is offering natural gas storage capacity rights (inventory, injection, and withdrawal) for the storage year starting April 1, 2008. The rights will be sold through bilateral negotiations. The following firm capacities are available for the 2008 season:
The use of the storage capacity is governed by the G-TBS tariff, and the Transaction Based Storage Service Agreement, which is Schedule I, to the Master Services Contract. On December 6, 2007, the California Public Utilities Commission (CPUC) approved Decision 07-12-019, modifying natural gas operations and service offerings. Some important changes to storage services are as follows:
SoCalGas filed the implementation tariffs for these changes on January 22, 2008 for CPUC approval. For storage negotiations prior to the approval of the implementation tariffs, SoCalGas will abide by the proposed rate caps, eliminate the storage transmission charge/credit, and level reservation fees for all customers. Other changes, such as deal posting, secondary market trading, interruptible priorities, and fifth nomination cycle, will not occur until after tariffs are approved and system modifications enabling these are completed. In addition, the implementation of Firm Access Rights (FAR), scheduled for October 1, 2008, will move the location for storage receipts and deliveries from the “California border” to the SoCalGas City Gate. If you would like to acquire storage services, then submit a written non-binding bid, preferably via email, specifying the desired levels of firm inventory, injection, and withdrawal capacities and the annual demand charge you are willing to pay. The demand charge should be stated as a total annual amount or a price per decatherm of inventory capacity. Only capacity terms, as shown above, will be considered at this time. To submit a bid or to discuss the storage program, contact Gwoon Tom by phone at (213) 244-3692 or by email at gtom@semprautilities.com. Overview on Natural Gas StorageSoCalGas is the nation’s largest natural gas distribution utility, providing reliable, safe and efficient natural gas service to a population of more than 13 million. Underground storage of natural gas plays a vital role in balancing the region’s energy supply and demand. SoCalGas owns and operates 4 underground storage facilities located at Aliso Canyon, Honor Rancho, Goleta and Playa Del Rey. These facilities play a vital role in balancing the region’s energy supply and demand. Of our total 131.1 billion cubic feet (Bcf) of storage capacity, 79 Bcf is allocated to our Core residential, small industrial and commercial customers. About 5 Bcf of space is used for system balancing. The remaining capacity is available to other customers. Benefits of underground storage
Storage can be used to avoid imbalance penalties from monthly or daily balancing violations. To avoid the suspension of gas supplies from a curtailment event, storage will move customers with firm withdrawal service back to the number 7 level of the curtailment queue. Storage can be used to take advantage of the swings in gas prices to generate profits or reduce costs. Storage can also help customers maintain non-core rate eligibility, eliminate the hassle that is associated with other back up fuel systems, and help keep plants running and delivery schedules on track. For Further Information on SoCalGas' Storage Programs
Last Updated 1/31/2008
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