Beginning Thursday, November 13, 2008, SoCalGas will offer natural gas storage capacity rights (inventory, injection, and withdrawal) for the storage year starting April 1, 2009 for whole-year terms of up to three years. The rights will be sold through bilateral negotiations.
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:
On June 18, 2008, the CPUC approved Advice No. 3818-A establishing the tariffs and implementation schedule for the modifications of natural gas operations and service offerings. Full implementation of the Electronic Bulletin Board (EBB) for secondary market trading of storage capacity, price-based prioritization of interruptible injection and withdrawal rights, and fifth cycle balancing may not be available for 16 months from the approval date. Until the EBB is fully developed, SoCalGas will offer secondary market trading of storage capacity through a manual assignment process requiring the assignor to retain liability for charges.
In addition, the implementation of Firm Access Rights (FAR) on October 1, 2008, moved the location for storage receipts and deliveries from the “California border” to the SoCalGas-Citygate.
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 dollar 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.
SoCalGas 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.
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.
Gwoon Tom, Storage Products Manager
(213) 244-3692
gtom@semprautilities.com
Dale Borhaug, Sr. Storage Products Advisor
(213) 244-2824
dborhaug@semprautilities.com
Terry Ross, Storage Product Advisor
(213) -244-3824
tross@semprautilities.com
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