Columbia Gulf Transmission Company
Second Revised Volume No. 1
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Effective Date: 08/01/2008, Docket: RP07-174-000, Status: Suspended
Original Sheet No. 216A Original Sheet No. 216A : Suspended
GENERAL TERMS AND CONDITIONS (Continued)
(d) Transportation Charges for Inter-Zone Netting and Trading. A Shipper that nets or trades
imbalances across rate zones will be assessed the appropriate transportation charges and retainage for the
required movement of gas.
(e) Netting and Trading Process. With the exception of the off-system zone on Transporter’s
system, the process for netting and trading will follow this sequence:
(1) Shippers are permitted to net Cumulative Monthly Imbalances within rate zones.
(2) Shippers are permitted to trade Cumulative Monthly Imbalance within rate zones, and can
voluntarily move gas between rate zones to collect imbalances for trading purposes. Transportation
across rate zones will be subject to the appropriate transportation charges and retainage.
With respect to Netting and Trading, a Shipper that is long one month and short the next month
cannot offset the two months via netting or trading. Each month’s imbalance can only be offset with
an opposite imbalance incurred for the same month.
(3) If any Cumulative Monthly Imbalances remain in any rate zone that Shippers have not
cleared by the 17th Business Day of the month following, Transporter will net those Cumulative
Monthly Imbalances to the least-cost rate zone (i.e., the rate zone that results in the lowest
transportation charge to the Shipper), based on the applicable maximum transportation rate and
retainage across the rate zones.
(4) Any Shipper with a remaining Cumulative Monthly Imbalance is cashed-out by Transporter
in accordance with Section 19.6.
(f) Correction of Imbalances During the Month. Shipper or Shipper’s agent may nominate
transactions (in accordance with GTC Section 6) during the course of the month in order to correct
imbalances. Third parties may offer imbalance management services to Shippers on Transporter’s system.
Transporter’s ability to receive or deliver imbalance quantities will depend upon Transporter’s physical
operations, and Transporter will not be obligated to allow receipt or delivery of quantities for the
resolution of imbalances if Transporter determines that activity would jeopardize the operational integrity
of its system.
(g) Cash Settlement to Eliminate Imbalances for Prior Period Adjustments (“PPA”). Subject to the
rights in Sections 19.5(b)-(e), Netting and Trading, Transporter will provide an invoice credit for PPA
quantities that are over-received and an invoice charge for PPA quantities that are over-delivered. If the
PPA imbalance is in the opposite position than the original imbalance (i.e. original position was short and
PPA was long or vice versa), than the PPA imbalance will be credited or charged at the originally charged
“Buy” or “Sell” price described in Section 19.6, up to the original imbalance quantities. If an imbalance
remains after the original imbalance is reversed, then the remaining PPA imbalance will be credited or
charged at the index “Midpoint” price. If the PPA imbalance is the same position as the original imbalance,
or if there was no original imbalance, then the PPA imbalance will be credited or charged at the index
(h) Determination of “Index Midpoint” Price. For the month in which the imbalance occurred, the
index “Midpoint” price per Dekatherm used in the calculation will be the arithmetic average of the original
month’s “Buy” and the “Sell” price, multiplied by a factor of 1.0