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Notice Reduction Reason Codes March 8, 2011 As part of our March 10, 2011 Xpress Scheduling implementation (beginning Cycle 1 on March 9) of the new Xpress Scheduling system, we are introducing the following reduction reason codes: GQS, FMJ, PLM, and UPD (which are described in the list of all reduction reason codes, below). After some preliminary definitions, we have listed in alphabetical order, the reduction reason codes applied during capacity allocation. Then, we have listed the reduction reason codes as a result of the balancing processes. Please keep in mind that CIG Schedulers are always available to answer your questions if the reduction reason code does not clear up why your nomination was reduced. Just call the CIG NAS Hotline at 1-800-238-3764 and a representative will be on hand to help.
Definitions EPSQ (Elapsed Prorated Scheduled Quantity) - You‟ll see that some of the descriptions of the Reduction Reason Codes contain a phrase that says „EPSQ Rules apply.‟ EPSQ Elapsedprorated-scheduled quantity means that portion of the scheduled quantity that would have theoretically flowed up to the effective time of the Intraday Nomination being confirmed, based upon a cumulative uniform hourly quantity for each Nomination period affected (NAESB 1.2.12). In cycles 3 and 4, shippers cannot reduce their nominations below EPSQ unless prior written (or, system) approval is given by an NAS scheduler. Here is how EPSQ calculations are derived: EPSQ for cycle 3 equals 1/3 of cycle 2 final scheduled volumes, or C3 EPSQ = 1/3 C2. Example: Cycle 2 scheduled volume = 10,000 Mcf 10,000 x .3333 (or, 1/3) = 3,333 Mcf 3,333 Mcf is the C3 EPSQ EPSQ for Cycle 4 equals cycle 3 EPSQ plus ¼ of cycle 3 Scheduled Volume minus cycle 3 EPSQ, or C3 EPSQ + ¼ (C3 Sched - C3 EPSQ). Example: Cycle 2 scheduled volume = 10,000 Mcf Cycle 3 scheduled volume = 6,500 Mcf Cycle 3 EPSQ = 3,333 Mcf Cycle 4 EPSQ equals: C3 EPSQ of 3,333 Mcf PLUS ¼ of the C3 Sched Vol (6,500 Mcf) minus C3 EPSQ (3,333 Mcf) which is 3,167 Mcf multiplied by .25 (rounded) = 792 Mcf. C3 EPSQ of 3,333 Mcf plus 792 Mcf = 4,125 Mcf which is the C4 EPSQ.
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ISP (Intermediate Scheduling Point) - When we refer to „ISP‟s‟, we are referring to “Intermediate Scheduling Points” which are the points along the pipe where we establish capacity limits to control the flow of gas. You probably know ISP‟s as chokes or constraints. Ranking Order - If the cut originates on the supply side of a nomination, then the nomination‟s markets will be reduced based on the delivery ranks on the nomination. If the cut originates on the market side of a nomination, then the nomination‟s supply will be reduced based on the receipt ranks on the nomination.
Capacity Allocation Reduction Reason Codes BMP - Quantity Reduced Due To Bumping BMP is applied when a previously scheduled interruptible transportation nomination (in the Timely and/or Evening cycles) is reduced to allow a new (incremental) firm nomination to be scheduled in the Evening and/or Intraday 1 cycles. EPSQ rules apply in the Intraday 1 cycle (a BMP reduction is not allowed in the Intraday 2 cycle). If you see a BMP reduction reason code on your report, here are some suggestions: If your nomination has been bumped, you can assume there is not enough capacity to support your nom and the higher service level nom that bumped you. You can check the EBB to see where there is capacity available and change your nominated route to one that has available capacity. You can leave your nom in place and take the chance that capacity might open up in later cycles but currently, once capacity is taken in the early cycles, it tends to stay full throughout the day. Keep in mind that Poolers will see these kinds of reductions as PCC cuts, because pools are balanced only at the end of the capacity allocation processes, not at the end of each cut process. CRE – Capacity Recalled
CRE is applied when a Releasing Shipper recalls capacity from the Replacement Shipper in the Evening, Intraday 1 and/or Intraday 2 cycles, which results in a “bump” of previously scheduled Replacement Shipper quantities. EPSQ rules apply in the Intraday 1 and 2 cycles. If you see a CRE reduction reason code on your report, here are some suggestions:
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Contact the shipper from whom you acquired the capacity. Find out if that shipper plans to „reput‟ the capacity before the next day. (Shippers can reput capacity back for replacement shippers but this must be no later than 8:00 am (CCT) on the day timely nominations are due (for flow the next day). If the releasing shipper does not plan to reput the capacity, you will need to negotiate a new deal, or contact your marketer to sign up for firm capacity that you can own and have control over. NEW! GQS - Gas Quality Specifications (are not met) This reduction reason code is applied when either 1) An upstream point operator is not able to deliver gas to the pipeline within our specified Tariff gas quality limits, or 2) A downstream point operator refuses to accept gas for quality reasons. Reductions as a result of a gas quality specification not being met can cause previously scheduled quantities to be unscheduled and primary firm nominations to be reduced. EPSQ rules apply in the Intra-day cycles, but can be overridden depending on pipeline conditions. A notice is posted on the EBB. If you see a GQS reduction reason code on your report, here are some suggestions: Find out where the gas quality has become an issue by reading the notice posted on the EBB. If you are getting supply directly from the receipt point involved or are delivering gas directly to the delivery point involved, contact the operator to see what the status is and if necessary, make plans to change your supply or market accordingly in subsequent cycles. If you are getting supply from a pool or delivering to a pool, contact the pooler and see what the status is of the GQS and what the pooler plans to do to ensure your nomination is scheduled in subsequent cycles. (Keep in mind that Poolers will see these kinds of reductions as PCC cuts because pools are balanced only at the end of the capacity allocation processes, not at the end of each cut process.) If you get a GQS cut in later cycles, but the EBB notice announces the cut in an earlier cycle, contact your immediate upstream or downstream party to see if they have changed their ranks from the previous cycle and caused a cut to be applied to your nomination.
NEW! FMJ - Force Majeure This reduction reason code is applied when the pipeline has an interruption in transportation service (i.e., the inability to transport gas at published operational capacity levels) resulting from an unplanned facility outage. Force Majeure may be declared in the Timely, Evening, Intraday 1 or Intraday 2 cycles. A notice is always posted on the EBB with the details of the Force Majeure. Force Majeure events may cause previously scheduled quantities to be unscheduled and primary capacity quantities to be reduced. This type of event may be declared at receipt, delivery, and/or Intermediate Scheduling Point (ISP) locations.
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EPSQ rules apply, but can be overridden depending pipeline conditions. If you see an FMJ reduction reason code on your report, here are some suggestions: Find out where the Force Majeure event has occurred by reading the notice posted on the EBB. If you are getting supply directly from the receipt point involved or are delivering gas directly to the delivery point involved, contact the operator to see what the status is and if necessary, make plans to change your supply or market accordingly in subsequent cycles. If you are getting supply from a pool or delivering to a pool, contact the pooler and see what the pooler plans to do to ensure your nomination is scheduled in subsequent cycles. (Keep in mind that Pooler will see these kinds of reduction as PCC cuts because pools are balanced only at the end of the capacity allocation process, not at the end of each cut process.) If you get an FMJ cut in later cycles, but the EBB notice announces the event in an earlier cycle, contact your immediate upstream or downstream party to see if they have changed their ranks from the previous cycle and caused a cut to be applied to your nomination. Serious Force Majeure events can continue for days, weeks, or even months. Depending on the nature of the event, you might need to make long term plans to bypass the areas involved. A CIG scheduler can help you understand the pipeline segments that are constrained as a result of the event. PCC - Pipeline Capacity Constraint PCC is applied to your nominations when the sum of all the nominated quantities at a particular point exceeds the operationally available capacity. You can check available capacities from the Informational Postings on the EBB for the pipeline, gas day and cycle of interest. Reductions are calculated on the Net nominated quantities at a location, taking into consideration nominations flowing in both a forward haul and backhaul direction. Consequently, if forward haul nominations are supported by backhaul nominations (by displacement) and scheduled, and those backhaul nominations are reduced in later cycles, the forward haul nominations can be impacted as a result of the loss of displacement capacity related to the reduced backhaul nominations. CRE and BMP reductions – These types of reductions are a subset of the capacity allocation PCC reduction process. We broke these out so shippers could distinguish when they have been reduced as a result of a capacity release recall event or a higher priority nom, taking the space they had been previously scheduled. (See the explanations of these two codes under their own headings in this document.)
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EPSQ rules apply in the Intraday Cycles. (See explanation at the beginning of the document.) If you see a PCC reduction reason code on your report, here are some suggestions: If you are a firm shipper, make sure you have not unintentionally nominated over your MDQ at the receipt, delivery, or along your primary path. You can check the new Overrun Predictor and the Graphical Pipe reports to verify your entitlements. You can also use these reports to see if you nominated entirely or partially off your primary path and caused your nomination to be evaluated as Flow Path Secondary or Secondary. The new Shipper Cut Report shows your nominations separated into their different scheduling categories. These will help you determine how each nomination was evaluated during the capacity allocation process. For example, you might see that part of your nom scheduled as a category Primary Firm and part scheduled as an Overrun. Ranks matter! If you add nominations in later cycles and do not rank them appropriately, or change the ranks on your existing nominations, you can impact your nominations in ways you did not intend. Remember that our scheduling processes are allocating capacity every cycle at the contract level. For example, if you nominated and schedule two nominations in Cycle 1 with a rank of 1, and then add two more nominations in Cycle 2 and continue to use a rank of 1 on each nomination, then the quantity evaluated as previously scheduled will be allocated across all nominations. If a common location is constrained, then the previously scheduled quantity on each nomination will be evaluated at a higher level than those quantities evaluated as „new/incremental‟. Suggestion: Rank your new nominations with a lower rank if you consider your previous cycle nomination(s) more important to be scheduled. Change your previous cycle nominations to a lower rank if you consider your new nominations a priority.
NEW! PLM - Pipeline Maintenance PLM is applied when the standard operational capacity at a receipt, delivery, and/or ISP is lowered to allow for planned pipeline maintenance that may result in reductions to nominations. Reductions as a result of pipeline maintenance can impact firm capacity quantities. A pipeline maintenance schedule is provided to CIG Schedulers by our Gas Control Group. CIG Schedulers publish the maintenance schedule on the EBB, and are also responsible for entering the affected capacity impacts (by location and effective dates) into their daily processing plans. It is important to keep close track of these schedules so you know what changes you need to make in your nomination to avoid negative impacts to your nominations. To minimize the impact to our customers, we try to schedule maintenance with the following in mind: Avoid starting on a Monday or holiday Finish before a weekend unless the job is longer than 4 days Avoid peak use periods to minimize impacts on available capacity such as:
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o Winter LDC loads o Summer power plant loads Minimize summer maintenance on the CIG Southern System. Combine work on pipeline facilities to minimize number of outages Coordinate work with Customer facilities
If you see a PLM reduction reason code on your report, here are some suggestions: Keep an eye on the postings for maintenance. Annual Maintenance notices are initially posted in 4th quarter for the following year. Monthly schedules are posted on the EBBs for CIG, WIC, and CP (and soon Ruby) by 9 business days before the following month and updated as needed. Notices are updated as soon as changes are identified. Keep in mind Poolers will see these kinds of reductions as PCC cuts, because pools are balanced only at the end of the capacity allocation processes, not at the end of each cut process. If you have questions regarding the maintenance schedule, here are the Gas Control Contacts: o
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Dean Makings, Manager
(719) 520-4766 (Office)
(719) 659- 3523 (Cell)
[email protected]
Bill McMillan, Maintenance Planner
(719) 520-4389 (Office)
(719) 440- 9270 (Cell)
[email protected]
Gas Control Room: 719-520-4221
QER - Quantity Exceeds MDQ of Associated Contract (Seamless Nominations) QER is applied when nominations exceed our pipeline‟s off-system capacity on another system (e.g. WIC‟s capacity on Overthrust). This reduction reason code is associated with our Seamless Nominations function where shippers can schedule across the off-system capacity by entering only one nomination that spans multiple pipes. If our schedulers determine the total off-system nominations exceed our off-system capacity, they will reduce nominations to the offsystem capacity limit according to the terms of the nominated pipeline tariff. For example, if
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WIC shippers nominate using WIC‟s off-system capacity on the Overthrust Pipeline in excess of the capacity WIC holds on Overthrust, Our scheduling process will reduce the WIC shipper nominations to the capacity limit using the WIC tariff rules. If you see a QER reduction reason code on your report, here are some suggestions: If you are a firm shipper, make sure you have not unintentionally nominated over your MDQ at the receipt, delivery, or along your primary path. You can check the new Overrun Predictor and the Graphical Pipe reports to verify your entitlements. You can also use these reports to see if you nominated entirely or partially off your primary path and caused your nomination to be evaluated as Flow Path Secondary or Secondary. The new Shipper Cut Report shows your nominations separated into their different scheduling categories. These will help you determine how each nomination was evaluated during the capacity allocation process. For example, you might see that part of your nom scheduled as a category Primary Firm and part scheduled as an Overrun. If you are nominating on a secondary basis, then you can assume that other shippers are nominating in total over our off-system capacity limit. You might want to make other arrangements to ship your gas. UPR / UPD (new!) – Underperformance of Confirming Party A UPR and/or UPD reduction is applied when the flow rates at particular interconnects do not match scheduled quantities, and CIG schedulers set a cap or limit on the point to more closely match actual flow rates. Reductions as a result of a UPR/UPD can cause previously scheduled quantities to be unscheduled, and firm capacity quantities to be reduced. When flows at a point begin to trend out of balance, schedulers closely monitor the flow rate and call the operator to devise a plan of action. In addition, nightly notices are posted so shippers can be prepared for possible cuts the next day. EPSQ rules apply in the Intra-day cycles. Definitions: UPR - Underperformance of Confirming Party at Receipt: Nominated quantities at a transportation service provider‟s receipt (supply) point exceed the demonstrated physical performance at the receipt location. UPD - Underperformance of Confirming Party at Delivery: Underperformance reductions are applied at the delivery point when the operator‟s confirmations exceed the quantities actually being taken from the TSP (Transportation Service Provider) by the point operator. If you see a UPR or UPD reduction reason code on your report, here are some suggestions:
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Keep an eye on the EBB nightly postings to see if the receipt or delivery points on your nominations are at risk for being reduced for underperformance issues. Contact your upstream or downstream supplier (Pooler or Interconnect Operator) to see if that party has any information or plan of action. Contact your upstream or downstream interconnect operator to see if he has a plan to get back on rate Be prepared to move your nominations to/from another point. HRY – Hourly Service Entitlement Reduction The HRY reduction reason code is used to show reductions to HEEN nominations when the sum of two or more HEEN nominations on the same contract exceed the contract MDQ. The shipper‟s delivery ranks are used to make the reductions which will reduce the lowest ranked nomination first and so on or, if nominations are ranked the same, the cut will be applied pro rata. EPSQ rules apply in the Intraday Cycles.
Aligning Supplies and Markets Reduction Reason Codes CBL – Contract Balancing The easiest way to remember what this reduction code means is to just say to yourself, „There is no market.‟ This code is applied to poolers who have confirmed more than the downstream shipper has requested. If you see a CBL reduction reason code on your report, here is a suggestion: Contact your downstream market to find out why the downstream nomination does not match your confirmation. Your transaction will automatically be resubmitted for the next cycle for possible scheduling if the shipper agrees to increase or add a nomination. Otherwise, you will need to look for another market for your gas. CPR – Confirming Party Reduction The upstream pooler has underconfirmed the nomination. If you see a CPR reduction reason code on your report, here is a suggestion: Contact the pooler supplying your nomination. Ensure his rank on your nomination is set at a high priority so if his supply is reduced, your nomination has the best chance of getting scheduler.
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PRR/PRD – Underperformance of Confirming Party A physical receipt or delivery point interconnect operator has underconfirmed the nomination. PRR Confirming Party Reduction at the physical Receipt PRD Confirming Party Reduction at the physical Delivery If you see a PRR or PRD reduction reason code on your report, here is a suggestion: Contact your supplier or market, depending on whether the code is a PRR (receipt) or PRD (delivery), to determine why your deal is incomplete which caused the operator to underconfirm your nomination. Make the necessary changes for the subsequent cycle.
