Priority of Service Policy
POLICIES & GUIDELINES
Policy #: 07-CM-POS-015
of Service (POS) Guidelines
Effective: December 7, 2007
Applies to: Applied on a daily basis to services for
both in-franchise and ex-franchise customers in Union Gas’ Southern, and
Northern and Eastern Operations area.
Purpose: To prioritize scheduling reductions and
service restrictions for Union’s services during periods when Union’s
ability to flow interruptible gas quantities is less than the
Background: (Not to limit the applicability of the policy)
Union offers firm no-notice (allocated) services, firm
nominated services and interruptible services. The priority of service
listings provide information regarding the processing of interruptions
or scheduling reductions when requested services exceed available
capacity under normal operating conditions.
Firm no-notice services are not interruptible. Firm
nominated services are only firm if requested on the North American
Energy Standard Board (NAESB) Timely Nomination Cycle for the gas day in
question. Nominations for increases to daily quantities for Firm
Services after the NAESB Timely Nomination Cycle are treated the same as
interruptible services. Because Union is a non-bumping pipeline,
interruptible services scheduled on the NAESB Timely Nomination Cycle
will not be interrupted to make room for additional firm services
nominated on later nomination cycles.
In order to place services on the priority of service
list, Union considered several business principles. The principles
included: appropriate level of access to core services; customer
commitment; encouraging appropriate contracting; materiality; price and
term; and promoting and enabling in-franchise consumption.
The priority ranking for all services utilizing Union
Gas’ storage, transmission and distribution system as applied to both
in-franchise and ex-franchise services are as follows; with number 1
having the highest priority and the last interrupted.
Priority for STORAGE Services
1. Firm In-franchise Storage and Distribution services
and firm Ex-Franchise services (1)
2. In-franchise Interruptible Distribution storage
3. Peak Storage above firm up to 5% maximum storage
balance (MSB) (2)
4. Balancing (Hub Activity) <= 100 GJ/d; Balancing
(Direct Purchase) <= 500 GJ/d (3)
5. Off Peak Storage (First Cycle) up to 5%; Long Term
Storage up to 5% MSB (2)
6. Peak Storage and Off Peak (First Cycle) above 5% MSB
& Loans; In-franchise storage authorized overrun
7. Peak Storage and Off Peak (Second Cycle); Long Term
Storage above 5% MSB
8. Balancing (Direct Purchase) > 500 GJ/d
9. Balancing (Hub Activity) > 100 GJ/d
10. Late Nominations
Priority for TRANSPORT Services
1. Firm In-franchise Transportation and Distribution
services and firm Ex-franchise services (1)
2. In-franchise Interruptible Distribution services
3. C1/M12 IT Transport and IT Exchanges with Take or Pay
4. Balancing (Hub Activity) <= 100 GJ/d; Balancing
(Direct Purchase) <= 500 GJ/d; In-franchise distribution authorized
5. C1/M12 IT Transport and IT Exchanges at premium rates
6. C1/M12 Overrun <= 20% of CD (4)
7. Balancing (Direct Purchase) > 500 GJ/d
8. Balancing (Hub Activity) > 100 GJ/d; C1/M12 IT
Transport and IT Exchanges
9. C1/M12 Overrun > 20% of CD
10. C1/M12 IT Transport and IT Exchanges at a discount
11. Late Nominations
(1) Nominated services must be nominated on the NAESB
Timely Nomination Cycle otherwise they are considered to be a late
nomination and are therefore interruptible.
(2) Higher value or more
reliable IT is contemplated in the service and contract, when purchased
at market competitive prices.
(3) Captures the majority of customers that use Direct
Purchase balancing transactions.
(4) Captures the majority of customers that use overrun.
1. Union Gas will use its daily gas scheduling process
to forecast the impact of firm and interruptible and/or discretionary
customer activities on its storage, transmission and distribution
2. Customer requested and/or forecasted quantities are
compared to Union Gas’ operational limitations to determine if
scheduling reductions and/or service restrictions are required. Any
constraints are identified in advance of the effective flow time.
3. The Priority of Service list applicable to the
operational constraint is used to make reductions to the customer’s
requested and/or forecasted quantities to a level sufficient to
alleviate the constraint. Pro-rata reductions are performed within each
priority ranking when necessary.
4. Customers are notified of an operational constraint
and the corresponding impact on their requested and/or forecasted
activities. All notifications occur in advance of the effective flow
5. Customer must re-nominate, as necessary, to balance
any scheduling reductions and/or service restrictions.
6. As interruptions of specific services have ended the
processing of authorized transactions will resume. The customer will be
notified by phone and/or Unionline that their authorization will resume.
View PDF of
the Priority of Service Policy.
If you have any questions regarding the Nomination
Table please contact your Account Manager.