TW Alt. Del. by Price ,
 Hi Jim,

To keep you updated on the conference call I sat in with Lindy, Susan, Ramona and Mary Darveaux yesterday afternoon on the TW filing for scheduling Alternate Delivery Points by Price.  Here's a summary of the conversation (sorry, it's windy).

To make a tariff filing for scheduling Alternate Delivery Point by Price, TW will need to file a change to the GT&C definition of Alternate Receipt and Delivery Points.  TW tariff page 51A.  Also, Section 22.2 (tariff page 81B) for the scheduling of Alt. R/D Points will be modified.  Susan is making these changes and will route to Marketing.

TW does not want a process in place during the nomination cycles for "bidding up, right to match" if allocation occurs.  They just want a straight scheduled or not scheduled.  Also, TW wants every day, every cycle to have alternates scheduled by price.  However, if a discounted alternate by price gets in on the first cycle, then in cycle 2, another alternate comes in at a higher price than the alternate in cycle 1, the alternate in cycle 2 cannot bump the alternate in cycle 1 if there is not enough capacity to schedule them. The alternate scheduled in cycle 1 is already flowing and considered firm along with the primary firms and cannot be bumped by other alternates or even primary firms for the rest of this gas day.  

Since TW has more that one max rate path rate, they would like to have the alternate with the highest absolute value up to max rate (they could be different paths with different max rates).  If there is more than one max rate alternate delivery wanting to be scheduled, they will be considered for scheduling on a pro-rata basis (even if their max rates are different).  

TW also has flowing gas priorities for IT within the gas day.  Once IT is scheduled, it can only be bumped in the evening cycle (which is cycle 2, which starts tomorrow at 9:00am) and cycle 4 (also known as Intraday 1, gas flow effective 5:00pm, same day) by any alternate firms requesting to be scheduled.  If the IT is bumped during these two cycles, we actually bill them for 8 hours of flow and then the replacement shipper is billed for the remaining 16 hours of the day.  If an alternate firm requests to be scheduled during the other cycles, they may not bump existing alternates.  This is the way it works today and no changes are proposed to this with the new tariff filing.  

Once any Alternate Firm is scheduled, if an allocation becomes necessary, all primary and alternates will be allocated together for this gas day pro-rata.  This is the way it works today and no changes are proposed to this with the new tariff filing.

TW is preparing the tariff changes now.  They are determining how long it will take to make system changes to effect these changes.  Based on that answer, they will make their filing 30-60 days before the time they can actually accommodate the new changes.  I think they are looking at an April or May implementation date.  They feel pretty comfortable that they will get approval for this, even if they get protests.


I will keep you posted if I hear or see anything else on this matter.

Thanks, Kim.
jim.wiltfong@enron.com