Capacity Optimization Open Season

May 08, 2020

(as updated May 20, 2020)

 

 

To assist Customers in the optimization of their transportation service requirements and support the optimization of its expansion program, NOVA Gas Transmission Ltd. (“NGTL”) is soliciting requests for deferral or advancement of pending contracts, requests for turnback of certain billable contracts and early notification of non-renewal of billable contracts in accordance with the terms of this open season (“Open Season”).

 

For clarity, any request or notification submitted in this Open Season will not relieve, defer, advance or otherwise alter any transportation arrangements on other pipeline systems.

 

All capitalized terms not defined herein have the meaning ascribed to them in the NGTL Tariff or the applicable Project and Expenditure Authorization (“PEA”).

 

 

Deferral and Advancement Requests

 

NGTL is soliciting requests for the deferral or advancement of the Estimated Billing Commencement Date of pending Firm Transportation – Receipt (“FT-R”) and Firm Transportation – Delivery (“FT-D”) Schedules of Service subject to PEAs with an Estimated Billing Commencement Date in 2021, 2022 or 2023.  Customers may request to defer the Estimated Billing Commencement Date for all or a portion of the Contract Demand of their pending Schedule of Service by up to two years.  Customers may also request to advance the Estimated Billing Commencement Date for all or a portion of the Contract Demand of their pending Schedule of Service by up to two years; however, in any case, the requested advancement date may not be earlier than April 1, 2021. All deferral and advancement requests must be for a new Estimated Billing Commencement Date of either April 1st or November 1st of an applicable year. If Customer is willing to accept more than one date within the available period, Customer must rank its preferred new Estimated Billing Commencement Dates on their request form. Customers must also specify a minimum and maximum Contract Demand requested to be deferred or advanced.

 

Requests for deferral or advancement do not extend, shorten or otherwise change the contract term of the pending Service.  The provision of Service will remain subject to the terms and conditions of the applicable PEA, including the receipt of regulatory approvals for and construction of any facilities necessary to provide the Service. NGTL will continue to hold all Financial Assurances in accordance with the PEA.  If NGTL accepts a deferral request relating to a PEA that includes customer-specific facilities, the Customer will be responsible for the allowance for funds used during construction (“AFUDC”) during the period of the delay. 

 

Customers wishing to submit a request for deferral or advancement must fill out NGTL’s deferral form or advancement form and submit it to [email protected] by 10:00 a.m. Mountain Time (MT) on May 25, 2020.  Customers must submit a separate request form for each applicable pending Schedule of Service.  Upon the close of the Open Season, all requests are irrevocable and binding on the Customer.

 

NGTL is not obligated to accept any deferral or advancement request.  While NGTL will take a Customer’s ranking of preferred deferral or advancement dates into account, NGTL may accept requests for any of the dates specified in Customer’s request form.  NGTL may also prorate requests where necessary, subject to the minimum deferral or advancement contract demand specified in Customer’s request form.  

 

NGTL will assess all deferral or advancement requests together with any turnback requests to determine, in its sole discretion, whether any request or combination of requests is anticipated to result in a net benefit to the NGTL system and its Customers.  NGTL’s evaluation will include consideration of whether:

  1. acceptance will allow NGTL to defer elements of its capital program, provided such adjustments to the timing of costs and revenues are not anticipated to result in an increase in NGTL’s rates; and/or
  2. offsetting deferral and advancement requests can be accommodated by the planned facility sets.

 

If a request is accepted by NGTL, the Customer will be required to execute an agreement to amend, as applicable, Customer’s PEA and pending Schedule of Service to reflect the deferral or advancement of the Estimated Billing Commencement Date for the applicable Contract Demand, including any provisions required to address AFUDC charges for customer specific facilities that are deferred. 

 

NGTL intends to notify customers of the acceptance of any deferral or advancement requests and provide amending agreements by June 17, 2020.  All Customers will be required to execute and return the amending agreements by June 22, 2020. 

 

 

Turnback Requests

 

NGTL is soliciting requests for turnback of all or a portion of the Contract Demand of billable Schedules of Service with Service Termination Dates in 2022 and 2023.  Customers may request such turnback to be effective as of: April 1, 2021, November 1, 2021, April 1, 2022, November 1, 2022, April 1, 2023 or November 1, 2023.  If Customer is willing to accept more than one of the available dates, Customer must rank their preferred turnback dates on the request form.  Customers must also specify a minimum and maximum contract demand requested to be turned back.

 

Customers wishing to submit a turnback request must fill out NGTL’s turnback request form and submit it to  [email protected] by 10:00 a.m. Mountain Time (MT) on May 25, 2020.  Customers must submit a separate request form for each applicable Schedule of Service; however, Customers may submit one request form for multiple Schedules of Service with the same location and Service Termination Date by including an attachment to the form that lists all applicable Schedules of Service that form part of the request (excel attachment is acceptable). For such requests, the requested turnback dates specified in the form will apply for all Schedules of Service listed in the attachment and Customer should specify the minimum and maximum Contract Demand requested for turnback based on the aggregate Contract Demand of all the Schedules of Service listed in the attachment.  Upon the close of the Open Season, all requests are irrevocable and binding on the Customer.  If Customer’s Service is subject to a pending permanent transfer request, NGTL will assess the turnback request based on the location to which the Schedule of Service will be transferred.  If Customer submits a request for the permanent transfer of the Service during NGTL’s assessment period, NGTL may not consider Customer’s turnback request of such Service. If Customer’s Service is subject to a pending assignment, Customer is solely responsible to the assignee for any changes to its contractual arrangements resulting from an accepted turnback request.

 

NGTL is not obligated to accept any turnback request.  While NGTL will take a Customer’s ranking of preferred turnback dates into account, NGTL may accept requests for any of the turnback dates specified in Customer’s request form. NGTL may also prorate requests where necessary, subject to the minimum turnback contract demand specified in Customer’s request form. 

 

NGTL will evaluate turnback requests together with any deferral or advancement requests and will determine, in its sole discretion, whether acceptance of any request or combination of requests is anticipated to result in a net benefit to the NGTL system and its Customers.   NGTL’s evaluation will include consideration of:

  1. whether the turnback request reduces or defers the need for expansion facilities;
  2. the revenue impacts and capital and operating cost impacts; and
  3. whether adjustments to the revenues and costs are anticipated to result in an increase in NGTL’s rates.

 

NGTL intends to notify Customers of the acceptance of any turnback requests and provide amended Schedule of Services by June 17, 2020.  Customers will be required to execute and return amended agreements by June 22, 2020.

 

Early Notification of Non-Renewal

 

NGTL is soliciting early notifications of non-renewal from any Customers currently holding FT-R or FT-D service that is eligible for renewal.  Customers that do not intend to renew all or a portion of the Contract Demand of their billable Schedule of  Service and wish to submit a notification of non-renewal should complete a notification of non-renewal form for applicable Schedule(s) of Service and submit them to [email protected] by 10:00 a.m. MT on May 25, 2020.  Upon the close of the Open Season, all notifications of non-renewal are irrevocable and binding.  If Customer’s Service is subject to a pending assignment, Customer is solely responsible to the assignee for any changes to its contractual arrangements resulting from the early notification of non-renewal.

 

Links to Forms;

 

For more information, please contact your Marketing Representative:

or alternatively, contact Todd Harper at 403-831-9607 or [email protected]

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