January 8, The proposed revisions are submitted as of the date hereof for an effective date of March 25, 2010.

Transcription

1 national fuel January 8, 2010 Hon. Jaclyn A. Brilling Secretary Public Service Commission Three Empire State Plaza Albany, NY Re: Proposed Tariff Revisions National Fuel Gas Distribution Corporation Dear Secretary Brilling: National Fuel Gas Distribution Corporation ( Distribution or the Company ) submits the following revisions to its tariff, P.S.C. No. 8 GAS: Leaf No Revision 3 Leaf No Revision 0 Leaf No. 2 Revision 8 Leaf No. 94 Revision 7 The proposed revisions are submitted as of the date hereof for an effective date of March 25, Leaf Nos and : Description of Proposed Revisions In Revision 3 to Leaf No , Distribution adds a new section, (3)(a)(vii), and modifies existing section (3)(b). The language added as section (3)(a)(vii) notifies Suppliers that the Company may from time-to-time post advisory or mandatory instructions on its web site regarding minimum flow requirements applicable to Mandatory Upstream Transmission Capacity ( MUTC ) delivery points. These instructions are designed to ensure, as necessary, that Suppliers utilize MUTC to deliver supplies to the system when and where needed. By directing deliveries to specific receipt points, the Company will be better able to match upstream deliveries with location-specific dispatching requirements, a functionality that will become increasingly important to maintaining reliability as customers migrate to ESCO service in greater numbers. In section (3)(b) of Leaf No a minor change is made to update the Grandfathered Upstream Transmission Capacity ( GUTC ) threshold to the currently available quantity based upon the most recent capacity demonstration, and certain one-time implementation language is deleted because it is no longer relevant. If all of the modifications proposed in Revision 3 are made, language on Leaf No will expand on to Leaf No (currently an intentionally blank page). National Fuel Gas Distribution Corporation / 6363 Main Street / Williamsville, NY 14221

2 Hon. Jaclyn A. Brilling January 8, 2010 Page 2 Leaf Nos. 2 & 94: In addition to the proposed tariff amendments to Leaf No , the Company also offers two other, minor amendments to its tariff, P.S.C. No. 8 GAS. These proposed revisions are ministerial and clarifying in nature. In Leaf No. 2, a reference to the STBA Customer Consent Form is deleted as that form is no longer in Distribution s tariff. Similarly, in Leaf No. 94 the word sales is removed to clarify that the Company s Operational Flow Order ( OFO ) authority exists to protect all firm customers, not just sales customers. This modification acknowledges that in the event of an OFO both firm sales and firm transportation customers are affected because both are served via the same system facilities. Newspaper Publication The Company will publish notice of the proposed tariff revisions in accordance with Public Service Law 66(12) and applicable regulations. Conclusion For all of the foregoing reasons, Distribution respectfully requests that the Public Service Commission approve the proposed tariff revisions for an effective date of March 25, Respectfully submitted, Randy C. Rucinski Senior Attorney

3 PSC NO: 8 GAS LEAF: 2 NATIONAL FUEL GAS DISTRIBUTION CORPORATION REVISION: 8 INITIAL EFFECTIVE DATE: 03/25/10 SUPERSEDING REVISION: 7 TABLE OF CONTENTS General Information Leaf No. I. Territory to Which Schedule Applies 4 II. General Rules, Regulations, Terms and Conditions, etc Definitions Obtaining Gas Service from the Company Mains and Service Lines Inspection, Maintenance and Replacement of Facilities Special Services on Customer's Premises Without Charge Special Services on Customer's Premises at a Charge Meters and Regulators Meter Reading, Billing and Collection Discontinuance of Service Reconnection of Service Access to Premises Liability Revision Resale Prohibited Temporary Service Balanced Billing Plan for Residential Customers Levelized Payment Plans for Non-Residential Customers Quarterly Payment Plan - Residential Customers Adjustment of Rates in Accordance with Changes in the Cost of Gas Restrictions on Use Deferred Payment Agreement Non-Residential Service Application Residential Service Application Request for Waiver of Security Deposit Residential Customer Payment Agreement Transportation Service Agreement Standby Service Agreement Sales Service Agreement Reserved for Future Use Reserved for Future Use Reserved for Future Use Supplier Transportation, Balancing and Aggregation (STBA) Service Agreement Reserved for Future Use Case 98-G-1291 Revenue Adjustment Increase in Rates in Municipality Where Service is Supplied Weather Normalization Adjustment Definition of Customer Classes Pipeline Supplier Take or Pay Expense Recovery Surcharge Reserved for Future Use 145

4 PSC NO: 8 GAS LEAF: 94 NATIONAL FUEL GAS DISTRIBUTION CORPORATION REVISION: 7 INITIAL EFFECTIVE DATE: 03/25/10 SUPERSEDING REVISION: 6 GENERAL INFORMATION (Cont d) II. 20.e. CONTINUED or Customer s agent shall be charged the greater of $10.00 or 125% of the highest per Mcf cost of gas purchased in Company s gas supply portfolio during the days the OFO is applicable. In addition to the foregoing, failure to meet DDQ and ADDQ requirements during an OFO may result in discontinuation of service. (2) The Company may also issue OFOs which apply to transportation Customers receiving daily metered service under SC 13D as follows: (a) Modifications of Daily Surplus or Deficiency Tiers The Company may lower the percentage levels of the Daily Deficiency or Surplus tiers for SC 13D service during an OFO. The Company may change the first imbalance tiers for Daily Surplus or Deficiency Imbalances as circumstances warrant. The first imbalance tier for Daily Surplus or Deficiency Imbalances may be reduced to a range of 0-2% and the second tier will be correspondingly modified to a range of 2-15%. (b) Modifications of Daily Deficiency Rate during an OFO When the Company declares a deficiency OFO for Deficiency Imbalances outside the first tier, the applicable charge shall be the higher of the rate under SC 11 or the rate produced by the index calculation at the applicable tier level. (c) Suspension of No Harm, No-Foul Rule During an OFO, the no harm, no-foul rule shall not apply to Deficiency Imbalances from 0-2%. (3) The Company may issue any other OFOs reasonably required to maintain system operational integrity and to assure continued service to its firm service Customers. f. Curtailment of Service

5 PSC NO: 8 GAS LEAF: NATIONAL FUEL GAS DISTRIBUTION CORPORATION REVISION:3 INITIAL EFFECTIVE DATE: 03/25/10 SUPERSEDING REVISION:2 SERVICE CLASSIFICATION No. 19 SUPPLIER TRANSPORTATION, BALANCING AND AGGREGATION - Continued (iii) Primary delivery points, primary receipt points and associated quantities for MUTC may be changed based on Company s contractual commitments and F.E.R.C. rules and regulations. Suppliers will receive thirty (30) days written notice of any such change, after which the original locations and quantities subject to such change shall be fully superseded and replaced by the revised locations and quantities, as applicable. (iv) Suppliers must satisfy all applicable upstream pipeline requirements as well as applicable federal regulations necessary to accept assignment of MUTC. When a Supplier s failure to meet such requirements leads to an inability to accept assignment of upstream capacity, the Supplier will be unable to serve its customers and the Company may terminate the Supplier s STBA agreement. (v) If the assignment of MUTC includes storage capacity, the Supplier shall be required to provide the Company with the permission necessary to allow the Company to obtain access to the Supplier's storage balance information. All requirements described in Section 2.(2)(a) above apply to NFGSC ESS capacity assigned for MUTC. In the case of storage capacity on other pipelines, the inventory requirements will be adjusted to account for differences in storage service deliverability. (vi) If a Supplier s STBA agreement is cancelled or terminated the Company may recall MUTC capacity that has been released to the Supplier. In the case of storage capacity on other pipelines, the Supplier will transfer associated storage gas to the Company as described in Section 2.(2)(a)(iii) above. (vii) From time to time, the Company may post instructions on its web site to Suppliers regarding minimum flow requirements applicable to MUTC delivery points. Such instructions shall be advisory unless the Company posts a notice that Supplier compliance with such instructions is mandatory, based upon market and seasonal requirements. Postings requiring mandatory Supplier compliance shall be issued on a minimum 24 hours notice. Also, the Supplier shall be required to provide the Company with the permission necessary to allow the Company to obtain access to the Supplier s upstream transportation information to monitor compliance with the advisory and mandatory instructions herein. (b) Grandfathered Upstream Transmission Capacity GUTC is capped at a threshold level of 93,572 Dth/day delivered into NFGSC. The total primary receipt point rights and upstream pipelines into NFGSC held by the Company and available to Suppliers for GUTC will be posted on the Company s web site. As to such capacity, the following requirements shall apply:

6 PSC NO: 8 GAS LEAF: NATIONAL FUEL GAS DISTRIBUTION CORPORATION REVISION: 0 INITIAL EFFECTIVE DATE: 03/25/10 SUPERSEDING REVISION: SERVICE CLASSIFICATION No. 19 SUPPLIER TRANSPORTATION, BALANCING AND AGGREGATION - Continued (i) Supplier must maintain five (5) winter months (November - March) of primary firm capacity upstream of NFGSC sufficient to meet Supplier s extreme peak day ADDQ. Supplier shall produce proof of such contracted primary firm capacity to the Company as provided in the Procedures Manual prior to receiving service under this Rate Schedule. GUTC must have a capacity path between the point where gas is produced and the interconnection with released NFGSC capacity as described above. Alternatively, where gas is available at liquid points, Suppliers are not required to show firm capacity upstream of such points. Acceptable liquid points for this purpose are identified in the Procedures Manual. (ii) Supplier s GUTC must include primary delivery points which coincide with Company s primary receipt rights on the NFGSC capacity retained by the Company or the Supplier s GITC.