Reminder: Allocations for Insolvent Customers on NGTL

Due to the reported insolvency of certain NGTL Customers TransCanada will take steps to ensure that reallocations of gas by Common Stream Operators (CSOs) do not result in inappropriate reductions to the Inventories of the insolvent Customers.

 

Concerns have been expressed that some CSOs may inappropriately reduce their allocations to the insolvent Customers for month-end or for prior billing periods. Such reductions in allocations may result in drafts of the Inventories of the insolvent Customers, the cost of which would be borne by all other Customers on NGTL. To guard against this potential risk and to protect the interests of all Customers on NGTL, TransCanada has implemented the following steps:

1)         No prior period adjustment will be processed that results in a reduction in allocations to an insolvent Customer, and

2)         No month-end allocation will be accepted if the quantity of gas allocated to the insolvent Customer is less than the sum of the daily quantities allocated to the insolvent Customer during the month. TransCanada will consider requests by CSOs for variances to this restriction on a case-by-case basis, subject to the provision of bona fide documented evidence which must include an Officer's Certificate, upstream measurement and contract data.

 

Should you have any questions or concerns, please feel free to contact the following individuals:

For questions regarding prior period adjustments

Kim Pane, 403-920-6252

Supervisor, Customer Credit

For information regarding month end allocations

Marlene Proctor 403-920-2686

Supervisor, Nominations & Allocations