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TransCanada Mainline O.E.B. STAR Presentation 5/20/2008. Minimum Standards for Transportation Open Seasons. TransCanada Transportation Access Procedures (TAPs) Minimum Notice and Open Season Period Bid Package Reverse Open Season Bid Results and Reporting Requirements Criteria and Timing.
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Minimum Standards for Transportation Open Seasons • TransCanada Transportation Access Procedures (TAPs) • Minimum Notice and Open Season Period • Bid Package • Reverse Open Season • Bid Results and Reporting Requirements • Criteria and Timing
TransCanada Transportation Access Procedures (TAPs) • TransCanada’s Transportation Access Procedures (TAPs) and Short Term Firm Transportation Toll Schedule outline the process by which the Mainline administers requests for firm transportation service: • Ensures fair and equitable treatment to all Service Applicants • TAPs developed in collaboration with Mainline shippers and approved by the National Energy Board
Minimum Notice and Open Season Period • The TAPs and STFT Toll Schedule provide customers non-discriminatory access to transportation services and allow them sufficient time to: • evaluate offers of new, existing and short term firm transportation capacity • develop bids for service • in the case of capacity expansions, allow other service providers to coordinate service offerings
TransCanada Open Seasons • TransCanada holds a variety of open seasons for firm capacity: • New Capacity Open Season • When new facilities are required • Existing Capacity Open Season • Provides customers the opportunity to bid on existing capacity on the Mainline • Daily Capacity Open Season • Half of existing capacity offered in Existing Capacity Open Season • Short Term Firm Capacity (STFT) • Existing capacity typically offered on a seasonal basis
Bid Package • TransCanada posts open season information on its website: • Amount of capacity being offered • Date capacity is available • Potential constraints (e.g. new capacity will not be available until…; no capacity available from…) • Minimum term requirements • Methodology used to evaluate bids (term x toll) • Details are defined in the Tariff and summarized in the Postings
Reverse Open Season • After a New Capacity Open Season is held that results in bids for new capacity, TransCanada holds a Request for Turnback Open Season in order to potentially reduce the facilities required for expansion • NEB-approved process • TransCanada posts the request for turnback bids on its public website • Terms of the Request for Turnback include: • Receipt and delivery point • Daily quantity • Commencement date and term • Date that Turnback Bids must be received by TransCanada
Bid Results & Reporting Requirements • TransCanada posts all of the Firm Contracts on its system in a “Contract Demand Energy” (CDE) table. Data in the table includes: • Shipper name • Contract number • Receipt / delivery point • Service type (FT, STS) • Start / end date of contract • Contract quantity • This contract summary is updated at the beginning of each month to include contracts awarded through the TAPs process.
Protection Against Cross-Regulated / Un-regulated Subsidies • TransCanada operates under a Code of Conduct that was developed with the Tolls Task Force and approved by the National Energy Board. • This Code of Conduct addresses affiliate transactions and cost allocation policy. • TransCanada also files an annual compliance with the NEB. • Canadian Mainline Code of Conduct • TCPL Mainline 2007 Compliance Report • TCPL Mainline 2007 Compliance Plan
Conclusion • TransCanada’s NEB-approved Transportation Access Procedures (TAPs) provide open and non-discriminatory access to Mainline Capacity; • Procedures for obtaining capacity (open seasons) are defined in TransCanada’s Mainline Tariff and in the open season postings themselves; • Contracts awarded through open seasons are standardized, NEB approved and are included as part of the Tariff (any contract that varies from the pro-forma version in the Tariff must be filed with the NEB); • All Contracts awarded through open seasons are reported in TransCanada’s “CDE” table in the Tariff.