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September, 2007

Gas – Electric Communications Procedures for Compliance with Order No. 698 Spectra Energy Pipelines. September, 2007 . Spectra Energy Transmission.

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September, 2007

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  1. Gas – Electric CommunicationsProcedures for Compliance with Order No. 698 Spectra Energy Pipelines September, 2007

  2. Spectra Energy Transmission • Spectra Energy (NYSE: SE), one of North America’s premier natural gas infrastructure companies, consists of gathering and processing, transmission and storage, and distribution businesses. For close to a century, Spectra Energy and its predecessor companies have developed critically important pipelines, storage and related energy infrastructure that connects natural gas sources to premium markets and customers. • Natural gas operations include more than 17,500 miles of transmission pipeline and approximately 265 billion cubic feet (Bcf) of storage capacity in the United States and Canada. • Our mission is to aggressively respond to the new competitive landscape by strengthening our market position, capturing new growth opportunities and focusing on safety, reliability, customer service, cost management and compliance. In all our work, we will maintain a steadfast adherence to our values. • Those values include: stewardship, integrity, respect for the individual, high-performance, win-win relationships and initiative.

  3. Spectra Energy Transmission System Storage Capacity 265 Bcf Transmission Pipe 17,500 mi System Compression 3,000,000 HP Natural Gas Throughput 3.2 Tcf Canadian Processing Capacity 5.3 Bcf/day Distribution Main Lines 22,000 mi Distribution Service Lines 13,000 mi Retail Customers 1.3 MM

  4. FERC Order No. 698 / NAESB Communication Requirements Order No. 698 / NAESB requirements are set forth in Appendix A which among other things: • Gas Fired Power Plant Operators are required to communicate material changes in circumstances that may affect hourly gas flows. • Ensure that pipelines will have relevant information to run their systems; • Pipelines will confirm with gas-fired power plant operators as to whether hourly flow deviations can be honored. • Electric transmission operators and power plant operators are required to sign up to receive critical notices and operational flow orders from interconnecting pipelines.

  5. Overview of Spectra Energy’s Recommendations • Exchange of critical information between Spectra Energy Pipelines and Power Plant Operators and ISO/RTOs. • Information can be exchanged through a web-link or auto e-mail. • Exchange of and regular updates to contact names and phone numbers • Electric Industry participants subscribe to Critical Notices • Spectra Energy Pipelines will host periodic meetings to discuss gas–electric coordination issues.

  6. Communication Procedures for Power Plant Operators • Absent notification to the contrary, Spectra Energy Pipelines are willing to waive the requirements of Order No. 698 with regard to Power Plant Operators to the extent Order No.698 requirements exceed the applicable pipeline tariff requirements. • Absent notification to the contrary, Spectra Energy Pipelines will grant hourly flexibility within overall daily scheduled gas quantities. • Upon request by the pipeline, the Power Plant Operator will provide all the information required by Order No. 698.

  7. Subscribing to Spectra Energy Notices • Power Plant Operators and ISOs/RTOs must sign up for Pipeline Critical and Non Critical Notices • There no limit to the number of people in an organization that can subscribe to notices. • Log-on names and passwords are self defined. • Notices can be sent to 3 different e-mail addresses per person. If e-mail notices are sent to a pager, the notice may be truncated. If so, it is recommended that the subscriber follow up by reading the notice on line. • Procedures for signing up for Critical and Non Critical Notices are set forth in Appendix B.

  8. Contact Numbers • Gas Control and Volume Management • Operational Problems or Emergencies • (800) 231-7794 Texas Eastern Transmission • (800) 726-8383 Algonquin Gas Transmission • (888) 231-2294 East Tennessee Natural Gas • (888) 576-4634 Maritimes & Northeast Pipeline (US and Canada) • (800) 231-7794 Market Hub Partners, LP • Link Help Desk • 1-713-627-5765 • 1-800- 827-LINK (5465) • General Business Inquiries • (800)-627-5400

  9. Potential Exchange of Operational Data by ISO/RTO and Pipelines • Spectra Energy Pipelines desires to explore the exchange of the following information in a prospective manner (for example; next day, one day out, two days out)  • The ISO/RTO’s system forecast of utilization (as a percent of maximum, load factor, or some other measure of meaning) for each particular day. • The individual plants that will be dispatched each day and the hourly burn schedule for the plants that are going to run (Initially, a cross reference tying the ISO’s name for the plant with the plant name that is in our database will need to be established) • To the extent that there are changes in the “next day” forecast of plants that will run, then we need “within day” updates to the plants that will be dispatched along with the burn forecast mentioned above. • What information does the ISO/RTO need from the Pipeline?

  10. Appendix A Order No. 698 North American Energy Standards Board Standards for Gas – Electric Communication

  11. NAESB Standards for Gas – Electric Communication • In the event that the pipeline and the power plant operator can not mutually agree on communication procedures, the requirements of the NAESB Gas-Electric communication standards shall prevail. • Standard 0.3.12 • The Transportation Service Provider (TSP) / Power Plant Operator (PPO) communication standards set forth in NAESB WEQ Standard Nos. WEQ- 011-0.1, WEQ-011-0.2, WEQ-011-0.3, WEQ-011-1.1, WEQ-011-1.2, WEQ- 011-1.3, WEQ-011-1.4, WEQ-011-1.5, and WEQ-011-1.6 and NAESB WGQ Standard Nos. 0.2.1, 0.2.2, 0.2.3, 0.3.11, 0.3.12, 0.3.13, 0.3.14, and 0.3.15 do not convey any rights or services beyond or in addition to those contained in the TSP’s tariff and/or general terms and conditions and/or do not impose any obligations that would otherwise be inconsistent with the requirements of applicable regulatory authorities, including affiliate code of conduct requirements. These communication standards should be used in addition to the NAESB WGQ standard nomination timeline and scheduling processes for the TSP’s contract / tariff services. In the event of a conflict between any of these communication standards and the TSP’s tariff or general terms and conditions, the latter will prevail. • Standard 0.3.13 • The Power Plant Operator (PPO) and the Transportation Service Provider(s) (TSP) that is directly connected to the PPO’s Facility(ies) should establish procedures to communicate material changes in circumstances that may impact hourly flow rates. The PPO should provide projected hourly flow rates as established in the TSP’s and PPO’s communication procedures.

  12. NAESB Standards for Gas – Electric Communication • Standard 0.3.13 • Subject to the conditions of NAESB WEQ Standard No. WEQ-011-1.1 and NAESB WGQ Standard No. 0.3.11, this standard applies to a Power Plant Operator (PPO) and the Transportation Service Provider (TSP) to whose system the PPO facility(ies) is directly connected or with whom the PPO is a Service Requester. • A PPO should not operate without an approved scheduled quantity pursuant to the NAESB WGQ standard nomination timeline and scheduling processes or as permitted by the TSP’s tariff and/or general terms and conditions, and/or contract provisions. • However, if the PPO reasonably determines that it has circumstances requiring the need to request gas scheduling changes outside of the above-referenced nomination and scheduling processes and the affected TSP(s) supports the processing of such changes, the PPO should provide its requested daily and hourly flow rates to the TSP(s) • (1) as established in the TSP’s and PPO’s communication procedures pursuant to NAESB WEQ Standard No. WEQ-11-1.2 and NAESB WGQ Standard No. 0.3.12 and/or • (2) as specified in the TSP’s(s’) tariff or general terms and conditions. • Based upon whether or not the PPO’s request can be accommodated in accordance with the appropriate application of the affected TSP’s(s’) tariff requirements, contract provisions, business practices, or other similar provisions, and without adversely impacting other scheduled services, anticipated flows, no-notice services, firm contract requirements and/or general system operations, the PPO and all of the affected TSPs should work together to resolve the PPO’s request. • Where the affected TSP determines that it is feasible to provide the PPO with changes in flow rates without additional communications, no additional communications are required. These procedures will govern such communications unless the applicable parties mutually agree to create alternative communication procedures.

  13. NAESB Standards for Gas – Electric Communication • Standard 0.3.14 • A Transportation Service Provider should provide Regional Transmission Organizations (RTO), Independent System Operators (ISO), any other appropriate independent transmission operators (ITO), and Power Plant Operators (PPO) with notification of operational flow orders and other critical notices through the RTO / ISO / ITO / PPO’s choice of Electronic Notice Delivery mechanism(s) as set forth in NAESB WGQ Standard Nos. 5.2.1, 5.2.2, and 5.3.35 – 5.3.38. • Standard 0.3.15 • Regional Transmission Organizations, Independent System Operators, other independent transmission operators, independent Balancing Authorities and/or Regional Reliability Coordinators should establish written operational communication procedures with the appropriate gas Transportation Service Provider(s) and/or Power Plant Operator(s). These procedures should be implemented when an extreme condition could occur, as defined in such procedures. • These procedures will govern unless the applicable parties in the gas and electric industry mutually agree to create alternative written communication procedures that are more appropriate and meet the parties’ collective regional operational needs. • Training on and testing of such communication procedures should occur periodically.

  14. Appendix B Spectra Energy Transmission Web Site Access

  15. Spectra Energy Web Site Access and E-Mail Notifications • There is no requirement to have a LINK System logon or password to access Notices on the Spectra Energy Web Site. • Postings of Critical and Non-Critical Notices: • Notices are divided into Critical, Non-Critical and Planned Service outages. • All notices are posted for 90 days or longer. • Notices older than 90 days may be accessed by calling the LINK group at 713-627-4321. • Register for Subscriptions of E-mails of Critical and Non-Critical Notices and other notices.

  16. http://Link.spectraenergy.com

  17. Accessing Notices on the LinkSystem Website 1st Select a Pipeline 2nd Select Informational Postings

  18. Critical and Non-Critical Notices on the LinkSystem Website Click on Critical, Non-Critical or Planned Service Outages to access the notices. Choose the notice of Interest.

  19. Critical and Non-Critical Notices on the LinkSystem Website

  20. http://Link.spectraenergy.com

  21. Subscribing to Spectra Energy Notices Register on the Link System Click to Register on the LinkSystem if you have not subscribed. The log on ID and password are self defined.

  22. Subscribing to Spectra Energy Notices More than one e-mail address can be entered as well as pager e-mails. The number of individuals that can subscribe to e-mail postings in an organization is not limited. Scroll down and chose the appropriate notice and pipeline. In addition to critical notices, non-critical notices and planned service outages are available.

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