Managing Peoples Natural Gas Company LLC Transportation Programs Overview Peoples Natural Gas Company LLC (PNG) is a natural gas distribution company. PNG serves more than 350,000 customers in the 16 counties of southwestern Pennsylvania. PNG currently offers two gas service options to its customers. A retail service encompasses the purchase and transportation of natural gas, and a transportation service. Customers that choose transportation service, purchase natural gas from a natural gas supplier (NGS) while PNG delivers the gas to the customer s facility. Currently, two gas transportation alternatives are available for customers: Direct Transportation an individual customer is responsible for managing its own gas purchases and deliveries. PNG will then balance the deliveries and actual consumption on the individual customer account. There is no fee to NGSs (exception: local gas aggregators, see Supplier tariff, Rate LGA, aggregation fees) interested in providing commodity services to customers under this service option. Pooling The customer assigns responsibility of the gas purchases and deliveries to a NGS and the NGS will aggregate the gas purchases and customers. PNG will then balance the deliveries with actual consumption on the NGS s account. There is a fee billed to the NGS that elects this service. The pooling program is designed to increase customer choice, create an environment for NGS driven commodity pricing and assure continued service reliability for all customers. PNG introduced its first pooling program in July 1989. At that time, PNG recognized a need in the marketplace to simplify transportation services for both the end user and third-party gas providers. The pooling concept has proven to be a win-win-win service offering -- a win for end users, a win for natural gas suppliers (NGS) and producers and a win for PNG. Pooling services currently offered are: Non-Priority One (NP-1) Pooling enables NGSs to aggregate non priority-one commercial and industrial customers so as to purchase and deliver gas to meet the monthly gas requirements of the customers in the pool. Priority One (P-1) Pooling enables NGSs to aggregate priority-one customers (residential customers and essential human needs commercial customers) so as to purchase and deliver gas to the utility in a fashion that resembles the customers daily usage patterns. Local Gas Aggregation (LGA) Pooling enables NGSs and producers to aggregate natural gas supplies produced solely in Pennsylvania and directly injected into PNG s gathering or transmission pipelines. This natural gas supply source may be available for direct transportation customers, pool operators and PNG s system supply needs.
Marketer Eligibility all NGSs are eligible to establish a pool, upon meeting the following criteria: Complete a Pooling application Complete a Credit application Meet certain creditworthiness requirements Meet certain bonding requirements Be licensed by the Pennsylvania Public Utility Commission Execute a Pooling Agreement Execute a Customer Designation of Agency Agreement, if applicable Adhere to the Rules and Regulations set forth in the Supplier tariff. Receive Gastar training which details online daily pool management Timeline The general turnaround time to process pooling applications is a minimum of 30 days. A minimum 60-day period is needed from the receipt of the NGS s pooling application before an NGS can begin enrolling customers into their pool. Contacts -- Contacts for PNG Transportation Programs: Mailing Address: Peoples Natural Gas Company LLC 375 North Shore Drive, Suite 600 Pittsburgh, PA 15212 Steven Kolich, Manager, Transportation Services steven.p.kolich@peoples-gas.com Phone: 412-208-6525, Cell: 412-770-6181, Fax: 412-208-6577 Mina Speicher, Senior Transportation Specialist mina.speicher@peoples-gas.com Phone: 412-208-6524, Fax: 412-258-2911 (Supply Management, Gastar, & Supplier Issues) Stephen Kelly, Associate, Transportation Analyst stephen.j.kelly@peoples-gas.com Phone: 412-208-6653, Fax: 412-208-6577 (Customer Enrollments, Customer Billing Issues) Jason Dalton, Senior Transportation Specialist jason.dalton@peoples-gas.com Phone: 412-258-4426, Fax: 412-208-6577 (EGC Division) PNG establishes rates, rules and delivery terms for transportation customers in its Retail tariff. Rates, rules and delivery terms for the various pooling services are established in PNG s Supplier tariff. Both tariffs can be accessed via the Peoples Gas Company home page: www.peoples-gas.com October 2014, PNG Transportation - Reference Guide Page 2
Managing Peoples Natural Gas Company LLC Transportation Programs PNG Gastar Electronic Bulletin Board (EBB) Description PNG makes available its computerized electronic bulletin board service for use by its transportation customers, NGS, pool operators and their agents. Upon execution of the Customer Designation of Agent agreement, when necessary, users can nominate quantities of gas for receipt and delivery by PNG. To effectively manage their accounts, the Gastar system provides users with aggregate pool customer usage, transportation customer usage, local meter production volumes, OFOs, cashout rates, timelines, telemetered reads, reports and a host of other valuable information. Gastar website: https://ebb.peoples-gas.com Nominations The customer/agent nominates all sources of gas supplies in advance. Nominations are submitted via PNG s Electronic System GASTAR on a dekatherm per day basis delivered to PNG s city gate. PNG may retain a percentage of gas delivered to the customer's account. Refer to Rate GS-T of PNG s tariff for currently effective gas retainage levels and provisions. Gas may be retained on each individual supply source. The factor of 1.03 is used to convert dekatherms to Mcfs. Deadline for first of the month nominations and all nomination changes occurring during the month must be received no later than 12:30 p.m. eastern standard time, one day prior to the effective flow date. Nominations for Saturday, Sunday and Monday gas flow are due on Friday at 12:30 p.m. eastern standard time. Notices are posted in GASTAR for holiday nominations deadlines. The customer/agent must conform, in content and format, to Peoples' specifications for nominations as noted in GASTAR. The nominations include, at minimum: Customer name, agent s name if applicable, contract number, effective date, requested daily volume, and source of gas (local Pa. produced, Pa. produced via interstate, or interstate). PNG will not confirm nominations to any pipeline, or accept any volumes at its city gate without prior notification from customer/agent. October 2014, PNG Transportation - Reference Guide Page 3
Banking (Direct & NP Pools) PNG will automatically bank up to the currently applicable percent of over delivered volumes into the customer s account. The banked volumes are calculated as follows: Net Mcf Received Less Previous month's Advanced Mcf; previous month's banked volumes are not included. The banked gas is delivered to the customer s account the following month as the first gas delivered through the meter. Unless otherwise notified, over delivered volumes that surpass the currently applicable banking provision will automatically be injected into the customer s "ST" storage up to the maximum storage volume. If the maximum storage capacity has been reached, the imbalanced volumes will be purchased by PNG as specified in its tariff under rate GS-T. The cashout rate is calculated based on the actual lowest monthly cost of gas purchased by PNG times the following price multiplier: Positive Imbalance Percentage Price Multiplier Over 3.5% to 10% 0.9 Over 10% 0.8 A customer may elect not to have gas automatically injected into storage but be cashed out by PNG. The election must be entered in GASTAR no later than the last day of the effective month. No elections can be entered once the month has passed. Advancing (Direct & NP Pools) PNG will automatically advance up to the currently applicable percent of under delivered volumes into the customer s account. The advanced volumes are calculated as follows: Net Mcf Received Less Previous month's Advanced Mcf; previous month's banked volumes are not included. Advanced gas is paid back to PNG the following month as the first gas through the meter. Under delivered volumes that surpass the currently applicable advance provision are automatically withdrawn from the ST storage account. If the storage volumes do not satisfy the requirements, PNG will sell gas to the customer at the applicable negative imbalance cashout rate specified in the tariff under rate GS-T. The rate is calculated based on the actual highest monthly cost of gas purchased by PNG times the following price multiplier: October 2014, PNG Transportation - Reference Guide Page 4
Negative Imbalance Percentage Price Multiplier Over 3.5% to 10% 1.1 Over 10% 1.2 Positive and Negative imbalance volumes will be priced in the following month s invoice. Example: October cashout volumes will be listed on the October invoice and priced in November s invoice. Imbalance Percentage Calculation: Total imbalance amount (bank or advance plus over 3.5% volume)/net mcf received = Imbalance Percentage. Operational Flow Orders PNG may issue an Operational Flow Order (OFO) which will direct the customer or its agent to adjust its supply nominations to equal the Aggregate Daily Consumption Volume, with gas delivered at the points specified by PNG. Daily consumption estimates shall be provided no later than 10:00 a.m. of the same day. Upon request, PNG may consider adjustments to the Aggregate Daily Consumption Volume to the extent such adjustment, in its discretion, benefits system operations during the OFO event and if such adjustment is confirmable by PNG. If the customer has gas in storage during an OFO, the maximum storage withdrawal shall equal the maximum withdrawal requirements as defined in PNG s Retail tariff under its rate schedule ST or any further limitation PNG may find necessary to impose in accordance with reasonable and standard industry practice during the OFO event. Failure to comply with the OFO may result in incremental charges to the customer as established in the Rules and Regulations of PNG s Supplier tariff. Customer Designation of Agent 1. Customer must be an approved Business Associate of PNG. 2. Customer must complete request for Customer Designation of Agent (CDA) which indicates the services agent will provide for customer and the term of the agency designation. 3. The signed (CDA) agreement is sent to PNG for processing. 4. Agreements must be received by the 15th of the month to be effective for the following month (i.e. deadline is May 15th to be effective June 1). 5. Security is set in GASTAR so the agent may access the individual customer contracts and perform tasks set forth in the CDA. October 2014, PNG Transportation - Reference Guide Page 5
Sources of Gas Supply Interstate - PNG may receive gas supplies via the following interstate pipelines: odominion Transmission, Meter 20200 oequitrans, Ginger Hill Meter 11142 onational Fuel, PNG CG Meter otennessee Gas Pulaski Meter 20542 Pitt Terminal Meter 20199 otexas Eastern Rockwood M2 Meter 70051 Ebensburg M3- Meter 70323 Off System Transportation Program Description The Off System Transportation Program is designed to extend an option to marketers and end use customers to transport gas to markets outside of PNG s service territory. For more information on PNG s Off System Program please contact the Transportation Services Department. October 2014, PNG Transportation - Reference Guide Page 6
Managing Peoples Natural Gas Company LLC Transportation Programs Direct Transportation Program Description The Direct Transportation Program is designed to extend commodity choice options to those customers that choose to accept the responsibility to supply the natural gas requirements for its facility(s) and to balance those volumes on their own account. The customer maintains the transportation rights of advancing, banking, and storage services. Upon execution of a Customer Designation of Agent Agreement, the customer s agent may nominate and deliver gas to PNG s city gate on its behalf. Customer accounts are monthly balanced. Sources of Gas Supply Interstate, Intrastate - Locally Produced Gas (LGA), Off-System Storage Monthly Imbalance Volumes Direct transportation customers are balanced monthly. The current applicable banking and advancing tolerance is 3.5%. Gas volumes are automatically advanced or banked up to 3.5% of the net mcf gas received for the month. October 2014, PNG Transportation - Reference Guide Page 7
Managing Peoples Natural Gas Company LLC Transportation Programs Non Priority-One Pooling Program Description The Non Priority-One Pooling Program is designed to extend commodity choice options to non-essential human needs customers (primarily commercial and industrial customers) of PNG. The Pool Operator, as agent for Non Priority-One end users, may aggregate natural gas supplies, both interstate and intrastate, needed to satisfy the full requirements of one or more non-essential human needs customers. The transportation customer assigns its transportation rights of advancing, banking, and storage services to an approved marketer. The key requirement is the Pool Operator's commitment to satisfying the full requirements of the customers included in its' pool. The pool is monthly balanced (comparing gas receipts to the actual deliveries). Sources of Gas Supply Interstate, Intrastate - Locally Produced Gas (LGA), Off-System Storage, Pool-to-Pool Transfers Imbalance Trades If elected, the Pool Operator may trade monthly positive or negative imbalance volumes with another Non Priority-One Pool Operator of Rate Schedule NPP-B-T. All imbalance trading volumes over a calendar month must be nominated to PNG by 12:00 midnight on the fourth full business day after the pool operator has received the actual aggregate customer consumption volumes. Monthly Imbalance Pool Volumes Non Priority-One pools are monthly balanced. The current applicable banking and advancing tolerance is 3.5%. PNG will automatically advance or bank up to 3.5% of the net mcf gas received for the month. Projecting Customer Usage Information Required: Historical consumption of customers Base load requirements of customers Historical Heating Degree Days Projected Heating Degree Days Average Billing Days of customers included in pool October 2014, PNG Transportation - Reference Guide Page 8
Definitions: Base load a given usage of gas remaining fairly constant over a period of time, usually not heat sensitive. For example, residential base load is the amount of natural gas consumed by clothes dryers, water heaters, and cooking. Heating Degree Day or Degree Day Deficiency A measure of coldness of the weather experienced, based on the extent to which the daily mean temperature falls below 65 degrees F. For example, a daily mean temperature represents the sum of the high and low temperature readings during a day and divided by two. Billing Cycle The regular periodic interval used by a utility for reading the meters of a customer for billing purposes. PNG reads meters monthly for high-pressure customers (usually industrial and some large volume commercial customers) and bimonthly for all other customers. Customer Class A group of customers with similar characteristics that are identified for the purpose of setting a rate for service. Residential service for domestic purposes Commercial service to customers engaged in wholesale or retail trade, communications, transportation, government, etc., and to customers not directly involved in other classes of service. Industrial service to customers engaged in changing raw or unfinished materials into another form or product. Customers using over 50% of their gas for process is classified as Industrial on PNG s system. Calculation for Monthly Nomination: 1. Determine the Average Daily Baseload for customer group. Baseload is the gas consumed during the months of July and August. (There are very few, if any heating degreedays in July and August.) July + Aug. Consumption/Average Billing Cycle Days in July and Aug. = Average Daily Baseload 2. Determine the Average Winter Heat Load for customer group. Winter Heat load is the gas consumed during January, February, March, November, and December minus the product of the average billing days in the winter multiplied by the baseload. (Jan. + Feb. + Mar. + Nov. + Dec. consumption) Baseload * Average Winter Billing Days) = Average Heat Load 3. Determine the Degree Day Factor The degree day factor is winter heat load divided by the actual degree days in winter. This is the average amount of gas the customer group consumes each degree day. Answer from #2/actual winter degree days = Degree Day Factor 4. Determine the Projected Daily Heating Load for the Month The projected heating load is the degree day factor times the projected degree days for the month divided by the average number of calendar billing days. October 2014, PNG Transportation - Reference Guide Page 9
Answer from #3 * months Normal degree days/average number of calendar billing days = projected daily heating load for the month. 5. Determine Daily Consumption The daily consumption is the sum of the average baseload plus daily heat load. Answer from #1 + Answer from #4 = daily consumption in mcf 6. Determine Daily Nomination The daily nomination is the conversion of mcf divided by the shrinkage factor times the conversion factor. Answer from #5 /.914 * 1.03 = Daily Nomination PNG s conversion factor is 1.03 (Factor for converting mcf to dth) Example: 400 mcf = 412 dth Calculation: 400 x 1.03 PNG s Fuel Shrinkage is 5.2% (Factor.948) 1 Example: If your projection assumes 30,000 mcf customer usage for the month of November. Your nomination should be grossed up to include shrinkage (retainage) and the conversion factor. Calculation: 30,000/30 days = 1,000 mcf/day 1,000/.948 = 1,055 mcf/day (calculate shrinkage) 1,087 x 1.03 = 1,087 dth/day (calculate conversion factor) Variables to Remember During the Month: Customer Billing cycles Weather warmer or colder than normal Customer changes plant closings, equipment failures, new equipment, additional equipment, decrease in equipment, etc. Shoulder months: April, May, September, October Location of Customers 1 The fuel retainage rate applicable to LGS customers is 4.6% and will be applied through a 0.6% fuel refund once industrial consumption is known. October 2014, PNG Transportation - Reference Guide Page 10
Managing Peoples Natural Gas Company LLC Transportation Programs Priority-One Pooling Program Description The Priority-One Pooling Program is designed to extend commodity choice options to essential human needs (primarily Residential) customers of PNG. The Pool Operator, as agent for Priority-One end users, has essentially the same portfolio of gas delivery capability as PNG would employ to serve the same end users through a bundled retail service tariff. In exchange, the Pool Operator is expected to operationally perform in a fashion that replicates results PNG achieves through the bundled service. The key requirement is Pool Operator's committing to deliver sufficient gas on a daily basis to satisfy its' end-use customers' estimated daily consumption. Sources of Gas Supply Interstate, Intrastate - Locally Produced Gas (LGA), Off-System Storage, Pool-to-Pool Transfers PNG will allocate capacity based on a pro rata share of supply sources at peak day design for the essential human needs customer and will be assigned to the Pool Operator as agent for the customers included in the Priority-One Pool. The pro rata supply sources are off system storage capacity and upstream pipeline firm transportation capacity. Assigned Supply Portfolio Off-System Storage - Storage capacity owned and operated by Dominion Transmission and/or EQT AVC. Capacity released to Pool Operator is recallable by PNG under certain conditions outlined in the Supplier tariff. Upstream Pipeline Capacity - The upstream firm transportation capacity is on the following pipelines: EQT Sunrise/AVC, Texas Eastern, and Tennessee Gas. The upstream pipeline firm pipeline capacity is structured as "Capacity Release" as a zero cost release. For New P1 Pools: Asset Allocation Percentages are based on the Priority-one Pool customers peak day capacity and are currently: Interstate Pipeline FT: Equitrans Sunrise /AVC FT Texas Eastern 68.8% 4.3% Pipeline Storage EQT AVC GSS 26.9% October 2014, PNG Transportation - Reference Guide Page 11
Purchase Supply Option: A Priority-One Pool Operator also has the option to request to purchase supply from Peoples delivered into the released Equitrans Pipeline capacity at a price equal to First of Month IFERC DTI Appalachian index. P1 Pools may also deliver gas to PNG s city gate to meet the daily requirements of its customers via interstate receipt points if available or through LGA Pool transfers. Determination of Aggregate Daily Consumption Volume PNG shall provide the Pool Operator a projection of the aggregate daily consumption of the customers included in its pool at a minimum of two days in advance of the gas flow date. The posting schedule (before 10:00 a.m. est.): Monday-Wednesday Tuesday-Thursday Wednesday-Friday Thursday-Saturday Friday-Sunday, Monday and Tuesday PNG may issue OFOs consistent with terms of its Supplier tariff and, as a result, may provide the daily projections less than two days in advance of the gas flow date. During periods in which an OFO is in effect, PNG shall establish the daily projection no later than 10:00 a.m. of the same day. The Pool Operator is expected to deliver gas supply to the pool equal to the aggregate daily consumption volume. Daily Imbalance Pool Volumes Once the imbalance trade nominations have been verified, the pool will be balanced for invoice purposes. Positive and negative daily pool imbalances are cashed out daily based on a formula set forth in PNG s Supplier tariff. Reconciliation of Monthly Volumes The calendar month pool consumption of the pool customers is defined as the sum of the aggregate monthly consumption volumes as adjusted for net unbilled. The difference between daily targets and calendar month pool consumption is reconciled monthly. The difference shall be reconciled in the next calendar month following its determination by adjusting the pool s daily pool requirement volume on each day in the adjustment month by an amount equal to the difference divided by the number of days in the month. October 2014, PNG Transportation - Reference Guide Page 12
Managing Peoples Natural Gas Company LLC Transportation Programs Local Gas Aggregation Pooling Program Description The Local Gas Aggregation (LGA) Pooling Program is a service provided by PNG whereby producers or their agent may aggregate local gas injected directly into PNG s facilities into an LGA pool. The producer or their agent can sell the aggregated supply volumes to pool operator(s), PNG s system supply, and, if licensed by the Public Utility Commission to direct transportation customer(s), on a monthly basis. PNG will balance the aggregated supply pool on a monthly basis, comparing volumes nominated out of the supply pool with actual production when those volumes are known. Sources of Gas Supply Intrastate - Locally Produced Gas (LPA) Supplies consist of gas sourced solely from gas injected directly into PNG's gathering or transmission pipelines. The LGA pool may obtain its supplies by: Dedication of 100% of the production from well(s) added to the pool. PNG receives LPA gas at various Production Receipt Points included in the Local Gas Aggregation Agreement and the applicable Measurement Operating Agreement with PNG. LPA gas is nominated in advance and is credited to the pool in the current month and is reconciled the month after actual volumes are known. 2.The LGA pool may also obtain LPA volumes from other Local Gas Aggregation pool operators by means of pool-to-pool transfers. Nominations Nominations are submitted via Gastar. PNG may retain a percentage of gas delivered to the LGA pool. Refer to Rate GS-T of PNG s tariff for the currently effective gas retainage levels and provisions. Five days prior to the end of each month, the Aggregator will provide its local gas aggregation nomination for the metering stations identified in the agreement. The Company shall determine the reasonableness of the nomination and with either confirm, in total or in part, or reject the aggregator s nomination within two business days after receipt of the nomination. Once the aggregator and the Company agree on the local gas aggregation nomination, the agreed upon volumes will be the confirmed volumes used for reconciling nominations with actual production. The aggregator may change its local gas nomination during the month. The Company may, at its discretion, ask for additional justification for any nomination, which may result in an adjustment to the nomination. October 2014, PNG Transportation - Reference Guide Page 13
First of the month nominations and all nomination changes occurring during the month must be received no later than 12:30 p.m. eastern standard time, one day prior to the effective flow date. Nominations for Saturday, Sunday and Monday gas flow day are due on Friday at 12:30 p.m. eastern standard time. Notices are posted in GASTAR for holiday nominations deadlines. The customer or their agent must conform, in content and format, to nomination specifications as noted in GASTAR. Local Production Points or Wells Local Production Points are metering points for local gas produced directly into PNG s transmission or gathering system. The aggregator is responsible for submitting all the applicable information to PNG. Adding a New Well or Reactivating a Shut-in Well The following information is required to add a well or a production point to PNG s system: Letter stating whether the production will be added to a new or existing meter. Legible Well Data: Well Record and Completion Report, well plat, lease information (where applicable), estimated production per day, Gas Analysis, PNG line number and existing meter number, if applicable. Letter from the producer dedicating the gas production to the pool. Pool Operator must execute a Modification to Pooling Agreement prior to the addition of new production points (meters) or wells to the pool. Transferring an Existing Production Point The following information is required to transfer an existing production point from one pool/customer to another pool/customer: Information must be received by PNG no later than the last day of the month preceding the effective month. Example: November production period information must be received by October 31. 1.Complete an amendment to Appendix C Pennsylvania Meter Transfers form. This form must be signed by both the producer dedicating the production to the pool and the pool operator accepting the production. 2.The pool operator must execute an Amendment to Appendix C Pennsylvania Meter Transfers form prior to PNG transferring production points (meters) or wells to the pool. Reconciliation of Aggregation Volumes Confirmed Local Pa. nominations will be credited to the pool in the month specified in the Pool Operators' nomination. When actual Local Pa. volumes are known, -- via the monthly meter statements, generally available after the 20th of each month,-- any difference between actual and confirmed Local Pa. volumes will be reconciled, in the first full calendar month following the determination of actual Local Pa. volumes (the Adjusted Month). October 2014, PNG Transportation - Reference Guide Page 14
Local Pa. Volume Reconciliation Schedule Nominated Month January February March April May June July August September October November December Adjusted Month March April May June July August September October November December January February PNG permits a 10%+- allowance between the Gross Projected Production (GPP) volume and the Last Actual. GPP that exceeds the 10%+- allowance, will NOT be approved until the Transportation Services department has verified meter additions, deletions, production increases and decreases. The pool operator will be contacted by a Transportation Specialist if further justification is required. Monthly Imbalance Volumes Volumes nominated into a LGA Pool shall equal the volumes delivered out of the LGA Pool. Aggregators will not be permitted to deliver more gas out of the pool than is nominated into the pool in any given month. If volumes nominated into the LGA pool are greater than volumes delivered out of the pool, those volumes shall be sold to PNG at a calculated price defined in PNG Supplier tariff in rate schedule LGA. October 2014, PNG Transportation - Reference Guide Page 15
Managing Peoples Natural Gas Company LLC Transportation Programs Peoples, Equitable Gas Division Programs Firm Pooling Service Each prospective transportation customer must execute an agreement with the Pool Operator which includes assignment of the customer's nomination and balancing responsibilities to the Pool Operator. The Pool Operator must notify Peoples, Equitable Division in writing at least 25 working days prior to the first day of the service month. Notification can be sent via Internet mail or U.S. mail at 275 North Shore Drive, Pittsburgh, Pennsylvania 15212. Notification lists must include customer name, address and account number and whether the customer is a new or switch customer. Customer's written consent is required when switching suppliers. The monthly sign-up list is limited to additions and deletions to the original list. Peoples, Equitable Division will mail a verification letter to the customer within 2 working days after receiving notification from the Pool Operator. The Transportation Department will provide an updated list of new customers, transportation start dates and rejected customers by the 15th of the month prior to each service month via an electronic media. Also, the Company will provide the last 14 months of consumption information for new customers. Pool Operators must have access to the Internet including e-mail and a browser. Delivery Service Each prospective transportation customer must submit an executed application for General Delivery Service or Daily Delivery Service in a completed form acceptable to Peoples, Equitable Division prior to the initiation of transportation service. Faxed copies will not be accepted. The said request must be received by People s Transportation Department at 375 North Shore Drive, Pittsburgh, Pennsylvania 15212 at least 25 working days prior to the month for which transportation service is to become effective. Nominations will not be accepted by Peoples Transportation Department without an executed application and agreement. October 2014, PNG Transportation - Reference Guide Page 16
If you elect to have a broker/marketer submit an application on your behalf, it will be necessary that you furnish us with the appropriate broker/marketer agency agreement and/or a letter granting to your broker/marketer the right to act on your behalf. For the purpose of qualifying for General or Daily Delivery Service the customer's annual meter volumes must total at least 5,000 mcf during the most recent 12-month period. For the purpose of qualifying for Daily Delivery Service the customer and/or broker/marketer must have access to a computer and the Internet. Also, all customers electing Daily Delivery Service must pay for and maintain a dedicated telephone line installed to the meter, communication system costs, and all equipment, including installation, deemed necessary by the Company to administer daily balancing by providing all delivery points specified in the agreement with real-time electronic gas measurement. Peoples, Equitable Division will mail an agreement to the customer for execution within 15 working days after receiving their application. The Transportation Department will provide an updated list of new customers and transportation start dates for the month to the appropriate broker/marketer. Pooling Fees Listed below are the fees currently effective for all pool transactions. These fees are subject to change. Balancing Penalties Retainage Current effective Rate Schedule FPS & GPS 6.0 percent Btu Factor 1.064 POOLING PROCEDURES FOR OPERATORS: o Complete a pooling application o Complete a credit application o Access to a computer and the internet o Once approved, execute a pooling agreement for FPS and/or GPS o Provide customer list (Minimum 50 customers or 5,000 annual mcf) o Secure your supply source o Balance your individual accounts Pool Operators can nominate gas for customers that are not in the pool by submitting a separate nomination per end user. October 2014, PNG Transportation - Reference Guide Page 17