TransCanada U'S'Pipelines Central O'E'B' STAR Presentation 5202008

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TransCanada U.S.Pipelines CentralO.E.B. STAR
Presentation 5/20/2008
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ANRPL and GLGT Transportation Tariff and ANR
Storage Company Storage Tariff

• Common Carrier with standardized tariff
• Regulator approved general terms and conditions
• Conditions of service are generally not
  negotiable
• Service duration and price are negotiable
• Conform to industry standards developed by NAESB
• Basic service entitlements include
• Flexible receipt delivery points
  (transportation only)
• Segmentation (transportation only)
• Capacity assignment through capacity release
  program
• Service continuation - Right of First Refusal
• Service termination - Pre-granted abandonment

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ANRPL, GLGT and ANR Storage Co. - Transportation
and Storage Service Access

• Open access to capacity and services
• Open seasons with competitive bidding for
  constrained capacity
• FERC Standards of Conduct for affiliated and
  non-affiliated transactions
• Compliance facilitated through reporting
  requirements which provide transparency
• NAESB standardized reporting of service
  availability
• On-line reporting - Index of Customers and
  day-to-day details
• Filing of non-standard agreements
• Annual reporting to regulator
• Form 2 2A (Comprehensive financial
  operational data)
• System Capacity Report, Flow Diagrams, etc.

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Why are standardized tariffs required?

• Features other than price can dramatically affect
  the value of a service
• Receipt and delivery point changes, release or
  assignment rights, renewal rights, segmentation,
  priority of service, etc.
• Ensures customers receive uniform service
• Market participants know what they are purchasing
  
• Discrimination can be identified

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Answers to Board Staff Question 6

• ANRPL and GLGT open seasons are consistent with
  the criteria set forth on the Boards Appendix A
• Under the FERC approach, the requirement is to
  allocate capacity (both transportation and
  storage) in a not unduly discriminatory manner
  (open access).
• Open seasons are widely accepted as one method to
  fulfill this requirement.
• Selling capacity on a first-come first-served
  basis may also provide open access.
• Check and balance in complaint procedures and
  reporting requirements

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Answers to Board Staff Question 6 a)

• Expansion open seasons generally 45 to 60 days
• often preceded by non-binding open seasons to
  gauge market interest
• longer timeframe required to secure supply,
  upstream/downstream arrangements, financing, etc.
  
• information requirements, special conditions, and
  bid evaluation criteria are stated in the open
  season solicitation

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Answers to Board Staff Question 6 b)

• Existing capacity open seasons follow NAESB
  capacity release guidelines
• Available capacity posted on internet website
• Minimum three-day open season for long-term
  capacity
• One-hour (noon to 1PM CST) for short term
  capacity

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Answers to Board Staff Question 6 b) (cont)

• NAESB guidelines for capacity release auctions
• Developed by industry participants
• Adopted by reference in FERC tariffs
• Uniform minimum bid requirements for all capacity
  release postings
• Where bid criteria may vary (e.g., winning bid
  evaluation method), disclosure requirement
• Industry standard for capacity and expansion
  auctions

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Answers to Board Staff Questions 8-14

• 8-12. Standard service contracts are an effective
  way to ensure open access for similarly situated
  shippers for both transportation and storage.
  Appropriate reporting requirements, including an
  Index of Customers and transactional reporting,
  and filing of non-conforming agreements, ensures
  the transparency that is required for market
  participants to identify abuses.
• 13-14. Rules should apply to all market
  participants with the ability for the regulator
  to waive or suspend requirements for small
  operators or in situations it deems appropriate.
• NAESB Standards represent a large body of work
  already completed by industry participants, and
  reliance on these standards is a reasonable
  starting point