Aggregate Balancing November 17, 2004

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Aggregate BalancingNovember 17, 2004
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Current Process

• Multiple Contracts, Multiple Nominations,
  Multiple Imbalances and the potential for
  Multiple Cashouts OFO Penalties.

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Aggregate Balancing
AggregateContract
MemberContracts

• Aggregate Balancing is an administrative
  allocations tool that enables the Balancer to
  essentially create an Aggregate, and pool its
  gas supplies.

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Aggregate Contract
AggregateContract
MemberContracts

• Gas supplies will automatically be allocated to
  the member transportation agreements tied to
  the Aggregate.

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Aggregate Contract
AggregateContract
MemberContracts

• The Aggregate Contract carries the imbalance
  between nominated receipts and member deliveries.

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Aggregate Contract
Calculated Receipts
Calculated Fuel
Transport Volume

• A calculation is made to determine how much gas
  is needed to keep the member contract whole.

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Aggregate Contract
Becomes Delivery
Total Calculated Receipts

• That calculated receipt becomes the delivery on
  the Aggregate contract.

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Aggregate Contract
Total Gas Receipts

• All gas receipts are nominated on the Aggregate
  contract.
• Nothing is nominated on the member contracts.

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Aggregate Contract
Total Gas Receipts
Calculated member deliveries
Aggregate Imbalance

• The imbalance between total gas receipts and
  calculated member deliveries is maintained on the
  aggregate contract.

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Aggregate Contract
AggregateContract
MemberContracts

• Imbalance management responsibilities (make-up,
  payback, cashouts and Operational Flow Order
  penalties) reside on the Aggregate contract.

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Service Summary

• Aggregate Balancing provides the capability to
  aggregate
• Supply Nominations
• Contract Administration
• Imbalances
• Cashouts
• OFO Penalties
• Swaps

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How to Request Service

• Forms to request service are located under the
  Welcome Tab-Forms on the Gas Transport
  Website http//www1.xcelenergy.com/webebb/html/Gas
  Index.asp
• Submit completed Request for Aggregate Balancing
  to Transportation Representative (Agg Bala
  Request Form)
• Include completed Balancing Agency Designation
  for each Member Contract to be included under the
  Aggregate (AgentDesign-Agg Bal)
• All Request and Agency Forms are available under
  Gas Transportation website
• Transportation Representative will provide
  Balancer with AP number for scheduling when the
  request is approved

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Important Dates

• Approved requests to initiate service for a new
  Balancer that are received prior to the 15th of a
  month will be eligible for service beginning the
  1st day of the subsequent month.
• Examples
• Request Received December 13, 2004
• Service can initiate January 1, 2005
• Request Received December 17, 2004
• Service can initiate February 1, 2005
• Once service initiates, Member contracts can be
  added or deleted by submitting a request 4
  Business Days prior to the beginning of the
  effective month