Typical Gas Arrangements for Power Plants

1
Typical Gas Arrangements for Power Plants

• Some pipelines may offer delivered swing gas
  supply.
• Typically required to arrange for transportation
  services, specialized swing rates and/or
  storage to cover demand swings.
• Required to purchase day-ahead gas before ERCOT
  DA awards and RT dispatch.
• Transportation rates typically consist of
  commodity rate (/MMBtu) plus fuel. Firm
  transportation includes a reservation fee in
  /MMBtu per day.
• -Storage typically consists of a commodity rate
  plus fuel for injections and commodity rate for
  withdrawals, plus a reservation fee for capacity
  (/MMBtu of capacity per month).

2
Gas Trading Example

• Threaded specific purchase transaction linked
  to specific sale transaction
• Pathed Non-threaded as shown in diagram above
• Profit Center system grouped into profit
  centers or trade books (i.e. WTX, Storage, etc.)
  and separately managed PL. Mangers can negotiate
  transactions with the other profit centers or
  externally.
• Rules-Based specific rules to define
  transaction pathing/pricing and PL based on
  unique company requirements or pipeline
  arrangements.