80_FR_47130 80 FR 46979 - Coordination of the Scheduling Processes of Interstate Natural Gas Pipelines and Public Utilities

80 FR 46979 - Coordination of the Scheduling Processes of Interstate Natural Gas Pipelines and Public Utilities

DEPARTMENT OF ENERGY
Federal Energy Regulatory Commission

Federal Register Volume 80, Issue 151 (August 6, 2015)

Page Range46979-46981
FR Document2015-19292

Federal Register, Volume 80 Issue 151 (Thursday, August 6, 2015)
[Federal Register Volume 80, Number 151 (Thursday, August 6, 2015)]
[Notices]
[Pages 46979-46981]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-19292]


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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Docket No. RM14-2-002]


Coordination of the Scheduling Processes of Interstate Natural 
Gas Pipelines and Public Utilities

Before Commissioners: Norman C. Bay, Chairman; Philip D. Moeller, 
Cheryl A. LaFleur, Tony Clark, and Colette D. Honorable.

Order on Request for Clarification and Notice of Comment Procedures

    1. Order No. 809 revised the Commission's regulations relating to 
the scheduling of transportation service on interstate natural gas 
pipelines to better coordinate the scheduling practices of the 
wholesale natural gas and electric industries, as well as to provide 
additional scheduling flexibility to all shippers on interstate natural 
gas pipelines.\1\ Among other things, Order No. 809 expanded the number 
of intraday nomination cycles from the current two to three and 
incorporated by reference into the Commission's regulations certain 
modified standards developed and filed by the North American Energy 
Standards Board (NAESB) that revised the standard nomination timeline 
for interstate natural gas pipelines. Order No. 809 established an 
implementation date of April 1, 2016. On May 28, 2015 the American Gas 
Association, the American Public Gas Association, and the Interstate 
Natural Gas Association of America (collectively, Associations) filed a 
request for the Commission to clarify the manner in which all pipelines 
should implement the standards on April 1, 2016, and a request for 
clarification relating to interpretations of recall rights under 
existing capacity release contracts in light of the transition from two 
to three intraday nomination cycles. As discussed below, we grant the 
request with respect to the manner in which the pipelines should 
implement the standards and request comment on their default proposal 
regarding transitioning capacity release contracts.
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    \1\ Coordination of the Scheduling Processes of Interstate 
Natural Gas Pipelines and Public Utilities, Order No. 809, 80 FR 
23197 (Apr. 24, 2015), FERC Stats. & Regs. ] 31,368 (cross-
referenced at 151 FERC ] 61,049 (2015)).
---------------------------------------------------------------------------

I. Background

    2. On April 16, 2015, the Commission issued Order No. 809, which 
revised the Commission's regulations relating to the scheduling of 
transportation service on interstate natural gas pipelines to better 
coordinate the scheduling practices of the wholesale natural gas and 
electric industries, as well as to provide additional scheduling 
flexibility to all shippers on interstate natural gas pipelines. Among 
other things, the Commission revised its regulations to incorporate by 
reference the modified NAESB Wholesale Gas Quadrant (WGQ) Business 
Practice Standards, which revised the standard nomination timeline for 
interstate natural gas pipelines. The current and revised nomination 
timelines are as follows:

------------------------------------------------------------------------
All times Central Clock Time      Current NAESB         Revised NAESB
            (CCT)                   standards             standards
------------------------------------------------------------------------
Timely:
    Nomination Deadline.....  11:30 AM............  1:00 PM.
    Confirmations...........  ....................  4:30 PM.
    Schedule Issued.........  4:30 PM.............  5:00 PM.
    Start of Gas Flow.......  9:00 AM.............  9:00 AM.
Evening:
    Nomination Deadline.....  6:00 PM.............  6:00 PM.
    Confirmations...........  9:00 PM.............  8:30 PM.
    Schedule Issued.........  10:00 PM............  9:00 PM.
    Start of Gas Flow.......  9:00 AM.............  9:00 AM.
Intraday 1:
    Nomination Deadline.....  10:00 AM............  10:00 AM.
    Confirmations...........  1:00 PM.............  12:30 PM.
    Schedule Issued.........  2:00 PM.............  1:00 PM.
    Start of Gas Flow.......  5:00 PM.............  2:00 PM.
    IT Bump Rights..........  bumpable............  bumpable.
Intraday 2:
    Nomination Deadline.....  5:00 PM.............  2:30 PM.
    Confirmations...........  8:00 PM.............  5:00 PM.
    Schedule Issued.........  9:00 PM.............  5:30 PM.
    Start of Gas Flow.......  9:00 PM.............  6:00 PM.
    IT Bump Rights..........  no bump.............  bumpable.
Intraday 3:
    Nomination Deadline.....  ....................  7:00 PM.
    Confirmations...........  ....................  9:30 PM.
    Schedule Issued.........  ....................  10:00 PM.

[[Page 46980]]

 
    Start of Gas Flow.......  ....................  10:00 PM.
    IT Bump Rights..........  ....................  no bump.
------------------------------------------------------------------------

    3. In conjunction with moving the Timely Nomination Cycle 
nomination deadline to 1:00 p.m. CCT, the modified NAESB standards 
adopted in Order No. 809 included revised capacity release standards 
that allow shippers to acquire released capacity in time to be 
nominated in the Timely Nomination Cycle on the same day the shipper 
receives the capacity release.\2\ For example, the modified standards 
require that pipelines post awards for biddable capacity no later than 
12:00 p.m. CCT, instead of 3:00 p.m. CCT as under the previous 
standards.
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    \2\ The Commission's current capacity release program allows a 
firm shipper to sell (or release) its capacity to another entity 
when it is not using it. The pipeline contracts with, and receives 
payment from, the replacement shipper and then issues a credit to 
the releasing shipper. The results of all releases are posted by the 
pipeline on its Internet Web site and made available through 
standardized, downloadable files.
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    4. The Commission required interstate natural gas pipelines to 
implement the revised NAESB standards beginning on April 1, 2016.

II. Request for Clarification

    5. On May 28, 2015, as supplemented on June 26, 2015, the 
Associations filed a request to clarify the date interstate natural gas 
pipelines must implement the modified NAESB standards as required by 
Order No. 809. The Associations ask the Commission to act expeditiously 
on the clarifications, which are discussed below.
    6. The Associations state that the April 1, 2016 implementation 
date does not explicitly define whether the implementation date refers 
to the date for which the nominations are effective or the date on 
which the day-ahead nominations (Timely and Evening Nomination Cycles) 
are to be made. For example, if the effective date of the nominations 
is April 1, 2016, should the new day-ahead nomination schedules be used 
on March 31, 2016? The Associations believe it is essential that the 
entire industry implement the same scenario and propose that the 
Commission clarify that implementation will become effective for the 
Gas Day that begins at 9:00 a.m. CCT on April 1, 2016. Under that 
scenario, the Timely and Evening Nomination Cycle deadlines on March 
31, 2016, for the April 1, 2016 Gas Day will be 1:00 p.m. CCT and 6:00 
p.m. CCT, respectively, and the new nomination deadlines for the 
intraday cycles will become effective on April 1, 2016. The 
Associations also propose that, for transition purposes, the new 
timeline for biddable capacity releases will be utilized for all 
biddable releases effective on March 31, 2016 or thereafter.\3\ The 
Associations include in their initial request for clarification 
Appendices A and B explaining how their proposal will be implemented.
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    \3\ Associations' Request for Clarification at Appendix B.
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    7. The Associations also propose that the Commission establish 
default provisions for capacity release transactions with the right to 
recall capacity into which the parties entered prior to April 1, 2016 
and that extend through April 1, 2016. In the absence of mutual 
agreement to the contrary, the Associations propose such transactions 
shall have the default rights set forth below. In their supplemental 
filing, the Associations explain their proposal in more detail, stating 
that it is not unduly speculative to presume that long-term capacity 
releases consummated before April 1, 2016 will contain recall 
provisions based on the obsolete scheduling timeline and may not 
function as intended after the new scheduling standards are 
implemented. The Associations state that, currently, releasing shippers 
can specify whether releases are recallable and select which cycles are 
subject to recall rights. The Associations recognize that capacity 
release transactions with recall rights may vary, and that the parties 
to the transactions may want to come to an agreement as to the capacity 
release recall rights that will be available for the Intraday 3 
Nomination Cycle beginning April 1, 2016. They believe that specifying 
default outcomes in the absence of the parties' agreement would assist 
the parties to these transactions in defining the capacity release 
recall rights that will be available on April 1, 2016 and thereafter, 
and smooth the transition to the new nomination timeline.
    8. Accordingly, the Associations request that for capacity release 
transactions with the right to recall capacity entered into prior to 
April 1, 2016, for periods that include April 1, 2016, and terminate 
thereafter, the Commission establish default rights as follows: \4\
---------------------------------------------------------------------------

    \4\ The Associations state that for all other transactions, the 
capacity release recall rights will not change.
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    [ssquf] If the transaction only specifies that recalls are 
permitted at the Intraday 1 Nomination Cycle, then for periods that 
include April 1, 2016, and thereafter, recalls only will be permitted 
at the Intraday 1 Nomination Cycle.
    [ssquf] If the transaction only specifies that recalls are 
permitted at the Intraday 2 Cycle, then for periods that include April 
1, 2016, and thereafter, recalls will be permitted at the Intraday 2 
Nomination Cycle and Intraday 3 Nomination Cycle.
    [ssquf] If the transaction specifies that recalls are permitted at 
the Intraday 1 Nomination Cycle and the Intraday 2 Nomination Cycle, 
then for periods that include April 1, 2016, and thereafter recalls 
will be permitted at the Intraday 1 Nomination Cycle, Intraday 2 
Nomination Cycle and Intraday 3 Nomination Cycle.
    9. The Associations state that shippers releasing capacity for 
periods that straddle April 1, 2016, should notify the pipeline by way 
of a letter in advance of that date if they do not want the default 
rights specified above to apply to the transaction. They state that the 
letter should memorialize that the default recall rights do not apply 
and indicate the mutual agreement of the releasing and replacement 
shippers.\5\ They state that, in the absence of such a letter provided 
to the pipeline by a shipper in advance of April 1, 2016, recall rights 
will transition according to the default rights specified above as an 
administrative transition matter without any further action. The 
Associations state that the transition of recall rights for these types 
of capacity release transactions, whether by default or through mutual 
agreement, should be administrative and should not impact other 
attributes of the capacity release, e.g., prices or quantities, and as 
such, implementation of the transition of such recall rights would not 
require posting or allow or require re-bidding. Finally, the 
Associations state that the releasing shipper should have the ability 
to recall

[[Page 46981]]

capacity under a transaction's existing provisions if it wishes to 
terminate the transaction, even if the releasing shipper and the 
replacement shipper are unable to reach agreement on a non-default 
recall transition.
---------------------------------------------------------------------------

    \5\ The Associations note that, as a supplement to the letter, 
the releasing shipper can memorialize in the special terms and 
conditions that the default rights do not apply to prospective 
releases, consistent with the letter.
---------------------------------------------------------------------------

III. Commission Determination

A. Implementation Date

    10. As requested, the Commission finds the timing proposed by the 
Associations to effectuate a reasonable implementation of Order No. 
809. We agree that having all pipelines follow the same schedule will 
provide for a smoother transition and help shippers by ensuring that 
they can conduct transactions on all pipelines under the same 
timetable.
    11. We accept the schedules proposed by the Associations as 
described in full in Appendices A and B to their request for 
clarification. In general, the new day-ahead nomination timelines will 
apply as of March 31, 2016 for those nominations that will become 
effective April 1, 2016. Specifically, the Timely and Evening 
Nomination Cycle deadlines on March 31, 2016 for the April 1, 2016 Gas 
Day will be 1:00 p.m. CCT and 6:00 p.m. CCT, respectively. Otherwise, 
the intraday nomination timelines on March 31, 2016 will follow the 
existing timeline.
    12. With respect to capacity releases, the new biddable release 
schedule will start at 9:00 a.m. CCT on March 31, 2016, for all 
releases with contracts to be effective on March 31, 2016, April 1, 
2016, or thereafter. Non-biddable releases effective on March 31, 2016 
will follow the existing posting schedule for the Intraday 1 and 
Intraday 2 Nomination Cycles, and will follow the new day-ahead 
nomination schedule for the Timely and Evening Nomination Cycles.\6\
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    \6\ For example, a non-biddable release for the Timely 
Nomination Cycle on March 31, 2016 (to become effective April 1, 
2016) must submit its notice by 12 a.m. CCT.
---------------------------------------------------------------------------

B. Default Capacity Release Recall Rights

    13. The Commission sees value in establishing a default 
interpretation of capacity release contractual recall provisions to 
assist parties in effectuating the transition between the two intraday 
and three intraday nomination schedules. While parties may vary such a 
default interpretation by agreement, a default may reduce the burden of 
negotiation on those parties satisfied with the default interpretation.
    14. Such a request, however, goes beyond merely clarifying the 
implementation date adopted in Order No. 809 and should be subject to 
notice and comment to establish that the default interpretation is 
reasonable. In particular, the Commission seeks comment on a number of 
aspects of the proposal. Commenters should address the merits of 
establishing a default approach or propose an alternative approach. 
Commenters should address whether the default should apply to all 
agreements into which the parties have entered before April 1, 2016 (as 
proposed by the Associations), or should only apply to releases entered 
into by an earlier date, such as the date of issuance of Order No. 809, 
which put the parties on notice that the nomination schedule would 
change as of April 1, 2016, and therefore permitted negotiations as to 
the applicability of recall conditions for releases that are still in 
effect on April 1, 2016 or thereafter. They also should address whether 
the default that should apply when the transaction specifies that 
recalls are permitted only at the Intraday 2 Nomination Cycle is to 
permit recalls at Intraday 2 and 3 (as proposed by the Associations) or 
only Intraday 3. Finally, commenters should address the proposal that 
``the releasing shipper should have the ability to recall capacity 
under a transaction's existing provisions if it wishes to terminate the 
transaction, even if the releasing shipper and the replacement shipper 
are unable to reach agreement on a non-default recall transition.'' \7\ 
Comments should address how this provision would operate and why the 
general default provisions should not apply to a contract in dispute if 
the parties are unable to reach agreement (and have not sought 
Commission resolution of the dispute).
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    \7\ Associations' Supplemental Filing at 3.
---------------------------------------------------------------------------

    15. Initial comments will be due 20 days from the date of this 
order and reply comments will be due 30 days from the date of this 
order.
The Commission orders:
    (A) The Commission grants the Associations' requested clarification 
as to the implementation date of Order No. 809, as discussed in the 
body of this order.
    (B) Initial comments on the Associations' proposed default recall 
rights for capacity release transactions are due 20 days from the date 
of this order with reply comments due 10 days thereafter.

    By the Commission.

    Issued: July 31, 2015.
Kimberly D. Bose,
Secretary.
[FR Doc. 2015-19292 Filed 8-5-15; 8:45 am]
BILLING CODE 6717-01-P



                                                                                     Federal Register / Vol. 80, No. 151 / Thursday, August 6, 2015 / Notices                                                                                            46979

                                                 Persons unable to file electronically                                  DEPARTMENT OF ENERGY                                                      American Public Gas Association, and
                                              should submit an original and 5 copies                                                                                                              the Interstate Natural Gas Association of
                                              of the intervention or protest to the                                     Federal Energy Regulatory                                                 America (collectively, Associations)
                                              Federal Energy Regulatory Commission,                                     Commission                                                                filed a request for the Commission to
                                              888 First Street NE., Washington, DC                                      [Docket No. RM14–2–002]                                                   clarify the manner in which all
                                              20426.                                                                                                                                              pipelines should implement the
                                                                                                                        Coordination of the Scheduling                                            standards on April 1, 2016, and a
                                                 The filings in the above-referenced
                                                                                                                        Processes of Interstate Natural Gas                                       request for clarification relating to
                                              proceeding are accessible in the                                                                                                                    interpretations of recall rights under
                                                                                                                        Pipelines and Public Utilities
                                              Commission’s eLibrary system by                                                                                                                     existing capacity release contracts in
                                              clicking on the appropriate link in the                                   Before Commissioners: Norman C. Bay,                                      light of the transition from two to three
                                              above list. They are also available for                                     Chairman; Philip D. Moeller, Cheryl A.
                                                                                                                          LaFleur, Tony Clark, and Colette D.
                                                                                                                                                                                                  intraday nomination cycles. As
                                              electronic review in the Commission’s                                                                                                               discussed below, we grant the request
                                                                                                                          Honorable.
                                              Public Reference Room in Washington,                                                                                                                with respect to the manner in which the
                                              DC. There is an eSubscription link on                                     Order on Request for Clarification and                                    pipelines should implement the
                                              the Web site that enables subscribers to                                  Notice of Comment Procedures                                              standards and request comment on their
                                              receive email notification when a                                           1. Order No. 809 revised the                                            default proposal regarding transitioning
                                              document is added to a subscribed                                         Commission’s regulations relating to the                                  capacity release contracts.
                                              docket(s). For assistance with any FERC                                   scheduling of transportation service on                                   I. Background
                                              Online service, please email                                              interstate natural gas pipelines to better
                                              FERCOnlineSupport@ferc.gov. or call                                       coordinate the scheduling practices of                                       2. On April 16, 2015, the Commission
                                              (866) 208–3676 (toll free). For TTY, call                                 the wholesale natural gas and electric                                    issued Order No. 809, which revised the
                                              (202) 502–8659.                                                           industries, as well as to provide                                         Commission’s regulations relating to the
                                                                                                                        additional scheduling flexibility to all                                  scheduling of transportation service on
                                                Dated: July 31, 2015.
                                                                                                                        shippers on interstate natural gas                                        interstate natural gas pipelines to better
                                              Nathaniel J. Davis, Sr.,                                                  pipelines.1 Among other things, Order                                     coordinate the scheduling practices of
                                              Deputy Secretary.                                                         No. 809 expanded the number of                                            the wholesale natural gas and electric
                                              [FR Doc. 2015–19306 Filed 8–5–15; 8:45 am]                                intraday nomination cycles from the                                       industries, as well as to provide
                                              BILLING CODE 6717–01–P                                                    current two to three and incorporated by                                  additional scheduling flexibility to all
                                                                                                                        reference into the Commission’s                                           shippers on interstate natural gas
                                                                                                                        regulations certain modified standards                                    pipelines. Among other things, the
                                                                                                                        developed and filed by the North                                          Commission revised its regulations to
                                                                                                                        American Energy Standards Board                                           incorporate by reference the modified
                                                                                                                        (NAESB) that revised the standard                                         NAESB Wholesale Gas Quadrant (WGQ)
                                                                                                                        nomination timeline for interstate                                        Business Practice Standards, which
                                                                                                                        natural gas pipelines. Order No. 809                                      revised the standard nomination
                                                                                                                        established an implementation date of                                     timeline for interstate natural gas
                                                                                                                        April 1, 2016. On May 28, 2015 the                                        pipelines. The current and revised
                                                                                                                        American Gas Association, the                                             nomination timelines are as follows:

                                                                                                                                                                                                                  Current NAESB                 Revised NAESB
                                                                                                   All times Central Clock Time (CCT)                                                                               standards                     standards

                                              Timely:
                                                   Nomination Deadline ..................................................................................................................................         11:30 AM ..........           1:00   PM.
                                                   Confirmations ..............................................................................................................................................   ...........................   4:30   PM.
                                                   Schedule Issued .........................................................................................................................................      4:30 PM ............          5:00   PM.
                                                   Start of Gas Flow .......................................................................................................................................      9:00 AM ............          9:00   AM.
                                              Evening:
                                                   Nomination Deadline ..................................................................................................................................         6:00 PM ............          6:00   PM.
                                                   Confirmations ..............................................................................................................................................   9:00 PM ............          8:30   PM.
                                                   Schedule Issued .........................................................................................................................................      10:00 PM ..........           9:00   PM.
                                                   Start of Gas Flow .......................................................................................................................................      9:00 AM ............          9:00   AM.
                                              Intraday 1:
                                                   Nomination Deadline ..................................................................................................................................         10:00 AM ..........           10:00 AM.
                                                   Confirmations ..............................................................................................................................................   1:00 PM ............          12:30 PM.
                                                   Schedule Issued .........................................................................................................................................      2:00 PM ............          1:00 PM.
                                                   Start of Gas Flow .......................................................................................................................................      5:00 PM ............          2:00 PM.
                                                   IT Bump Rights ...........................................................................................................................................     bumpable ..........           bumpable.
                                              Intraday 2:
                                                   Nomination Deadline ..................................................................................................................................         5:00 PM ............          2:30 PM.
                                                   Confirmations ..............................................................................................................................................   8:00 PM ............          5:00 PM.
                                                   Schedule Issued .........................................................................................................................................      9:00 PM ............          5:30 PM.
                                                   Start of Gas Flow .......................................................................................................................................      9:00 PM ............          6:00 PM.
                                                   IT Bump Rights ...........................................................................................................................................     no bump ...........           bumpable.
tkelley on DSK3SPTVN1PROD with NOTICES




                                              Intraday 3:
                                                   Nomination Deadline ..................................................................................................................................         ...........................   7:00 PM.
                                                   Confirmations ..............................................................................................................................................   ...........................   9:30 PM.
                                                   Schedule Issued .........................................................................................................................................      ...........................   10:00 PM.

                                                1 Coordination of the Scheduling Processes of                           Utilities, Order No. 809, 80 FR 23197 (Apr. 24,                           2015), FERC Stats. & Regs. ¶ 31,368 (cross-
                                              Interstate Natural Gas Pipelines and Public                                                                                                         referenced at 151 FERC ¶ 61,049 (2015)).



                                         VerDate Sep<11>2014         17:50 Aug 05, 2015        Jkt 235001       PO 00000       Frm 00033       Fmt 4703      Sfmt 4703       E:\FR\FM\06AUN1.SGM             06AUN1


                                              46980                                Federal Register / Vol. 80, No. 151 / Thursday, August 6, 2015 / Notices

                                                                                                                                                                                                                Current NAESB                 Revised NAESB
                                                                                                  All times Central Clock Time (CCT)                                                                              standards                     standards

                                                   Start of Gas Flow .......................................................................................................................................    ...........................   10:00 PM.
                                                   IT Bump Rights ...........................................................................................................................................   ...........................   no bump.



                                                3. In conjunction with moving the                                     the intraday cycles will become                                           Commission establish default rights as
                                              Timely Nomination Cycle nomination                                      effective on April 1, 2016. The                                           follows: 4
                                              deadline to 1:00 p.m. CCT, the modified                                 Associations also propose that, for                                          D If the transaction only specifies that
                                              NAESB standards adopted in Order No.                                    transition purposes, the new timeline                                     recalls are permitted at the Intraday 1
                                              809 included revised capacity release                                   for biddable capacity releases will be                                    Nomination Cycle, then for periods that
                                              standards that allow shippers to acquire                                utilized for all biddable releases                                        include April 1, 2016, and thereafter,
                                              released capacity in time to be                                         effective on March 31, 2016 or                                            recalls only will be permitted at the
                                              nominated in the Timely Nomination                                      thereafter.3 The Associations include in                                  Intraday 1 Nomination Cycle.
                                              Cycle on the same day the shipper                                       their initial request for clarification                                      D If the transaction only specifies that
                                              receives the capacity release.2 For                                     Appendices A and B explaining how                                         recalls are permitted at the Intraday 2
                                              example, the modified standards require                                 their proposal will be implemented.                                       Cycle, then for periods that include
                                              that pipelines post awards for biddable                                                                                                           April 1, 2016, and thereafter, recalls will
                                              capacity no later than 12:00 p.m. CCT,                                     7. The Associations also propose that                                  be permitted at the Intraday 2
                                              instead of 3:00 p.m. CCT as under the                                   the Commission establish default                                          Nomination Cycle and Intraday 3
                                              previous standards.                                                     provisions for capacity release                                           Nomination Cycle.
                                                4. The Commission required interstate                                 transactions with the right to recall                                        D If the transaction specifies that
                                              natural gas pipelines to implement the                                  capacity into which the parties entered                                   recalls are permitted at the Intraday 1
                                              revised NAESB standards beginning on                                    prior to April 1, 2016 and that extend                                    Nomination Cycle and the Intraday 2
                                              April 1, 2016.                                                          through April 1, 2016. In the absence of                                  Nomination Cycle, then for periods that
                                                                                                                      mutual agreement to the contrary, the                                     include April 1, 2016, and thereafter
                                              II. Request for Clarification                                           Associations propose such transactions                                    recalls will be permitted at the Intraday
                                                 5. On May 28, 2015, as supplemented                                  shall have the default rights set forth                                   1 Nomination Cycle, Intraday 2
                                              on June 26, 2015, the Associations filed                                below. In their supplemental filing, the                                  Nomination Cycle and Intraday 3
                                              a request to clarify the date interstate                                Associations explain their proposal in                                    Nomination Cycle.
                                              natural gas pipelines must implement                                    more detail, stating that it is not unduly                                   9. The Associations state that shippers
                                              the modified NAESB standards as                                         speculative to presume that long-term                                     releasing capacity for periods that
                                              required by Order No. 809. The                                          capacity releases consummated before                                      straddle April 1, 2016, should notify the
                                              Associations ask the Commission to act                                  April 1, 2016 will contain recall                                         pipeline by way of a letter in advance
                                              expeditiously on the clarifications,                                    provisions based on the obsolete                                          of that date if they do not want the
                                              which are discussed below.                                              scheduling timeline and may not                                           default rights specified above to apply
                                                 6. The Associations state that the                                   function as intended after the new                                        to the transaction. They state that the
                                              April 1, 2016 implementation date does                                  scheduling standards are implemented.                                     letter should memorialize that the
                                              not explicitly define whether the                                       The Associations state that, currently,                                   default recall rights do not apply and
                                              implementation date refers to the date                                                                                                            indicate the mutual agreement of the
                                                                                                                      releasing shippers can specify whether
                                              for which the nominations are effective                                                                                                           releasing and replacement shippers.5
                                                                                                                      releases are recallable and select which
                                              or the date on which the day-ahead                                                                                                                They state that, in the absence of such
                                                                                                                      cycles are subject to recall rights. The
                                              nominations (Timely and Evening                                                                                                                   a letter provided to the pipeline by a
                                                                                                                      Associations recognize that capacity
                                              Nomination Cycles) are to be made. For                                                                                                            shipper in advance of April 1, 2016,
                                              example, if the effective date of the                                   release transactions with recall rights
                                                                                                                      may vary, and that the parties to the                                     recall rights will transition according to
                                              nominations is April 1, 2016, should the                                                                                                          the default rights specified above as an
                                              new day-ahead nomination schedules                                      transactions may want to come to an
                                                                                                                      agreement as to the capacity release                                      administrative transition matter without
                                              be used on March 31, 2016? The                                                                                                                    any further action. The Associations
                                              Associations believe it is essential that                               recall rights that will be available for the
                                                                                                                      Intraday 3 Nomination Cycle beginning                                     state that the transition of recall rights
                                              the entire industry implement the same                                                                                                            for these types of capacity release
                                              scenario and propose that the                                           April 1, 2016. They believe that
                                                                                                                      specifying default outcomes in the                                        transactions, whether by default or
                                              Commission clarify that implementation                                                                                                            through mutual agreement, should be
                                              will become effective for the Gas Day                                   absence of the parties’ agreement would
                                                                                                                      assist the parties to these transactions in                               administrative and should not impact
                                              that begins at 9:00 a.m. CCT on April 1,                                                                                                          other attributes of the capacity release,
                                              2016. Under that scenario, the Timely                                   defining the capacity release recall
                                                                                                                      rights that will be available on April 1,                                 e.g., prices or quantities, and as such,
                                              and Evening Nomination Cycle                                                                                                                      implementation of the transition of such
                                              deadlines on March 31, 2016, for the                                    2016 and thereafter, and smooth the
                                                                                                                      transition to the new nomination                                          recall rights would not require posting
                                              April 1, 2016 Gas Day will be 1:00 p.m.                                                                                                           or allow or require re-bidding. Finally,
                                              CCT and 6:00 p.m. CCT, respectively,                                    timeline.
                                                                                                                                                                                                the Associations state that the releasing
                                              and the new nomination deadlines for                                       8. Accordingly, the Associations                                       shipper should have the ability to recall
                                                                                                                      request that for capacity release
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                                                2 The Commission’s current capacity release
                                                                                                                      transactions with the right to recall                                        4 The Associations state that for all other
                                              program allows a firm shipper to sell (or release) its
                                              capacity to another entity when it is not using it.                     capacity entered into prior to April 1,                                   transactions, the capacity release recall rights will
                                              The pipeline contracts with, and receives payment                       2016, for periods that include April 1,                                   not change.
                                                                                                                                                                                                   5 The Associations note that, as a supplement to
                                              from, the replacement shipper and then issues a                         2016, and terminate thereafter, the
                                              credit to the releasing shipper. The results of all                                                                                               the letter, the releasing shipper can memorialize in
                                              releases are posted by the pipeline on its Internet                                                                                               the special terms and conditions that the default
                                              Web site and made available through standardized,                        3 Associations’ Request for Clarification at                             rights do not apply to prospective releases,
                                              downloadable files.                                                     Appendix B.                                                               consistent with the letter.



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                                                                           Federal Register / Vol. 80, No. 151 / Thursday, August 6, 2015 / Notices                                                   46981

                                              capacity under a transaction’s existing                 No. 809 and should be subject to notice                   Issued: July 31, 2015.
                                              provisions if it wishes to terminate the                and comment to establish that the                       Kimberly D. Bose,
                                              transaction, even if the releasing shipper              default interpretation is reasonable. In                Secretary.
                                              and the replacement shipper are unable                  particular, the Commission seeks                        [FR Doc. 2015–19292 Filed 8–5–15; 8:45 am]
                                              to reach agreement on a non-default                     comment on a number of aspects of the                   BILLING CODE 6717–01–P
                                              recall transition.                                      proposal. Commenters should address
                                              III. Commission Determination                           the merits of establishing a default
                                                                                                      approach or propose an alternative                      DEPARTMENT OF ENERGY
                                              A. Implementation Date                                  approach. Commenters should address
                                                 10. As requested, the Commission                     whether the default should apply to all                 Federal Energy Regulatory
                                              finds the timing proposed by the                                                                                Commission
                                                                                                      agreements into which the parties have
                                              Associations to effectuate a reasonable                 entered before April 1, 2016 (as                        Combined Notice of Filings
                                              implementation of Order No. 809. We                     proposed by the Associations), or
                                              agree that having all pipelines follow                  should only apply to releases entered                     Take notice that the Commission has
                                              the same schedule will provide for a                    into by an earlier date, such as the date               received the following Natural Gas
                                              smoother transition and help shippers                   of issuance of Order No. 809, which put                 Pipeline Rate and Refund Report filings:
                                              by ensuring that they can conduct                       the parties on notice that the                          Filings Instituting Proceedings
                                              transactions on all pipelines under the                 nomination schedule would change as
                                              same timetable.                                                                                                    Docket Numbers: RP15–1138–000.
                                                                                                      of April 1, 2016, and therefore permitted                  Applicants: Algonquin Gas
                                                 11. We accept the schedules proposed
                                                                                                      negotiations as to the applicability of                 Transmission, LLC.
                                              by the Associations as described in full
                                                                                                      recall conditions for releases that are                    Description: Section 4(d) Rate Filing:
                                              in Appendices A and B to their request
                                                                                                      still in effect on April 1, 2016 or                     BUG 2015–08–01 Ramapo Release to be
                                              for clarification. In general, the new
                                              day-ahead nomination timelines will                     thereafter. They also should address                    effective 8/1/2015.
                                              apply as of March 31, 2016 for those                    whether the default that should apply                      Filed Date: 7/29/15.
                                              nominations that will become effective                  when the transaction specifies that                        Accession Number: 20150729–5025.
                                              April 1, 2016. Specifically, the Timely                 recalls are permitted only at the                          Comments Due: 5 p.m. ET 8/10/15.
                                              and Evening Nomination Cycle                            Intraday 2 Nomination Cycle is to                          Docket Numbers: RP15–1139–000.
                                              deadlines on March 31, 2016 for the                     permit recalls at Intraday 2 and 3 (as                     Applicants: Algonquin Gas
                                              April 1, 2016 Gas Day will be 1:00 p.m.                 proposed by the Associations) or only                   Transmission, LLC.
                                              CCT and 6:00 p.m. CCT, respectively.                    Intraday 3. Finally, commenters should                     Description: Section 4(d) Rate Filing:
                                              Otherwise, the intraday nomination                      address the proposal that ‘‘the releasing               KeySpan 2015–08–01 Ramapo Release
                                              timelines on March 31, 2016 will follow                 shipper should have the ability to recall               to be effective 8/1/2015.
                                              the existing timeline.                                  capacity under a transaction’s existing                    Filed Date: 7/29/15.
                                                 12. With respect to capacity releases,               provisions if it wishes to terminate the                   Accession Number: 20150729–5027.
                                                                                                                                                                 Comments Due: 5 p.m. ET 8/10/15.
                                              the new biddable release schedule will                  transaction, even if the releasing shipper
                                              start at 9:00 a.m. CCT on March 31,                     and the replacement shipper are unable                     Docket Numbers: RP15–1140–000.
                                              2016, for all releases with contracts to                to reach agreement on a non-default                        Applicants: Algonquin Gas
                                              be effective on March 31, 2016, April 1,                                                                        Transmission, LLC.
                                                                                                      recall transition.’’ 7 Comments should
                                                                                                                                                                 Description: Section 4(d) Rate Filing:
                                              2016, or thereafter. Non-biddable                       address how this provision would                        BBPC 2015–08–01 Releases to EDF
                                              releases effective on March 31, 2016                    operate and why the general default                     Trading to be effective 8/1/2015.
                                              will follow the existing posting                        provisions should not apply to a                           Filed Date: 7/29/15.
                                              schedule for the Intraday 1 and Intraday                contract in dispute if the parties are                     Accession Number: 20150729–5028.
                                              2 Nomination Cycles, and will follow                    unable to reach agreement (and have not                    Comments Due: 5 p.m. ET 8/10/15.
                                              the new day-ahead nomination schedule                   sought Commission resolution of the                        Docket Numbers: RP15–1141–000.
                                              for the Timely and Evening Nomination                   dispute).                                                  Applicants: Algonquin Gas
                                              Cycles.6                                                                                                        Transmission, LLC.
                                                                                                         15. Initial comments will be due 20
                                              B. Default Capacity Release Recall                      days from the date of this order and                       Description: Section 4(d) Rate Filing:
                                              Rights                                                  reply comments will be due 30 days                      ConEdison 2015–08–01 Ramapo Release
                                                 13. The Commission sees value in                     from the date of this order.                            to Spark Energy to be effective 8/1/2015.
                                                                                                                                                                 Filed Date: 7/29/15.
                                              establishing a default interpretation of
                                                                                                      The Commission orders:                                     Accession Number: 20150729–5029.
                                              capacity release contractual recall                                                                                Comments Due: 5 p.m. ET 8/10/15.
                                              provisions to assist parties in                            (A) The Commission grants the                           Docket Numbers: RP15–1142–000.
                                              effectuating the transition between the                 Associations’ requested clarification as                   Applicants: Questar Pipeline
                                              two intraday and three intraday                         to the implementation date of Order No.                 Company.
                                              nomination schedules. While parties                     809, as discussed in the body of this                      Description: Section 4(d) Rate Filing:
                                              may vary such a default interpretation                  order.                                                  ? 31, Capacity Reserved for Future
                                              by agreement, a default may reduce the                                                                          Expansion, Version 1.0.0 to be effective
                                              burden of negotiation on those parties                     (B) Initial comments on the
                                                                                                      Associations’ proposed default recall                   9/1/2015.
                                              satisfied with the default interpretation.                                                                         Filed Date: 7/29/15.
                                                 14. Such a request, however, goes                    rights for capacity release transactions
tkelley on DSK3SPTVN1PROD with NOTICES




                                                                                                      are due 20 days from the date of this                      Accession Number: 20150729–5062.
                                              beyond merely clarifying the                                                                                       Comments Due: 5 p.m. ET 8/10/15.
                                              implementation date adopted in Order                    order with reply comments due 10 days
                                                                                                      thereafter.                                                Docket Numbers: RP15–1143–000.
                                                6 For example, a non-biddable release for the
                                                                                                                                                                 Applicants: Alliance Pipeline L.P.
                                                                                                        By the Commission.                                       Description: Section 4(d) Rate Filing:
                                              Timely Nomination Cycle on March 31, 2016 (to
                                              become effective April 1, 2016) must submit its                                                                 August 1–14 2015 Auction to be
                                              notice by 12 a.m. CCT.                                    7 Associations’   Supplemental Filing at 3.           effective 8/1/2015.


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Document Created: 2018-02-23 10:55:26
Document Modified: 2018-02-23 10:55:26
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionNotices
FR Citation80 FR 46979 

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