Capacity Allocation and Constraint

Rule 14 describes the procedures put in place when Pacific Gas and Electric Company must interrupt or reduce natural gas service to customers for operational or regulatory reasons. Interruptions may be due to actual or anticipated supply or capacity shortages.

Delivery Point Service Restrictions

Issue - Underdelivery to specific delivery points due to:

• Capacity constraints or supply shortages on Pacific Gas and Electric Company's system
• Constraints on local transmission or distribution system
• Operating conditions
• Regulatory requirements

Pacific Gas and Electric Company Actions when there are Underdeliveries

• Attempt to give advance notice prior to service restriction
• Interrupt or reduce deliveries and then allocate remaining capacity based on the priority of each backbone transportation contract:
  • As-available service is reduced first, beginning with the lowest priced contracts
  • Firm service is reduced second, if necessary, on a pro rata basis

Receipt Point Capacity Allocations (RPCA)

Issue - Nominations exceed available capacity at a specific receipt point

Pacific Gas and Electric Company Actions when Nominations exceed Capacity

• Allocate available capacity at a specific receipt point based on the priority of each backbone transportation contract
  • As-available service is reduced first, beginning with the lowest priced contracts
  • Firm service is reduced second, if necessary, on a pro rata basis

Customer Actions

• Customers have the following options:
  • Arrange for supply to be delivered to another point
  • Reduce or stop receiving service
  • Receive G-BAL supplies (if available)

Charges for Noncompliance

• No charges imposed
• Schedule G-BAL cashout provisions apply to any untraded imbalances greater than ±5%

Priority of Service

Storage Injection/Withdrawal and Transportation To/From Storage

• Transportation priority to or from storage is based on the priority of each backbone transportation contract
• Injection or withdrawal priority at Pacific Gas and Electric Company's storage facilities is determined by the priority of each storage contract:
  • As-available service is reduced first, beginning with the lowest priced contracts
  • Firm service is reduced second, if necessary, on a pro rata basis

Golden Gate Market Center Transactions

• Golden Gate Market Center transactions are scheduled according to highest economic value to the market center
• If two transactions have equal value, priority is on a first-come, first-served basis