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Algonquin Gas Transmission, LLC
Not a critical notice
05:30:18 PM
05:30:18 PM
Other/Rates and Charges
05:30:18 PM

No response required

Algonquin Gas Transmission Fuel Retention Quantity Settlement - Response to Questions from 11-6-2018 Teleconference

Notice Text:

During the webcast/teleconference for interested parties, held on Tuesday, November 6, 2018 at 2:00 p.m. ET / 1:00 p.m. CT, Algonquin Gas Transmission, LLC ("Algonquin") committed to providing additional information in response to certain customer requests. The following information is being posted to LINK®:

1. A participant on the FRQ teleconference asked how the implementation of all aspects of the 2018 Settlement would have affected the 2018 annual FRQ filing.

Algonquin has not conducted any analysis and is unable to speculate regarding how full implementation of the 2018 Settlement would have affected the fuel reimbursement percentages and the usage surcharges reflected in the 2018 annual FRQ filing.

However, Algonquin is able to provide the following time frame for implementing the remaining components of the 2018 Settlement.

¿The 2019 annual FRQ filing will reflect the tracking of the volumetric fuel imbalance for the reporting period beginning August 1, 2018. The 2019 annual FRQ filing will also include a report regarding operational purchases and sales since October 2018.
¿Additionally, in accordance with the order approving the 2018 Settlement and Section 1.6 (Tariff Filings) of the 2018 Settlement:
oAlgonquin will submit revisions to the Rate Schedules and GT&C Sections 25, 32.5(a) and 43.1(a) (to record purchases and sales and the value of cashouts in the System Balancing Account implementation) to be effective on August 1, 2019; and
oAlgonquin will submit revisions to the Rate Schedules and GT&C Sections 32.5(b), (c), 32.6 and 43.1(a), (b) (to assess charges to recover or refund the balance in the System Balancing Account and remove the FRQ Deferred Account) to be effective no later than October 1, 2020.

2. Participants asked for additional detail underlying the imbalance/linepack adjustment costs for December 2017 and February and May 2018.

As requested, the attached schedules provide additional detail on the imbalance/linepack adjustments to the FRQ Deferred Account for each of the following months: December 2017, February 2018, and May 2018.
Using the December 2017 calculation on page 1 of the attached as an example, the first rows reflect a repricing of the November in-kind imbalance amount under the currently effective accrual basis methodology, i.e., the December cumulative in-kind imbalance was priced at $13.8450. The November total (volume of 2,725,665 Dth priced at $3.2419) was subtracted from the December total to obtain the upstream in-kind OBA gas balance for December.
Additionally, as shown on the attached, the upstream in-kind OBA gas balance was further adjusted to add costs associated with changes in linepack and upstream pipeline cashout, and to subtract net fuel reimbursed.
As noted in response no. 1 above, the FRQ Deferred Account accrual mechanism and these calculations will be replaced with the implementation of cash basis accounting and the System Balancing Account, effective August 1, 2019 and reflected in the 2020 annual FRQ filing.

Download File: Data Response.pdf