TC Energy/Columbia Gas Transmission, LLC (TCO) filed a rate case with the U.S. Federal Energy Regulatory Commission (FERC) on July 31, 2020. As part of TCO’s filing, sections 19.4 and 19.7 of the General Terms and Conditions of the tariff were modified that established a Daily Scheduling penalty that is in effect every day. In regards to the daily scheduling, a penalty of one (1) times Transporter’s Rate Schedule ITS maximum rate shall be assessed to Shipper on any difference greater than 10% between daily scheduled quantities and actual deliveries at a physical delivery point. This penalty impacts scheduled volumes and delivered volumes across all the Company’s (Columbia Gas of Kentucky) Pipeline Scheduling Points (PSPs). 

The tariff changes discussed above are in effect, but subject to refund pending the resolution of the TCO rate case. The NiSource Distribution Companies (including Columbia Gas of Kentucky) are challenging these tariff provisions at FERC.  As part of the settlement discussions at FERC, TCO waived these penalties through March 8, 2021. Thus, the new penalties will go in effect, subject to refund, on March 9, 2021 unless TCO takes action to waive the penalties beyond March 8th.

Columbia Gas of Kentucky is anticipating it may be required to issue operational orders, including a Balance Service Interruption (BSI) or Curtailment on a daily basis, restricting nominated quantities such that total deliveries to the city gate are aligned with customer demand.

Columbia Gas of Kentucky requested and TCO established Transit Points as a tool to help minimize city gate imbalances within the boundaries set by TCO while preserving access to banking and balancing services.  For the purposes described herein, Transit Points were established for all NiSource Gas Local Distribution Companies across all PSPs. 

Transit points are considered a city gate at storage. Customers or their suppliers utilizing the Transit Point will be required to nominate this path in Aviator just as they do for deliveries to the specific PSP. Please note the sum total nominated volumes at both the Transit Point and the point within the PSP should still comply with Columbia Gas of Kentucky’s Tariff provisions, as well as any potential Orders.  The exact details will be provided in Columbia Gas of Kentucky’s notice if and when it is issued.   

Small Volume Aggregation Service Marketers (aka Choice Marketers) may be instructed to split their nominated deliveries with a portion being scheduled to the appropriate PSP in accordance with the anticipated demand of the Choice customers in that PSP, and the remainder scheduled to the Transit Point.

Please refer to FERC Docket RP20-1060 found on the FERC website https://elibrary.ferc.gov/eLibrary/search for details about TCO’s rate case.

Please refer to our Q&A and your assigned Columbia representative for additional questions.