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| TSP/TSP Name: 6900518-SOUTHERN NATURAL GAS CO. | Critical: Y |
| Notice Type Desc (1): RATES AND CHARGES | Notice Type Desc (2): FUEL AND GLU |
| Notice Eff Date/Time: 10/31/2024 2:35:12PM | Notice End Date/Time: 11/01/2024 9:00:00am |
| Post Date/Time: 10/31/2024 2:35:12 PM | Notice ID: 709993 |
| Reqrd Rsp: 1 | Rsp Date: 10/31/2024 |
| Notice Stat Desc: INITIATE | Prior Notice: |
| Subject: Sales of Fuel for ElectricityCostsUpdate |
October 31, 2024
To: All Shippers on the Southern Natural Gas (SNG) System
Re: Update on Sales of Fuel for Electricity Costs
Section 35.5 of the General Terms and Conditions of the SNG FERC Gas Tariff sets forth how SNG will account for gains and losses on the sale of transportation fuel retained to satisfy the cost of electric compression. First, SNG calculates the dth available for sale each month by dividing the eligible electric costs by the prescribed index price for that month. These dth are subsequently sold. SNG then determines the difference between the sales proceeds and the cost of electricity used for electric compression during the applicable Summer or Winter Base Period. If the net difference is positive, then within 80 days after the end of the applicable Base Period, SNG will provide shippers a monetary credit on their bills based on the calculation set forth in the tariff. If the difference is negative, then it is recorded in the applicable Winter or Summer Deferred Electricity Losses Account and such amount is carried over to the next Winter or Summer Base Period, as applicable.
This mechanism was placed into effect under the Rate Case Settlement approved in Docket No. RP13-886. As shown below, the difference for the most recent Summer Base Period of April 1, 2024 through September 30, 2024 is $2,749,763. Per the terms of Section 35.5(2) in the Tariff, 85% of this total gain, which is $2,337,299, will be credited among the SNG customers' bills that are sent out around December 10, 2024. The total credit is allocated pro rata among the Shippers based on each Shipper's volume of gas retained for transportation fuel compared to the total volume of gas retained from all Shippers for transportation fuel during the Summer Base Period of April 1, 2024 through September 30, 2024.
If you have any questions about this information, please contact me or your Account Manager.
Carl Haga
Vice President, Commercial
Southern Natural Gas Company, L.L.C.
carl_haga@kindermorgan.com
205-325-7544
Southern Natural Gas Company, L.L.C.
Net Gain/(Loss) on Sale of Fuel for Electric Compression for Summer Period 2024
SUMMER PERIOD 2024
|
Line No |
|
April 2024 |
May 2024 |
June 2024 |
July 2024 |
August 2024 |
Sept. 2024 |
Total April 2024 – Sept. 2024 |
Carryover Balance From April 2023 – Sept. 2023 Summer Period |
Total April – Sept. 2024 w/Carryover |
|
1 |
Electric Compression Cost |
$2,142,798 |
$2,567,182 |
$5,198,668 |
$5,483,536 |
$5,881,230 |
$4,202,121 |
$25,475,535 |
|
|
|
2 |
Index Price per Dth |
$1.59 |
$2.49 |
$3.09 |
$2.38 |
$2.04 |
$2.35 |
|
|
|
|
3 |
DTH to Sell (line #1 / line #2) |
1,347,672 |
1,030,997 |
1,682,417 |
2,304,007 |
2,882,956 |
1,788,137 |
|
|
|
|
4 |
Sales Proceeds |
$4,261,681 /1/ |
$3,005,117 /2/ |
$3,909,024 /3/ |
$5,256,629 /4/ |
$6,590,219 /5/ |
$5,202,628 /6/ |
$28,225,298 |
|
|
|
5 |
Gain/(Loss) (line #4 minus line #1) |
$2,118,883 |
$437,935 |
($1,289,644) |
($226,907) |
$708,989 |
$1,000,507 |
$2,749,763 |
$0 |
$2,749,763 /7/ |
|
|
|
1/ Sales price of $3.162 (2,653 dth at $1.77 and 1,345,019 dth at $3.165) |
|
2/ Sales price of $2.915 (2,523 dth at $3.165, 719,200 dth at $2.9125 and 309,274 dth at $2.918) |
|
3/ Sales price of $2.323 (726 dth at $2.918, 450,000 dth at $2.351, 750,000 dth at $2.315 and 481,691dth at $2.31) |
|
4/ Sales price of $2.282 (1,309 dth at $2.31, 1,704,000 dth at $2.275 and 598,698 dth at $2.30) |
|
5/ Sales price of $2.286 (1,302 dth at $2.30, 620,000 dth at $2.307, 775,000 dth at $2.29, 558,000 dth at $2.27 and 928,654 dth at $2.278) |
|
6/ Sales price of $2.91 (1,346 dth at $2.278 and 1,786,791dth at $2.91) |
7/ If negative, net total loss to be carried over to next summer's calculations per Sec. 35.5 of the GT&C of SNG's Tariff. If positive, 85% of any cumulative gain at the end of the summer period
will be refunded to customers in December 2024 as a credit on their bill per Sec. 35.5 of the GT&C of SNG's Tariff ($2,749,763 X 85% = $2,337,299 to be refunded to customers on 12/10/23 bills.)
| TSP/TSP Name: 6900518-SOUTHERN NATURAL GAS CO. | Critical: Y |
| Notice Type Desc (1): RATES AND CHARGES | Notice Type Desc (2): FUEL AND GLU |
| Notice Eff Date/Time: 10/31/2024 2:35:12PM | Notice End Date/Time: 11/01/2024 9:00:00am |
| Post Date/Time: 10/31/2024 2:35:12 PM | Notice ID: 709993 |
| Reqrd Rsp: 1 | Rsp Date: 10/31/2024 |
| Notice Stat Desc: INITIATE | Prior Notice: |
| Subject: Sales of Fuel for ElectricityCostsUpdate |
October 31, 2024
To: All Shippers on the Southern Natural Gas (SNG) System
Re: Update on Sales of Fuel for Electricity Costs
Section 35.5 of the General Terms and Conditions of the SNG FERC Gas Tariff sets forth how SNG will account for gains and losses on the sale of transportation fuel retained to satisfy the cost of electric compression. First, SNG calculates the dth available for sale each month by dividing the eligible electric costs by the prescribed index price for that month. These dth are subsequently sold. SNG then determines the difference between the sales proceeds and the cost of electricity used for electric compression during the applicable Summer or Winter Base Period. If the net difference is positive, then within 80 days after the end of the applicable Base Period, SNG will provide shippers a monetary credit on their bills based on the calculation set forth in the tariff. If the difference is negative, then it is recorded in the applicable Winter or Summer Deferred Electricity Losses Account and such amount is carried over to the next Winter or Summer Base Period, as applicable.
This mechanism was placed into effect under the Rate Case Settlement approved in Docket No. RP13-886. As shown below, the difference for the most recent Summer Base Period of April 1, 2024 through September 30, 2024 is $2,749,763. Per the terms of Section 35.5(2) in the Tariff, 85% of this total gain, which is $2,337,299, will be credited among the SNG customers' bills that are sent out around December 10, 2024. The total credit is allocated pro rata among the Shippers based on each Shipper's volume of gas retained for transportation fuel compared to the total volume of gas retained from all Shippers for transportation fuel during the Summer Base Period of April 1, 2024 through September 30, 2024.
If you have any questions about this information, please contact me or your Account Manager.
Carl Haga
Vice President, Commercial
Southern Natural Gas Company, L.L.C.
carl_haga@kindermorgan.com
205-325-7544
Southern Natural Gas Company, L.L.C.
Net Gain/(Loss) on Sale of Fuel for Electric Compression for Summer Period 2024
SUMMER PERIOD 2024
|
Line No |
|
April 2024 |
May 2024 |
June 2024 |
July 2024 |
August 2024 |
Sept. 2024 |
Total April 2024 – Sept. 2024 |
Carryover Balance From April 2023 – Sept. 2023 Summer Period |
Total April – Sept. 2024 w/Carryover |
|
1 |
Electric Compression Cost |
$2,142,798 |
$2,567,182 |
$5,198,668 |
$5,483,536 |
$5,881,230 |
$4,202,121 |
$25,475,535 |
|
|
|
2 |
Index Price per Dth |
$1.59 |
$2.49 |
$3.09 |
$2.38 |
$2.04 |
$2.35 |
|
|
|
|
3 |
DTH to Sell (line #1 / line #2) |
1,347,672 |
1,030,997 |
1,682,417 |
2,304,007 |
2,882,956 |
1,788,137 |
|
|
|
|
4 |
Sales Proceeds |
$4,261,681 /1/ |
$3,005,117 /2/ |
$3,909,024 /3/ |
$5,256,629 /4/ |
$6,590,219 /5/ |
$5,202,628 /6/ |
$28,225,298 |
|
|
|
5 |
Gain/(Loss) (line #4 minus line #1) |
$2,118,883 |
$437,935 |
($1,289,644) |
($226,907) |
$708,989 |
$1,000,507 |
$2,749,763 |
$0 |
$2,749,763 /7/ |
|
|
|
1/ Sales price of $3.162 (2,653 dth at $1.77 and 1,345,019 dth at $3.165) |
|
2/ Sales price of $2.915 (2,523 dth at $3.165, 719,200 dth at $2.9125 and 309,274 dth at $2.918) |
|
3/ Sales price of $2.323 (726 dth at $2.918, 450,000 dth at $2.351, 750,000 dth at $2.315 and 481,691dth at $2.31) |
|
4/ Sales price of $2.282 (1,309 dth at $2.31, 1,704,000 dth at $2.275 and 598,698 dth at $2.30) |
|
5/ Sales price of $2.286 (1,302 dth at $2.30, 620,000 dth at $2.307, 775,000 dth at $2.29, 558,000 dth at $2.27 and 928,654 dth at $2.278) |
|
6/ Sales price of $2.91 (1,346 dth at $2.278 and 1,786,791dth at $2.91) |
7/ If negative, net total loss to be carried over to next summer's calculations per Sec. 35.5 of the GT&C of SNG's Tariff. If positive, 85% of any cumulative gain at the end of the summer period
will be refunded to customers in December 2024 as a credit on their bill per Sec. 35.5 of the GT&C of SNG's Tariff ($2,749,763 X 85% = $2,337,299 to be refunded to customers on 12/10/23 bills.)