Public Service Company of Colorado, an Operating Company of Xcel Energy

Background Information regarding Operational Flow Order Notices

The announcement implementinganOperational Flow Order (OFO)has been streamlined to include only the basic variables of the OFO so the notice can be prepared quickly and communicate the critical elements. These basic variables include: whether the OFO is for over or under-delivery, effective and projected end dates, operational areas, tolerance ranges, penalties, nomination deadline, and cause(s).

For informational purposes, the following provides more detailed information concerning standard OFO requirements and actions that normally don’t change (basically, the “boiler plate” provisions historically contained in OFO notices).

What is an “under-delivery” OFO?

  • A Gas Day when a Shipper’s facilities cannot burn more gas than has been delivered into PSCo’s pipeline system for the Shipper’s contract operational area, based on the specifications given in the Tolerance Range. i.e., don’t under-deliver…PSCo doesn’t have excess gas available to cover the Shipper’s shortage, so the Shipper is responsible for providing their own supplies.

What is an “over-delivery” OFO?

  • A Gas Day when the Shipper’s facilities must burn the gas that is delivered into PSCo’s pipeline system for the Shipper’s contract operational area, based on the specifications given in the Tolerance Range. i.e., don’t over-deliver…PSCo can’t accept extra gas into the system.

When does the OFO begin and end?

  • All OFOs are effective at the beginning of the Gas Day. If an OFO is issued after a Gas Day actually begins (i.e., a “same-day OFO”), it is effective retroactive to 8:00 AMMountain Time (MT) that morning, which is the beginning of that Gas Day.
  • All OFOs terminate at the end of a Gas Day. i.e., an OFO issued for Gas Day October 25 will begin at 8:00 AM MT the 25th, and end at 8:00 AM MT the morning of the 26th.
  • The initial OFO announcement contains an end-date based on the information available when the OFO was first posted. However, circumstances might require extending the OFO. If this occurs, an update will be posted on the transportation website identifying the revised end-date.

What is the Tolerance Range?

  • By contract operational area, the daily quantity or percentage of imbalance gas that can be incurred before penalty/cashout. Imbalances exceeding the Tolerance Range are unauthorized overruns.
  • A negative tolerance, i.e.., -5%, is associated with an under-delivery Tolerance Range
  • A positive tolerance, i.e., 5%, is associated with an over-delivery Tolerance Range

How do the Cashouts and Penalties work?

  • The OFO notice will identify the charges assessed to unauthorized overrun quantities (the daily imbalances exceeding the posted Tolerance Ranges). The charges can be the applicable imbalance cashout price, a penalty, or both:
  • Under-delivery OFOs: unauthorized overrun quantities are sold to the Shipper at the under-delivery cashout price in effect for the month.
  • Over-delivery OFOs: unauthorized overrun quantities are purchased by PSCo at the over-delivery cashout price in effect for the month.
  • Penalty: A penalty up to $25.00 is charged to the Shipper for unauthorized overrun quantities.

Minimum Imbalance Quantity Threshold:

  • Neither Cashout and/or Penalty will be charged unless the imbalance Dth quantity exceeds the posted threshold Dth quantity allowed per day.

Revised Nominations:

  • Revised nominations can be placed until noon for each OFO Gas Day.
  • If the nomination deadline is extended, it will be identified in the notice.
  • Donna Woods (303-273-4826) or Sharon Gordon (303-273-4724) should be called for questions concerning nominations.
  • Shippers must coordinate with their interconnect operator to ensure their nominations are confirmed, which also ensures the interconnect operator knows the quantity it has committed to deliver toPSCo on behalf of the Shipper.

Actual Allocations:

  • During an under-delivery OFO, PSCo will deliver the quantity nominated, or the allocated quantity of the interconnecting party, whichever is lower.
  • Allocations will be based on actual deliveries on a pro rata basis per confirmed nominations.

Prior Month Imbalance Resolution Gas:

  • During an OFO, certain types of imbalance gas are unavailable:
  • Under-Delivery OFO: don’t reduce your nominations because you have a prior month over-delivery imbalance “bank”. A prior month imbalance “bank” is not available as a supply source during an Under-Delivery OFO.
  • Over-Delivery OFO: don’t schedule extra gas to payback a prior month imbalance during an Over-Delivery OFO. PSCo doesn’t have the extra capacity to accept the gas.

Updates concerning the status of the OFO are posted on PSCo’s Gas Transportation Website, which can be accessed through the corporate website at Xcelenergy.com. General questions concerning the OFO can also be directed to a Gas Transportation Representative: Diane Christner at 303-571-7879; Pat Downey at 303-571-7612; Janet Reynolds at 303-571-7911; or Micah Zamora at 303-571-7891.

Please refer to PSCo’s Gas Transportation Tariff General Terms and Conditions for the complete tariff provisions concerning OFOs.