Capacity Release. The following procedures apply to all capacity release transactions including releases of capacity, acquisitions of released capacity and related contracting arrangements, as follows: • Prior to posting a capacity release deal, bidding on posted capacity release or creating a new contract request, amending an existing contract or executing a new contract on a Pipeline EBB, all with respect to capacity release, the following approvals must be obtained, as appropriate: • A signed Deal Approval Sheet from the appropriate Trader must be obtained in all circumstances; • Based on the total dollar commitment and term of the deal, additional approvals may be required as specified on the Deal Approval Sheet; and • Prior to any posting, (A) with respect to NJNG, Manager T&E NJNG or VP NJNG, and (B) with respect to NJRES, Director Energy Trading, Director of Marketing must review the posting (i) for Counterparty company affiliates, and (ii) to ensure the posting satisfies FERC’s rules with respect to what is non-biddable, as applicable; provided, however, Senior Counsel must be consulted in the event of any uncertainty with respect to compliance with FERC posting rules. • Only the Scheduling Manager, VP NJNG, Grade 8 schedulers or Grade 7 schedulers, with at least 1 year of experience, who have received appropriate training regarding rules and regulations of capacity release and who have been granted access by their supervisor, may post capacity releases, bid on capacity releases, request new contracts or amendments. If a Trader asks you to do something, but you are not sure you have authority, ASK YOUR SUPERVISOR OR VP ENERGY SERVICES FIRST. • Verify that the Trader has listed all pertinent data on the deal sheet (pipeline, path and/or contract, if recallable or not, rereleasable, biddable, rate, term, volume, and other relevant details). There must be a reason discussed in the box. Ask the Trader about any information that is missing before proceeding. If there are errors or changes necessary, the Trader must complete a new Deal Approval Form. • For capacity release, verify if the release has to be posted for bid. Releases are biddable in most circumstances; however, the following releases are not biddable: ◦ A pre-arranged release to an asset manager where the release contains a condition that the releasing shipper may call upon the replacement shipper to deliver to, or purchase from, the releasing shipper a volume of gas up to 100 percent of the daily contract demand of the released transportation or storage capacity at least five-twelfths of the period of the release, as more fully detailed in Part 284.8(h)(3) of FERC’s regulations; ◦ A pre-arranged release to a marketer participating in a state-regulated retail access program, as more fully detailed in Part 284.8(h)(4) of FERC’s regulations; ◦ Pre-arranged releases at the maximum pipeline tariff rate for a term greater than one year; and ◦ Releases for any period of 31 days or less, but only after verifying: • That the same transportation or storage capacity segment was not released by the Company to the same Counterparty or any affiliate thereof as a non-biddable release in the previous 28 days. If there was no prior release within the previous 28 days, you can post the capacity as non-biddable. • If you have any doubt as to whether the Counterparty under the proposed release is affiliated with a Counterparty that held the released the capacity in the prior 28 days, you must verify affiliate status. The Credit Manager or Sr Manager can verify affiliate status through a quick credit review. Do not be an unwitting party to other companies trying to “flip” capacity by using affiliates to avoid bidding requirements. If the proposed Counterparty is confirmed to be an affiliate of the prior Counterparty that was released the capacity within the preceding 28 days, NOTIFY YOUR SUPERVISOR AND VP ENERGY SERVICES IMMEDIATELY. • For capacity release, post all release or bid requirements in the Pipeline EBB. For releases under an asset management arrangement or under a state-regulated retail access program be sure to include all additional posting requirements per FERC and pipeline EBB requirements. For new contract request or contract amendment either complete the online request form or paper request form for processing. Print out all screens from pipeline EBB and attach to the Deal Approval Sheet. • Capacity releases that are done on a contract that was released to NJR as recallable must also be recallable. Any terms to NJR must be reviewed to see what must be the same (recallable business day, intraday, etc) • If you are not sure what any of the fields mean, ASK. Some pipelines allow you to release capacity so the replacement shipper can change your receipt and delivery points. Some have entitlement that can vary along the entire path. Each pipeline EBB is unique. You must be aware of the specific requirements. • Before executing a new contract make sure to review all of the terms. Date, points, volumes and any other important details must be reviewed before accepting. • When completed, enter into GMS. • New transport contracts must also have the 2nd demand screen filled in to account for the demand $$. GMS should have comments listing any relevant details. Storage contracts must list the Demand rates in either the back screen or as a Demand Rate on the front screen. • Once a deal is completed, the Deal Approval forms with all back up EBB print screens should be given to Contract Analyst. • Deal Approval forms will be reviewed at least monthly by Manager T&E NJNG or VP NJNG to ensure compliance with policy.
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Capacity Release. The following procedures apply to all capacity release transactions including releases of capacity, acquisitions of released capacity and related contracting arrangements, as follows: • Prior to posting a capacity release deal, bidding on posted capacity release or creating a new contract request, amending an existing contract or executing a new contract on a Pipeline EBB, all with respect to capacity release, the following approvals must be obtained, as appropriate: • A signed Deal Approval Sheet from the appropriate Trader must be obtained in all circumstances; • Based on the total dollar commitment and term of the deal, additional approvals may be required as specified on the Deal Approval Sheet; and • Prior to any posting, (A) with respect to NJNG, Manager T&E NJNG or VP NJNG, and (B) with respect to NJRES, Director Energy Trading, Director of Marketing must review the posting (i) for Counterparty company affiliates, and (ii) to ensure the posting satisfies -30- FERC’s rules with respect to what is non-biddable, as applicable; provided, however, Senior Counsel must be consulted in the event of any uncertainty with respect to compliance with FERC posting rules. • Only the Scheduling Manager, VP NJNG, Grade 8 schedulers or Grade 7 schedulers, with at least 1 year of experience, who have received appropriate training regarding rules and regulations of capacity release and who have been granted access by their supervisor, may post capacity releases, bid on capacity releases, request new contracts or amendments. If a Trader asks you to do something, but you are not sure you have authority, ASK YOUR SUPERVISOR OR VP ENERGY SERVICES FIRST. • Verify that the Trader has listed all pertinent data on the deal sheet (pipeline, path and/or contract, if recallable or not, rereleasable, biddable, rate, term, volume, and other relevant details). There must be a reason discussed in the box. Ask the Trader about any information that is missing before proceeding. If there are errors or changes necessary, the Trader must complete a new Deal Approval Form. • For capacity release, verify if the release has to be posted for bid. Releases are biddable in most circumstances; however, the following releases are not biddable: ◦ A pre-arranged release to an asset manager where the release contains a condition that the releasing shipper may call upon the replacement shipper to deliver to, or purchase from, the releasing shipper a volume of gas up to 100 percent of the daily contract demand of the released transportation or storage capacity at least five-twelfths of the period of the release, as more fully detailed in Part 284.8(h)(3) of FERC’s regulations; ◦ A pre-arranged release to a marketer participating in a state-regulated retail access program, as more fully detailed in Part 284.8(h)(4) of FERC’s regulations; ◦ Pre-arranged releases at the maximum pipeline tariff rate for a term greater than one year; and ◦ Releases for any period of 31 days or less, but only after verifying: • That the same transportation or storage capacity segment was not released by the Company to the same Counterparty or any affiliate thereof as a non-biddable release in the previous 28 days. If there was no prior release within the previous 28 days, you can post the capacity as non-biddable. • If you have any doubt as to whether the Counterparty under the proposed release is affiliated with a Counterparty that held the released the capacity in the prior 28 days, you must verify affiliate status. The Credit Manager or Sr Manager can verify affiliate status through a quick credit review. Do not be an unwitting party to other companies trying to “flip” capacity by using affiliates to avoid bidding requirements. If the proposed Counterparty is confirmed to be an affiliate of the prior Counterparty that was released the capacity within the preceding 28 days, NOTIFY YOUR SUPERVISOR AND VP ENERGY SERVICES IMMEDIATELY. • For capacity release, post all release or bid requirements in the Pipeline EBB. For releases under an asset management arrangement or under a state-regulated retail access program be sure to include all additional posting requirements per FERC and pipeline EBB requirements. For new contract request or contract amendment either complete the online request form or paper request form for processing. Print out all screens from pipeline EBB and attach to the Deal Approval Sheet. • Capacity releases that are done on a contract that was released to NJR as recallable must also be recallable. Any terms to NJR must be reviewed to see what must be the same (recallable business day, intraday, etc) • If you are not sure what any of the fields mean, ASK. Some pipelines allow you to release capacity so the replacement shipper can change your receipt and delivery points. Some have entitlement that can vary along the entire path. Each pipeline EBB is unique. You must be aware of the specific requirements. • Before executing a new contract make sure to review all of the terms. Date, points, volumes and any other important details must be reviewed before accepting. • When completed, enter into GMS. • New transport contracts must also have the 2nd demand screen filled in to account for the demand $$. GMS should have comments listing any relevant details. Storage contracts must list the Demand rates in either the back screen or as a Demand Rate on the front screen. • Once a deal is completed, the Deal Approval forms with all back up EBB print screens should be given to Contract Analyst. • Deal Approval forms will be reviewed at least monthly by Manager T&E NJNG or VP NJNG to ensure compliance with policy.
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