Mike and John, let's discuss?  I may have led Vernon astray?  Thanks. Lynn

 -----Original Message-----
From: 	Mercaldo, Vernon  
Sent:	Friday, July 27, 2001 11:54 AM
To:	Blair, Lynn
Subject:	FW: IDD Scheduling Question

Lynn, see Mike's comment I highlighted in red below.  I thought you said no new paths are allowed on the 8:00 AM (which is what I told Virginia Power) - who is right?

 -----Original Message-----
From: 	Bodnar, Michael  
Sent:	Friday, July 27, 2001 11:38 AM
To:	Threet, Kay
Cc:	Mercaldo, Vernon
Subject:	RE: IDD Scheduling Question



 -----Original Message-----
From: 	Threet, Kay  
Sent:	Wednesday, July 25, 2001 3:31 PM
To:	Bodnar, Michael
Cc:	Mercaldo, Vernon
Subject:	IDD Scheduling Question

Mike,

Vernon has been talking to Virginia Power about their IDD agreement, and questions arose about the 8 a.m. true up process, SBS, etc.

Vernon explained to them that they must at least have a zero nom path in place in order to be able to true up at the final 8 a.m. process.  I told him that we like to encourage shippers to at least nom as closely as possible to their actual anticipated takes, but that a nomination of zero does count as having an existing path for true up purposes.  Would our preference be a zero nom path over a circular nom?  I told him that I believe we hate to encourage either of these, but if the customer chooses to do one or the other, which is the least harmful to us?
[Bodnar, Michael]  First let me clarify...zero nominations are no longer required for 8 a.m. true-up. You are correct we don't encourage any nominations that merely serve as placeholders. Our preference is to nominate based on best estimate of requirements. 
True-up nominations should not be too significant a number, but should be more of a refinement to minimize out of balance activity. At least that should be the goal...now I know sometimes the true-up nom is quite significant, but hopefully those are exceptions rather than the rule. 
Because the 8 a.m. true-up is a very onerous, manual process that must be completed in a very limited period of time, all parties to the transaction including upstream and downstream parties, and operators must approve the change, before the true-up is scheduled. In addition the change must have approval from NNG Gas Control. New paths are allowed but this becomes a more difficult task if number of parties are needed to approve the change.

If we are in an allocation mode, but we don't allocate the timely process and SBS kicks in, what happens if we allocate subsequent processes?  Does the SBS that was scheduled in the timely process hold, or will it be cut in the next process when a storage allocation occurs?
[Bodnar, Michael]  The activity should hold during subsequent allocation....unless bumped during one of the bump cycles. There is a slight possibility that the activity will be considered incremental but that possibiltly is minimized if there are no changes to the scheduled path.  

I always trip over my own feet when these questions come up.  Can you please set me straight once again?

Thanks,

Kay