Gas Purchasing and Off-System Sales Trading Guidelines Sample Clauses

Gas Purchasing and Off-System Sales Trading Guidelines. In addition to purchasing the physical commodity and capacity necessary to meet NJNG’s retail sales commitments, NJNG’s traders purchase and sell natural gas and capacity as part of OSS and capacity release incentive programs.. The following guidelines apply to NJNG’s gas supply operations: Prior to making any off system sale or capacity release, the NJNG trader must analyze the availability of any excess deliverability in the portfolio. a. For daily and within the month transactions: the trader reviews the daily send out estimate report that is distributed by Gas Control twice a day and compares it to the daily deliverability available in the portfolio. If the transaction is greater than the number of days on the daily send out but still less than 1 month, the trader requests a balance of month forecast projection from the Manager, Supply Planning and compares each days’ estimate to the deliverability of the portfolio. b. For transactions for the prompt month or greater, but not over a peak winter month (January or February): the trader requests a projected gas usage by month from the Manager, Supply Planning which shows by month the current system requirement estimates based on 10-year averages and current long term weather forecast and compares that to the estimated portfolio deliverability, inclusive of projected planned storage injections and/or withdrawals. c. For transactions that might include a peak winter month, then in addition to the above analysis, the trader must obtain a peak day analysis that shows potential peak day requirements and the required 5% reserve volume. After the determination of any excess deliverability is made, the trader can transact within the following approval limits. Trading Approvals - Traders are authorized to make capacity and commodity trades using the following volumetric limits: Daily 50,000 II. Monthly 30,000 Seasonal 20,000 Seasonal deal term is defined as Apr-Oct (Summer) period or Nov-Mar (Winter) period. The Vice President or Senior Vice President of Energy Services, NJNG, must approve any trades that exceed a seasonal period. Capacity Release The following table summarizes the approvals required for capacity release transactions: Traders 50,000 </= Seasonal < $0.2 MM V.P. NJNG > Seasonal < $1.0 MM SVP ES < $5.0 MM CFO/ Treasurer/ VP NJRSC/ COO > $5.0 MM CEO > $ 15.0 MM Board of Directors > $20.0 MM * refers to upcoming season only Exhibit IV – Contract & Credit Policy for Wholesale Transactions provides addit...
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