Subject 515-7-11 CAPACITY SUPPLY PLANS

Rule 515-7-11-.01 Definitions

As used in this Utility Rule 515-7-11, the following terms have the following definitions:

(a)	Act: The Natural Gas Competition and Deregulation Act as provided for in O.C.G.A. § 46-4-150et seq.

(b)	Ancillary Service: A service that is ancillary to the receipt or delivery of natural gas, including without limitation, storage, balancing, peaking, and customer service.

(c)

Capacity Supply Plan: The plan of the Electing Distribution Company for obtaining the interstate capacity assets necessary to make gas available on the EDC's system for firm distribution service to retail customers. Such a plan shall:

(i)	Specify the range of the requirements to be supplied by interstate capacity assets;

(ii)	Describe the array of interstate capacity assets selected by the EDC to meet such requirements;

(iii)

Describe the criteria of the EDC for entering into contracts under such array of interstate capacity assets from time to time to meet such requirements; provided however, that a capacity supply plan approved or adopted by the Commission shall not prescribe the individual contracts to be executed by the electing distribution company in order to implement such plan; and

(iv)	Specify the portion of the interstate capacity assets that must be retained and utilized by the EDC in order to manage and operate its system.

(d)	Commission: The Georgia Public Service Commission.

(e)	Commodity Sales Service: The sale of natural gas exclusive of any distribution or ancillary service.

(f)	Distribution Service: The delivery of natural gas by and through the intrastate instrumentalities and facilities of a gas company or of a marketer certificated pursuant to O.C.G.A. § 46-4-153, regardless of the party having title to the natural gas.

(g)	Electing Distribution Company: A gas company that elects to become subject to the provisions of the Act and satisfies the requirements of O.C.G.A. § 46-4-154.

(h)	Firm Customer: A customer who purchases gas from a certified marketer on a firm basis that ordinarily is not subject to interruption or curtailment.

(i)	Person: Any corporation, whether public or private; company; individual; firm; partnership; or association.

(j)	Retail Customer: A person who purchases commodity sales service or distribution service and such purchase is not for the purpose of resale.

Rule 515-7-11-.02 Commission Authority and Scope of Provisions

(a)

Consistent with Official Code of Georgia Annotated (O.C.G.A.) §§ 46-4-155(e), each Electing Distribution Company shall be required to develop and file for the Commission's review and approval Capacity Supply Plans, as described by the regulations in this Rule. These regulations establish guidelines for the development and submission of Capacity Supply Plan, including filing requirements enabling Commission oversight, review and monitoring, the establishment of hearing procedures, and provide for the periodic review of each EDC's Capacity Supply Plan. Interim monitoring is established through the reporting requirements. These regulations also provide for Capacity Supply Plan amendments.

(b)

In the event of any conflict between the provisions of this Rule and applicable provisions of the Official Code of Georgia Annotated, including O.C.G.A. § 46-4-155 as it may be amended from time to time, the applicable provisions of the O.C.G.A. shall take precedence. Any such conflict as to one provision of this rule shall not, however, void or nullify any remaining provisions of this rule.

Rule 515-7-11-.03 Hearing Procedures

(a)

The following hearing procedure shall be used for Capacity Supply Plans:

1.

Not less than ten days after any filing by an EDC of its Capacity Supply Plan for the following three years, the Commission shall conduct a public hearing on such filing. The EDC's testimony shall be under oath and shall, with any corrections thereto, constitute the EDC's affirmative case, respectively. At any such hearing, the burden of proof to show that the proposed Capacity Supply Plan is appropriate shall be upon the EDC.

2.	The provisions of law relating to parties, intervention, and discovery in proceedings before the Commission shall apply with respect to such proceedings.

3.	Following such a hearing, the Commission shall issue an order approving the Capacity Supply Plan filed by the EDC or adopting a Capacity Supply Plan for the EDC that the Commission deems appropriate.

4.

If, for any reason, the Commission does not issue an order by the 45th day after the EDC's filing which either approves the Capacity Supply Plan filed by the EDC or adopts a different Capacity Supply Plan for the EDC, the Capacity Supply Plan proposed by the EDC shall thereupon be deemed approved by operation of law.

Rule 515-7-11-.04 Minimum Filing Requirements for the Electing Distribution Company

At least every third (3rd) year following the date when the rates for commodity sales service within a delivery group or groups become no longer subject to Commission approval, the Electing Distribution Company ("EDC") shall file with the Commission a Capacity Supply Plan ("CSP") on or before August 1 of such year. As part of its CSP, the EDC shall include each of the following as minimum filing requirements:

(a)

Background:

1.	An organization chart of the EDC's current gas or capacity planning and management staffing. The requested organization chart shall provide both the positions and the names of personnel holding the positions.

2.

A detailed description of each of the EDC's liquefied natural gas ("LNG") facilities including facility's liquefaction, storage, and vaporization capacities. The information on capacities shall include the following:

i.	Data on rated, planned, and maximum operating parameters;

ii.	A full description of any reserve allowance made for planned operation.

3.	A narrative description of the EDC's methodologies for calculating the design day load.

(b)

Historical Data:

The EDC shall provide the following:

1.	The twenty-four (24)-hour average temperature (on 10 A.M. - 9:59 A.M. gas day basis) for the five (5) coldest days by pool, for each of the past nine (9) years.

2.	An illustrative breakdown of the capacity asset array based on the most recently approved CSP.

3.	An average daily weather pattern for planning purposes, using the immediate past ten (10) years of data.

4.	The top five (5) peak days for each year out of the most recently approved CSP, by year for the total system, along with the available assets and their aggregate utilization for such days.

5.	A summary comparing the ten (10)-year average monthly weather pattern to the total monthly heating degree days ("HDDs") experienced by the EDC, over the period covered by the most recently approved CSP.

6.	A summary of the peak demand day for each year of the most recently approved CSP, along with the relevant weather attributes, including HDDs, wind speed, wind direction, cloud cover, and other relevant factors contributing to the actual firm demand.

7.	Actual daily firm and interruptible throughput quantities by month and by primary pool measured in dekatherms for the period covered by the most recently approved CSP.

8.	A summary table of the no-notice, bundled peaking sales service ("BPPSS") by month for November through March, in each of the past three (3) years. (See chart below)

9.	A summary of discretionary BPPSS utilization by month for November through March, in each of the past three (3) years. (See chart below)

10.	A brief description of the EDC's activities for the period covered by the most recently approved CSP, with respect to proceedings at the Federal Energy Regulatory Commission ("FERC").

11.

A detailed description of any unplanned gas supply or capacity disruptions over the last six (6) years. Include:

i.	The dates and duration of the disruptions;

ii.	The nature and magnitude of the disruption;

iii.	The number of affected firm customers;

iv.	The amount of capacity lost; and

v.	Penalties incurred by the EDC due to capacity disruptions or loss.

12.

A schedule, provided on a confidential basis, of penalties incurred by the poolers and marketers pursuant to supply mismatch ("SMM") violations imposed during the previous six (6) years. Include:

i.	Dates marketers incurred SMM violations, associated quantities, and the incentive charges the marketers incurred for failure to meet the liquefaction supply requirements ("LSR");

ii.	Dates marketers incurred SMM violations, associated quantities, and the incentive charges the marketers incurred for failure to meet the daily supply requirements ("DSR");

iii.	Dates poolers incurred SMM violations, associated quantities, and the incentive charges poolers incurred for such SMM violations;

iv.	Dates and operational flow order ("OFO") types and sources of OFO imposed; and

v.	Month-end cash out quantities and dollars incurred by poolers.

13.

Actual data that supports the reasonableness of the EDC's forecast for each year from the most recently approved CSP by including:

i.	The daily variation between forecasted and actual throughput by primary pool group for firm customers;

ii.	The historical fitted values from the design day analysis by primary pool group for the actual firm load for the fifteen (15) coldest days;

iii.	The historical fitted values from the design day analysis by primary pool group for the actual firm load for the fifteen (15) highest load days; and

iv.	The historic days (by date and pool) that required the EDC to utilize BPPSS assets or successor services.

14.	An analysis of use per billing unit over the historical analysis period in developing the design day forecast to identify trends in consumption. Such use per billing unit analysis shall consider input from the marketers and Commission Staff.

15.	A summary of the monthly fixed costs over the period of time covered by the most recently approved CSP from the available firm gas supply resources.

16.

A summary of the interstate pipeline contracts the EDC has or any other party whose contract or purchase agreement affects the EDC's CSP, including the following details:

i.

Parties;

ii.

Terms;

iii.	Firm transportation available daily, monthly, seasonally, and annually;

iv.	Storage available by month, including maximum daily injection quality ("MDIQ"), maximum daily withdrawal quality ("MDWQ"), and maximum storage quantity ("MSQ");

v.	Applicable prices and rates;

vi.	Information regarding receipt and delivery points;

vii.	The costs prior to any actions that would increase or reduce the costs; and

viii.

Activities that would have reduced the reported costs shall be reported separately (e.g., capacity release, contract negotiations, rate case settlements).

17.	A description of the method of transportation to and from storage and whether transportation services are included in the contracts with the storage services.

18.	A detailed description of any analysis by the EDC concerning the economic consequences and potential risks associated with the extension of the term or termination for all the interstate pipeline contracts.

19.

A complete history of the EDC's capacity release and acquisition activities, as it relates to the EDC's retained interstate pipeline capacity, performed by the EDC during the period covered by the most recently approved CSP. For each instance, include:

i.

Capacity release:

a)	Pipeline, released quantity, released price, released period, and the associated revenues or costs;

b)	The lawful rates allowed by FERC regulations;

c)	Whether recall conditions were placed on the release;

d)	Whether the capacity was recalled prior to the expiration of the release period;

e)	Whether the capacity release had been prearranged at a price other than the maximum lawful price and had not been subject to bid; and

f)	Whether the capacity release had been listed on the pipeline's bulletin board;

ii.	A detailed description of any pipeline or transportation capacity that was directly offered to or sought by the EDC, including details on the terms and conditions for such offered capacity and the reasons why the EDC accepted or rejected each individual opportunity;

iii.	A summary of all individual contracts with interstate pipelines, or any other party whose contract or purchase agreement affects the EDC's CSP; and

iv.	The amount of all firm capacity under contract from pipeline by the EDC, including but not limited to storage, LNG and peaking.

20.	Information on interruptible customers who converted to firm service in aggregate by pool, including the date of conversion and the customer load characteristics.

(c)

Forecast Data:

The EDC shall provide:

1.	A description of how the forecasts were generated, including data in the analysis period which may have been excluded.

2.

A forecast of daily firm load, by pool, for the next six (6) years, using the ten (10) year average daily weather pattern developed from the provided historical data. The six (6) year firm load forecast shall be used to support the proposed CSP and must include:

i.	All supporting data and work product(s) used to develop the firm load forecast model, along with copies of the input data and calculations used to compute the firm load forecast;

ii.	A description of how the firm load forecast was generated. Data in the analysis period which may have been excluded in the EDC's development of the firm load forecast shall also be included in the submission; and

iii.

A narrative description of how the firm load forecast and the approach or data used to develop the firm load forecast is different from the most recently approved CSP, if applicable, including a discussion of the differences and examples of how the changes improve forecasting accuracy when compared to historical information.

3.

A forecast of design day firm load, by pool, for the next six (6) years. The six (6)-year design day firm load forecast shall be used to support the proposed CSP and must include:

i.	All supporting data and work product(s) used to develop the design day firm load forecast model, along with copies of the input data and calculations used to compute the design day firm load forecast;

ii.	A description of how the design day firm load forecast was generated. Data in the analysis period which may have been excluded in the EDC's development of the design day firm load forecast shall also be included in the submission;

iii.

A narrative description of how the design day firm load forecast and the approach or data used to develop the design day firm load forecast is different from the most recently approved CSP, if applicable, including a discussion of the differences and examples of how the changes improve forecasting accuracy when compared to historical information; and

iv.

Data for each primary pool. The data shall include, at a minimum:

a)	The total number of billing units by each class and rate schedule; and

b)	The total dedicated design day capacity ("DDDC") represented by each class and rate scheduled.

4.

A summary of the projected utilization of interstate capacity assets, using firm load and design day firm load forecasts, including:

i.	Sufficient information to enable the Commission to evaluate the reasonableness of the EDC's long-term interstate pipeline and storage contracts by providing the volume of gas flowed by contract by month, by year, and the corresponding load factors;

ii.	The level of projected firm load requirements in total by month, by primary pool, for a six (6)-year forecast;

iii.	A summary of the proposed utilization of all capacity including projected end of month storage levels by storage service included in the proposed plan on a contract-by-contract basis;

iv.

In a format similar to the below table, a summary of the maximum daily winter deliver ability for each of the EDC's system supply source categories. The requested data shall be consistent with the proposed CSP;

All Units in Dth per Day	YEAR 1	YEAR 2	YEAR 3
Design Day Load
5% Reserve Margin
Firm Transportation
Storage
Peaking
On-System Supply
Total Supply

v.	An illustrative breakdown of the proposed capacity asset array;

vi.	The current monthly pipeline rates for interstate assets;

vii.

Detailed description of any proposed changes for each of the interstate assets from the most recently approved CSP versus the proposed CSP including capacity resources, distribution system and the EDC's LNG facilities that have altered their level of supply, dispatching or operation characteristics; and

viii.

Estimated fixed cost charges for any proposed changes to each interstate asset per primary pool group.

5.	Provide and specify the portion of the interstate capacity assets which must be retained and utilized by the EDC in order to manage and operate its system.

Rule 515-7-11-.05 Capacity Supply Plan Amendments

(1)

Capacity Supply Plan Amendments.

(a)	After a Capacity Supply Plan has become effective under the provisions of O.C.G.A. § 46-4-155 and as a result of a proceeding before the Commission, the Commission shall retain jurisdiction for the purposes set forth in O.C.G.A. § 46-4-155(e).

(b)

Upon the application of the affected EDC, the Consumer's Utility Counsel of the Governor's Office of Consumer Affairs or upon its own initiative, the Commission may, after affording due notice and opportunity for hearing to the affected EDC and the intervenors in the proceeding, amend the Capacity Supply Plan.

Rule 515-7-11-.06 Information Filing Requirements

Ninety (90) days prior to the EDC entering into a new firm contract, or renews, cancels or materially amends an existing contract to purchase capacity, transportation or underground storage, or any other service authorized in its Capacity Supply Plan, it shall notify the Commission by an informational filing within thirty (30) days of the change to the contract's status.

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