Transcript Ranking Example Sept 24

www.kindermorgan.com
Model Comparisons
NAESB Nomination Model used in PASSKEY = Pathed (threaded)
–
“Threaded” refers to linking a shipper’s specific commercial counterparties at receipt and delivery
locations to a specific pathed transport nomination line item, and to each other.
–
Ranking are inputted at receipt and delivery ends of path. Ranks are used in applying scheduling cuts (of
within same level of priority), balancing transactions caused by receipt and delivery reductions (both
during confirmations and pipeline balancing) across all of a shippers contracts at a scheduling restriction
or balancing location.
–
Once a path is determined to be cut the linked market (or supply) must be cut. There is no flexibility to
allow shippers to unthread their transactions.
NAESB Nomination Model used in DART= Pathed Non-threaded
–
Allows a shipper to separate commercial counterparty (buy/sell) transactions at specific locations from
transportation transactions between locations.
–
Gives shippers more flexibility of their business via ranks. Shippers can individually rank supplies and
markets, receipt and delivery locations, and paths between receipt and delivery locations. This model
also inherently supports cross-contract ranking for balancing transactions caused by receipt and delivery
reductions (both confirmations and pipeline balancing). Path ranks are used to apply scheduling
restrictions among all the paths within a given contract.
–
Once a path is cut, the shippers ranks dictate which market (or supply) gets cut. There is no linked supply
to market forced cuts.
2
Example of Pathed Non-threaded (DART)
This activity is pathed because a specific receipt location is tied to a specific
delivery location on each line item.
Up ID
AAAAA
Up ID
BBBBB
Up ID
CCCCC
Up ID
DDDDD
Delivery
Point B
Receipt
Point A
Delivery
Point C
Delivery
Point D
Down ID
XXXXX
Down ID
YYYYY
Down ID
ZZZZZ
Down ID
YYYYY
This activity is not threaded because commercial counterparties at the either end of the path are not specifically
linked to each other. For example: receipt reductions of upstream suppliers is fully in the control of the shipper
via separately identified ranks all the way to the ultimate downstream markets.
3
Example of Pathed Non-threaded (DART) – with Ranks
Receipt Rank (Downstream Transport
Line Item at Point A); ranking paths
across contracts for cuts coming from
suppliers to delivery paths across
contracts.
Delivery Rank (Upstream Transport Line
Item at each Point B, C, & D); ranking
paths across contracts for cuts coming
from markets to receipt paths across
contracts.
Atmos
40
2
41
BP
Energy
30
31
A:
420999
20
10
2
1
42
20
B:
420207
Mahwah
10
C:
420285
Mendon
21
11
Midwest
1
10
10
Elm Gas
D:
420101
Rivervale
Elm Gas
32
Hess
Cherry Nat
22
12
Sequent
Down
KT Path rank; ranking which path within a KT for
cuts arising from pipeline scheduling (within a
priority of service)
Upstream Rank (Buy Line Items at
Point A); ranking suppliers for cuts
coming from delivery points
Downstream Rank (Sell Line Items at each
Point B, C, & D); ranking markets for cuts
coming from receipt points
4
5
6
7
8
9
Example of Segment Scheduling
Sch = 0
Upstream (Buy) rank
Atmos
KT Path rank
40
PT A Sch = 70
Sch = 10
30
BP Energy
420999
20
Sch = 30
Midwest
Sch = 30
2
420207
Mahwah
32
1
420285
Mendon
1
420101
Rivervale
Sch = 5
Hess
Sch = 30
Cherry Nat
2
10
Elm Gas
Sch = 5
Elm Gas
22
Sch = 30
Sequent
Assumptions:
Segment Cut – All SOP
Total Nominated = 120
All Up/Dn Parties Nom = 30
Total Scheduled = 70
10