Message: D08-36410

From: Shelly-Anne Connell
To: Gordon Kaiser, Cathy Spoel, Maureen Helt, Robert Caputo
Cc:
Sent: 2008-09-29 at 10:14 AM
Received: 2008-09-29 at 10:14 AM
Subject: FW: Union T1 Contract Cases (EB-2008-0253 & EB-2008-0264)

Please see the email below.



Shelly



_____

From: BoardSec
Sent: September 26, 2008 4:31 PM
To: Shelly-Anne Connell
Subject: FW: Union T1 Contract Cases (EB-2008-0253 & EB-2008-0264)







______________________

John Pickernell

Assistant Board Secretary

Ontario Energy Board

416-440-7605

Fax: 416-440-7656

Website: www.oeb.gov.on.ca

Official Correspondence: BoardSec@oeb.gov.on.ca



Address:

P.O. Box 2319

2300 Yonge Street 27th Floor

Toronto, ON

M4P 1E4

______________________





_____

From: Chris Ripley [mailto:CRipley@spectraenergy.com]
Sent: September 26, 2008 4:08 PM
To: BoardSec; Robert Caputo
Cc: Chris Ripley; Annabelle Ancheta
Subject: RE: Union T1 Contract Cases (EB-2008-0253 & EB-2008-0264)



Please find below the responses to Board Staff’s questions regarding the storage applications for Fort Chicago (EB-2008-0253) and East Windsor Cogen (EB-2008-0254). Please note that the forecasts and contract parameters used to calculate the storage parameters are confidential and have only been sent to the Board.





Fort Chicago

The Fort Chicago cost-based storage space allocation of 156,725 GJ was calculated using the Board approved aggregate excess methodology (EB-2007-0725).



The consumption forecast and storage allocation calculation are noted below.





Forecast Cons.(100%)

10*3m3

January

2,903

February

2,933

March

2,742

April

1,998

May

1,512

June

773

July

1,272

August

808

September

1,152

October

2,022

November

2,347

December

2,911



23,372





Winter

13,835 10 3m3

Average

9669 10 3m3

Agg. Excess

4166 10 3m3

GJ’s

156,725



The Deliverability for Fort Chicago is determined by the Board approved calculation Firm Contract Demand – DCQ = Deliverability (EB-2007-0725). The calculation for Fort Chicago is:



CD = 5,424 GJ (144,180 m*3/day)

DCQ = 1701 GJ + 98 GJ = 1799 GJ



Deliverability = 5,424 – 1799 = 3,625 GJ





East Windsor Cogen (EWC)

The EWC cost-based storage space allocation of 156,725 GJ was calculated using the Board approved 15 X DCQ methodology (EB-2007-0725).



The following monthly consumption forecast (000’s GJ) was used to calculate the DCQ for EWC:



Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Total

348

260

301

250

231

211

267

244

232

198

233

206

2,981



The total annual consumption for EWC = 2,981,000 GJ.

The DCQ for EWC = 2,981,000 / 365 = 8,167 GJ / day



The storage allocation = DCQ x 15 = 8,167 GJ / day = 122,490 GJ (rounding)



The customer elected to receive 1,200 GJ of deliverability.





If you have any questions please contact me.

Chris.





Chris Ripley
Manager, Regulatory Applications
cripley@uniongas.com
Office (519) 436-5476
Cell (519) 365-0450

_____

From: Robert Caputo [mailto:Robert.Caputo@oeb.gov.on.ca]
Sent: September 25, 2008 3:36 PM
To: Chris Ripley
Subject: Union T1 Contract Cases (EB-2008-0253 & EB-2008-0264)



Hi Chris,



This is further to our conversation earlier today.



Based on the pre-filed evidence provided for the subject applications, the storage parameters are as follows:





Fort Chicago Contract

EB-2008-0253

East Windsor Cogen Contract

EB-2008-0264

Storage Space (GJ)

156,725

100,000

Deliverability (GJ per Day)

3,625

1,200



Based on our conversation, I understand that the above values were determined using the following formulas:



Storage Space = Total Winter Consumption – (151/365) x Total Annual Consumption (i.e. the aggregate excess method)



Deliverability = Contract Demand – Obligated Daily Contract Quantity



The following information/clarification is needed:



Please confirm that the above formulas were used in the calculations and that this is consistent with the Board-approved methods in the Storage Allocation decision (EB-2007-0725).



Please provide details of the calculations that resulted in the space and deliverability values shown above.



Please provide a response by Monday September 29, 2008, addressed to the Board Secretary with a copy to me.



Thanks



Robert Caputo
Project Advisor

Market Operations

Ontario Energy Board

Phone: 416-440-7632

Fax: 416-440-7656

e-Mail: robert.caputo@oeb.gov.on.ca





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