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Alberta System Aligns Commodity and Demand

With TransCanada developing a new gas management system and implementing numerous process improvements, customers were provided with an opportunity to align the commodity and demand for invoicing and reporting purposes. With the current process, an invoice dated the 20th of a month contains demand charges from the previous month and commodity charges from the month previous to the demand month.

In order to accomplish the alignment, industry had to adopt a new calendar that establishes timelines for the reporting of data. At the July 10, 2001 Tolls, Tariff & Procedures Committee (TTP) meeting, customers agreed to implement a new industry calendar for:

  • the distribution of Alberta System month end receipt measurement
  • the reporting of Common Stream Operator (CSO) month end receipt allocations
  • the distribution of Alberta System gas balances
  • the distribution of Alberta System invoices

The new industry calendar works backward from the industry pay day and contains the following guidelines:

  1. Distributes invoices two and half work days prior to industry pay day
  2. Provides TransCanada two work days to prepare and distribute invoices after finalizing monthly gas balances
  3. Provides TransCanada two work days to prepare and distribute monthly gas balances after receiving month end receipt allocations from CSO's
  4. Continues to provide CSO's adequate time to complete and report month end receipt allocations
  5. Distributes receipt measurement on the fifth work day of each month

"Customers have requested that the commodity and demand be invoiced for the same month, but the current industry calendar and information systems did not support the alignment. The new industry calendar and systems will allow for TransCanada to invoice for a month's commodity and demand on the same invoice, making it more convenient for the customer," said Grant Gilbert, Senior Analyst with TransCanada.

The commodity and demand alignment as well as the new industry calendar are targeted for a January 2003 implementation, conditional on TransCanada having the required information systems available.

In future years, TransCanada will work with industry representatives, as it has in the past, to finalize the annual industry calendar using the guidelines from the approved resolution.

For information on the commodity and demand alignment or industry calendar, please contact Grant Gilbert at (403) 920-5395. For information on the TTP process, please contact Dave Hands at (403) 920-5838.

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