Utilities like WPS are
responsible for balancing the gas use of all customers each day. Utilities
are subject to additional pipeline charges if the amount of gas delivered
to their distribution system is out of balance with actual gas use.
These charges are designed to help minimize pipeline capacity and supply
problems when gas demand is either very high or very low.
The Public Service Commission of Wisconsin has authorized utilities to
declare natural gas constraint days to help control the amount of gas
used during high- and low-usage periods. Constraint days help utilities
maintain reliable service for all customers and avoid pipeline penalties
that would need to be charged to customers.
The Commission has authorized utilities to charge penalties to customers
with Gas Transportation Service and Interruptible System Sales Service
during declared constraint periods, if necessary. The penalties are in
place to:
- encourage transportation customers to control their gas usage within their
approved nominations
- encourage interruptible system sales customers to curtail their gas
usage when they're interrupted
All penalties collected are used to offset charges from the pipeline
or reduce the cost of gas for customers with Firm System Sales Service.
WPS does not profit from any penalties
charged on constraint days.
Forecasting gas use
At WPS we forecast the amount of pipeline
capacity and gas supply we'll need throughout the year. We contract for our projected
needs individually for the winter period (November through March) and
the summer period (April through October).
On most days, our firm system customers don't use the total
pipeline capacity we have under contract. We use this idle capacity
to provide gas service to interruptible system
sales customers and balancing services for gas transportation customers.
When contract limits are approached during periods of high or low use,
we may be subject to pipeline penalties that would need to
be charged to customers. Therefore, it's important for transportation
customers to accurately forecast their daily gas usage and nominate to
the WPS system the amount of gas they expect to
use each day.
