DATE: October 14, 2014
TO: ALL TENNESSEE CUSTOMERS
RE: REVISED ESTIMATE OF SEPTEMBER CASH OUT DATA
The following is a Revised ESTIMATE of the Net Pipeline Imbalance positions for September cashout invoices rendered. This revision is needed due to processing errors on the original Preliminary Cashout Invoices.
For cash outs under Rate Schedule LMSPA, the Net Pipeline Imbalance position is estimated to be negative (net sale for Tennessee). Imbalances that are in the majority (negative) and within 5% are expected to be cashed out at a weighted average price estimated to be 40% of the average monthly price plus 60 % of the high price for the month. Imbalances that are in the minority (positive) and within 5% are expected to be cashed out at the average monthly price. Imbalances less than or equal to 1,000 Dth will be cashed out at the average monthly price. Imbalances that are in excess of 5% will be cashed out at either the high or low monthly price, plus the imbalance penalty charges.
For cash outs under Rate Schedule LMSMA, the Net Pipeline Imbalance position is estimated to be positive (net purchase for Tennessee). Imbalances that are in the majority (positive) and within 5% are expected to be cashed out at a weighted average price estimated to be 48% of the average monthly price plus 52 % of the low price for the month. Imbalances that are in the minority (negative) and within 5% are expected to be cashed out at the average monthly price. Imbalances less than or equal to 1,000 Dth will be cashed out at the average monthly price. Imbalances that are in excess of 5% will be cashed out at either the high or low monthly price, plus the imbalance level charges.
The average monthly price for the six receipt regions and the market area are as follow;
Region Average
Appalachia $2.9520
Louisiana Offshore $3.8640
Louisiana Onshore $3.8720
New England $2.6120
Texas Offshore $3.8520
Texas Onshore $3.8760
Market Area $3.1880
If you have any questions, please contact your Volume Analyst, Account Manager, or Account Services Representative.
Rahul Singh
Manager, Account Services