OPERATIONAL FLOW ORDER – REPORT
On February 10, 2021, due to sustained colder weather, market demand, and system operating conditions, Horizon issued an Operational Flow Order (“OFO”) effective for Friday, February 12, 2021 at 9:00 a.m. Central Clock Time. This action was taken in accordance with Section 34.6 of the General Terms and Conditions of Horizon's FERC Gas Tariff (“GT&C”).
The OFO was issued to maintain and preserve the operational integrity of Horizon's system and was in response to the following operational factors: (1) maintain pressures for firm transportation deliveries; and (2) maintain operations to provide efficient and reliable firm service.
The OFO did not result in any curtailment of primary firm service. During the OFO, Horizon implemented daily and hourly take limitations for firm and interruptible Shippers (including Point Operators) at all delivery points on Horizon. The OFO limited Shippers and Point Operators, on a daily basis, from taking volumes in excess of confirmed transportation nominations, plus no-notice rights pursuant to third party balancing agreements at such delivery points and on an hourly basis to 120% of their firm service rights. (On February 11, 2021, the hourly firm service percentage was reduced from 130% to 120% before the OFO went into effect due to changed system conditions). Hourly rights for interruptible nominations were limited to 105% of the Shipper's interruptible nominations. Additionally, Shippers and Point Operators were required to flow more ratably during the gas day at all delivery points based on service priority and nomination cycles. The firm service percentage was reduced to 110% on Thursday, February 17, 2021 at 9:00 a.m. Central Clock Time.
These measures were taken consistent with Horizon's Tariff due to sustained colder weather and market demand. As the weather conditions moderated and the associated high gas demand declined, Horizon removed the OFO, effective at 9:00 a.m. on gas day Monday, February 22, 2021.