Important Updates

August 2010 Dry actual volumes for Dry Receipt Point operators are now available in eNominator. Operators, please enter your Allocations by Sepetmber 9, 2010 by noon e.s.t. in eNominator. Reminder: Change the Allocated Method to "Operator Provided Value" (OPV) or refer to the Dry Cashout section of your training manuals. If you have any questions, please call me at 313.235.1039. Thank you.

To: EUT Brokers and Agents:

If you do not serve End User Transportation (EUT) Customers, please disregard this notice.

Injections into load balancing storage during September, October and November are limited to no more than 1.43% of ACQ and load balancing storage shall be maintained within compliance (no more than 10% of ACQ for rate schedules ST, LT, XLT and no more than 5% of ACQ for rate schedule XXLT). MichCon will charge the customer for any month-end balance that exceeds the load balancing storage limits and refuse to receive any additional quantity of gas for an EUT account that has excess gas in load balancing storage. MichCon encourages energy managers, marketers, and brokers to review and proactively manage their EUT load balancing storage positions within compliance.

You may reference Section E15, Sheet Nos. E-24 and E-26 of MichCon’s Rate Book (http://www.dleg.state.mi.us/mpsc/gas/ratebooks/michcon/michcon5cur.pdf), contact your customer's MichCon Account Manager, or contact Sheryl Maloney at 313.235.1038 if you have questions.

In July, MichCon added new NGX locations to allow customers to clear trades through NGX. There has been some confusion as to how gas should be nominated at the NGX locations. To clear up any confusion, the following outlines how to nominate gas to and from the NGX locations. 

To take supply to the NGX delivery point for purposes of clearing, customers should nominate the supply (using their Broker contract) from the applicable receipt point or pooling point (Receipt) to the newly created NGX Delivery point (9451). The downstream party at the NGX Delivery Point should be NGX.

To move supply received in trade at NGX, customers should nominate the new NGX Receipt Point (9351) as their receipt location. The upstream party should always equate to the party who is directly receiving the gas from NGX. NGX should never be specified as the upstream party when nominating receipt gas at the NGX Receipt Point (9351). The new NGX Receipt Point (9351) will essentially be treated as any other third-party interconnect point. As such, customers with MichCon Generic receipt points, and/or customers with contracts that specify the NGX receipt point, will have the ability to transport supply off-system, inject into MichCon storage, or to supply EUT accounts.

To view a diagram depicting nomination transactions at MichCon’s newly created NGX points, please click this link NGX Customer Nomination Example.pdf. For questions concerning nominations at the new NGX points, please contact one of the following schedulers:

Sheryl Maloney 313.235.1038
Cindy Reppke 313.235.1037
Tom Victor 313.235.5447 (after hours call 313.919.3368)

Following are the average BTU factors for July 2010

9393,Cherry Valley 27 Dry Point, 1.080, 14.65, PSI DRY
9357,Chestonia 17 Dry Point, 0.986, 14.65, PSI DRY
9332,East Caledonia, 0.999, 14.65, PSI DRY
9361,Goodwell 8 Dry Point, 1.087, 14.65, PSI DRY
9399,Goodwell 8B Dry Point, 1.353, 14.65, PSI DRY
9398,Goodwell 9 Dry Point, 1.109, 14.65, PSI DRY
9360,Goodwell 26 Dry Point, 1.059, 14.65, PSI DRY
9081,Goose Creek (CE), 1.029, 14.65, PSI DRY
9106,Goose Creek (GLGT), 1.029, 14.73, PSI DRY
9365,Hayes 6 Dry Point, 0.985, 14.65, PSI DRY
9366,Hersey Clinton Dry Point, 1.025, 14.65, PSI DRY
9306,Hinton 3A Dry Point, 1.009, 14.65, PSI DRY
9367,Hinton 5 Dry Point, 1.117, 14.65, PSI DRY
9380,Isabella 11, 1.064, 14.65, PSI DRY
9387,Isabella 17, 1.066, 14.65, PSI DRY
9368,Jordan 4 Dry Point, 0.984, 14.65, PSI DRY
9343,Kalkaska (MCGC), 1.030, 14.65, PSI DRY
9341,Kalkaska - Sag Bay (MCGC), 1.016, 14.65, PSI DRY
9370,Lenox 36 Dry Point, 1.085, 14.65, PSI DRY
9372,Lincoln 29A Dry Point, 1.041, 14.65, PSI DRY
9373,Lincoln 30 Dry Point, 1.041, 14.65, PSI DRY
9374,Logan Churchill Dry Point, 0.926, 14.65, PSI DRY
9378,Mancelona 19 Dry Point, 1.020, 14.65, PSI DRY
9379,Mentor 29 Dry Point, 1.079, 14.65, PSI DRY
9348,Merit Plant (MICHCON), 1.035, 14.65, PSI DRY
9389,Milford 1 Dry Point, 1.060, 14.65, PSI DRY
9395,New Haven 4, 1.032, 14.65, PSI DRY
9381,Reno 27 Dry Point, 1.088, 14.65, PSI DRY
9382,Rose Lake 10 Dry Point, 1.079, 14.65, PSI DRY
9383,Sherman 35 Dry Point, 1.081, 14.65, PSI DRY
9384,Springfield 34 Dry Point, 1.078, 14.65, PSI DRY
9386,West Branch Dry Point, 1.056, 14.65, PSI DRY

Should you have any further questions regarding these BTU factors,
please contact me at (313) 235-1038.
Thank you, Sheryl Maloney

NOTE: THIS INFORMATION IS BEING PROVIDED AS A SERVICE TO OUR
CUSTOMERS AND IS FOR INFORMATIONAL PURPOSES ONLY. MCGC CONVERTED
TO AN MMBTU SYSTEM EFFECTIVE MAY 1, 2005.

The September 2010 MDQ reductions have been determined and updated in eNominator. The recalculated MDQs for customers will not be posted! Please contact Doug Lowney 313.235.1403 or Jerry DeRuiter 313.235.1042 to obtain the recalculated MDQs.

MichCon will only allow MDQ increases if the customer provides documation to their MichCon Account Manager that the EUT usage is greater than the recalculated September MDQs. Please note that per MichCon's tariff, monthly injections greater than 1.43% of a customer's ACQ will be subject to an Excess Storage Charge of $0.25 per MMBtu. The Excess Storage Charge of $0.25 per MMBtu is a correction to the previous notice dated 8-5-10. The tariff also provides for MichCon to retain 1.66% gas-in-kind on volumes nominated to EUT accounts (this will be in addition to any gas in a customer's storage account greater than 10% of ACQ).

If you have any questions please contact your Account Manager