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Assessment of Extreme Condition 7/29/24 - 7/31/24 and Extreme Condition Penalty Waiver
Recent extreme weather conditions led ANR Pipeline (ANR) to declare an Extreme Condition Situation (Extreme Condition) as defined in the General Terms and Conditions (GT&C) §6.1 of ANR's FERC Gas Tariff (Tariff) starting July 29, 2024, and lasting through July 31, 2024. The Extreme Condition was applicable in ANR's ML2, ML3, and ML7 zones. In accordance with ANR's Tariff, the Swing Percentage (as defined in ANR's Tariff GT&C §6.1) was lowered from 10% to 5% in those zones during the Extreme Condition.
As part of the Extreme Condition posting, ANR shippers were directed to ensure adequate supply was nominated and simultaneously flowing and maintain a uniform hourly flow unless contractually allowed to use an alternate hourly flow.
ANR carefully monitors and assesses shipper activities during Extreme Condition periods and is pleased to report that shipper compliance strongly contributed to our success in preserving system integrity and meeting scheduled delivery commitments during this Extreme Condition period. We are, as always, grateful for your spirit of teamwork and cooperation.
Accordingly, ANR is waiving its higher Extreme Condition Daily Scheduling Penalties and Unauthorized Overrun Service penalties pursuant to Section 6.18.13 of its Tariff. Extreme Condition penalty rates would have been "the greater of ten dollars ($10.00) or two (2) times the Spot Price Index for the Service Month" as described in ANR's Tariff under applicable rate schedules, subject to allocation rules set in place at each delivery location. This waiver is not an indication of future waivers. Each Extreme Condition will be evaluated independently.
All penalty waivers are posted at www.anrpl.com, Informational Postings, Other, Penalty Waiver Log.
To clarify, non-critical penalties will apply for the time period above as they do every day across the ANR system. Details on non-critical penalty rates can be found under applicable rate schedules in ANR's Tariff. Please refer to your preliminary invoices or reach out to your ANR Customer Service Representative or Account Coordinator with questions about your specific penalty exposure.
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