1. SGN Modification Proposal Amendments to UNC TPD OCS Process Long Term Allocation of Capacity for the Transitional Period

3. Aim of Modification Proposal
Improve information exchange.
Allow DNO Users to fine tune applications.
Improve efficiency of capacity allocation.
Allow DNO Users to apply for capacity on a long term basis out with the Application Window.
Allow NTS to allocate capacity where it is available
Separate TPD and OAD processes.

6. Long Term Capacity Allocation OCS Process
UNC TPD Section B6
DNO Users apply for NTS Offtake (Flat) and (Flexibility) Capacity for each NTS/LDZ Offtake for each Gas Year through to 30 September 2010 during Application Window 1 June to 31 July
National Grid NTS formally notify DNO Users of allocations by 30 September through Offtake Capacity Statement

7. Annual Capacity Allocation Process
UNC TPD Section B 6.3.2(a)(ii)
DNO Users can apply to increase NTS Offtake Capacity for that Gas Year or remaining part thereof at any other time.

8. Short Term Allocation of Capacity
UNC TPD Section J 7.3
DNO Users can book NTS Offtake (Flat) and (Flexibility) Capacity on a daily basis through submission of OPNs.

9. Offtake Arrangements Document
UNC OAD Section H 2.1 – Long Term Demand Forecast
Requires DNO Users to provide forecast offtake information over a 5 year timeframe
Requires information to be submitted for 5 scenarios not just 1 in 20 peak day demand

10. SGN Proposal Part 1 – Improvements to OCS Process
DNO User’s application shortened by 1 week (1 June to 24 July)
National Grid NTS provide initial notification by 15 September
2 week window for fine tuning
Offtake Capacity Statement issued by NTS on 30 September
General obligation requiring National Grid NTS to notify DNO Users as soon as possible after they become aware of a problem

11. SGN Proposal Part 2 – Applications out with the Application Window
Following a customer request, DNO Users able to apply for capacity out with the Application Window.
National Grid NTS able to allocate capacity for the Transitional Period up to 30 September 2010 where available.
National Grid NTS respond to requests within 15 Business Days.
Capacity treated as if allocated under the UNC TPD Section B process under an OCS.
Ensures customers are able to go firm immediately where capacity is
available, instead of having to wait until the next Application Window.
No risk to DNO Users or National Grid NTS.

12. SGN Modification Proposal
SGN believes the proposal would:
Improve efficiency of the current process.
Ensure the most economic and efficient allocation of capacity.
Ensure the most economic and efficiency operation of the pipeline system.

13. Questions?