1. Exit Capacity Release Methodology Statement
Transmission Workstream meeting – 8th January 2009

2. High Level Scope Licence Special Condition C18 requires……
An NTS exit capacity release methodology statement (“ExCR”) setting out the methodology by which National Grid will determine how it will release NTS exit capacity. The statement consists of two parts:
Part A
Applies to capacity allocations commencing in the Transitional Exit Period
This is an update of the existing ExCR
Part B
Applies to capacity allocations commencing in the Enduring Exit Period
New section

3. ExCR Part B – Enduring Exit Period
Scope will include:
Initialisation of long term exit capacity rights
Consistent with Exit Capacity Baseline Statement.
Process is only briefly covered. Refer to more detailed rules defined in UNC.
Concept of Users granted initial (as at 1st October 2012) long term capacity rights that are easy to reduce if not required.
Capacity Terminology
Explains terms defined in the Licence and terms defined in the UNC
Inconsistencies between the two sources
Other terms used in the ExCR for convenience

4. Enduring Annual NTS Exit (Flat) Capacity (1)
Main focus of the Part B of the ExCR is on Enduring Annual NTS Exit (Flat) Capacity
Allocations
Increase via application window or ad-hoc process.
Allocations may be satisfied through substitution of unsold baseline capacity at other exit points. However derogation being sought to defer introduction of exit substitution obligation.
Increases
Subject to User Commitment.
Advance notice required (before application)
Agree Licence revenue drivers, permits, local works
Ad-hoc applications may be first come – first served.
Developers apply via ARCAs
Mirror Shipper / DNO processes.

5. Enduring Annual NTS Exit (Flat) Capacity (2)
Scope will also include:
Capacity Release Lead times
Generally 1st October Y+4 where investment works are needed
National Grid permits may extend or reduce this
“Ad hoc” applicants can request shorter lead time subject to reasonable endeavours consideration.
Bi-Directional Sites
Exit and Entry signals required.

6. Annual and Daily NTS Exit (Flat) Capacity
Scope will also briefly include (detailed processes are provided in UNC) allocation of:
Annual NTS Exit (Flat) Capacity
Daily NTS Exit (Flat) Capacity
Off-peak Daily NTS Exit (Flat) Capacity

7. NTS Exit (Flexibility) Capacity
Available to DNOs via OCS process
Available to Shippers via OPNs
Incremental flexibility capacity released where required or incentivised under the Licence
May be released by acceptance of OPNs
Incremental flexibility capacity not released if this triggers investment
Exit Zones / Areas and Linepack Zones
Published in Annex

8. Timeline Key requirement in the Licence
to submit a methodology statement to the Authority for approval before 1st April 2009
Obligation to consult, allowing a minimum of 28 days.
Submission Date 30th March 2009
Consultation close out 23rd March 2009
Consultation start 23rd February 2009
Walk through of proposals 5th February