16-3 Water

Please explain how the potential exposure to natural gas shortages, as described above, would change if Invenergy opted to obtain fixed gas supply contracts for both of its turbines rather than for only one.

RESPONSE 16-3:

 

Even with a firm supply, there could still be exposure to shortages if an event on the gas pipeline prevented delivery. Such an event occurred a few weeks ago where the Algonquin Pipeline had an outage and reduced flow on the system. On August 16, 2016, the pipeline restricted all nominations by shippers holding interruptible contracts and 18% of nominations by shippers holding firm contracts through the Oxford, CT compressor station. The pipeline also restricted out-of-path nominations, which shippers use to move gas through receipt and delivery points that are not part of their established contracts through the compressor station. It is not certain that this could have impacted CREC, but CREC would not be immune to such outages even with firm supply contracts. The expected frequency of such an event would be less with a full fixed gas supply contracts for both of its turbines rather than for only one; however, the cost for such a contract is most likely prohibitive.

 

RESPONDENT:

 

John Niland, Invenergy Thermal Development LLC

DATE:

August 25, 2016