TSP Name: Northern Natural Gas Company TSP: 784158214 Notice ID: 072859 Notice Type: Customer Service Update Subject: PREPARING FOR THE 2023-2024 WINTER HEATING SEASON Critical: N Post Date/Time: 10/11/2023 02:00 PM Notice Status: Terminate For Gas Day(s): 10/11/2023 - 03/31/2024 Notice Effective Date/Time: 10/11/2023 02:00 PM Notice End Date/Time: 04/01/2024 08:59 AM Required Response Indicator Description: 5-No response required Notice Text: Northern is providing the following information as a reminder of the key items regarding the transition from summer to winter service. As always, please contact your customer service or marketing representative with any questions. Summary · Firm Entitlement Changes o TF5 winter season entitlement begins and other changes in daily entitlement levels, as described further below, occur November 1. · Seasonal Transportation Rate and Fuel Changes o Winter rates begin November 1. § Market Area maximum tariff reservation rate is $25.799/Dth/day (TF5 and TFX service.) § Field Area maximum tariff reservation rate is $13.476/Dth/day. o The winter Market Area fuel and unaccounted-for rate is 0.92% (Fuel is 0.95% and UAF is -0.03%) of receipt volumes · Allocations o Customers utilizing interruptible transportation services or alternate points within firm transportation services will be subject to allocation should demand at or through a constrained point or group on Northern's system be in excess of the point or group capacity. · Carlton Resolution Obligation o Customers subject to the Carlton Resolution Obligation must be prepared to source gas at Carlton per the assigned flow obligation posted to Northern's website. o The Carlton Resolution Obligation is expected to be zero for Gas Day November 1, and no notice will be emailed until the first increase. Note that this first increase could be for Gas Day November 1. · Daily/Weekend System Condition Notices o Northern Daily Highlights, which is emailed and posted on Northern's website each morning, will inform customers of critical notices and other items of interest that may affect daily business on Northern. o Generally, weekend notices that inform customers of Northern's best estimate of the Carlton Resolution Obligation or balancing requirements (SOL/SUL) anticipated during the weekend or holiday period will be posted to Northern's website on Thursday afternoons or prior to a holiday weekend. · Balancing Notices o During periods of high demand, a System Overrun Limitation (SOL) may be required to ensure system integrity. Note that calling an SOL does not limit capacity or the availability of alternate firm or interruptible service. The sole purpose of an SOL is to request customers balance their deliveries with their receipts. o During periods of low demand, a System Underrun Limitation (SUL) may be required to manage the possibility of excess receipts. Note that calling an SUL does not limit capacity or the availability of alternate firm or interruptible service. The sole purpose of an SUL is to request customers balance their receipts with their deliveries. Detailed Information · Transportation and Storage Services o Transportation Entitlement § For most customers, winter season entitlement levels are different than summer season entitlement levels. Please review your contracts and contact your marketing representative with questions. § TF Service · TF5 entitlement is effective November 1 through March 31. · TF12 base/variable billing determinants will be adjusted effective November 1. Northern plans to notify customers of the revised determinants by October 31. o Firm Storage Service § The storage withdrawal period runs from November 1 through May 31. Please review your contract terms and contact your marketing representative with questions. § Transportation of storage withdrawals · Storage withdrawals will be assessed the applicable transportation commodity and fuel charges from the storage receipt point to the delivery point except under the following conditions. o To the extent volumes are transported between a transportation point and its associated storage point, no transportation fee or fuel shall be assessed. o If redelivery from the Ogden storage point is to a Market Area point, there is no additional transportation or fuel charge. The Ogden storage point has specific rules related to firm or interruptible transportation service to/from the point, which can be reviewed in Northern's tariff on Sheet No. 141. § Storage dates throughout the heating season to remember: · Review the FDD storage contract, Appendix A, for the minimum and maximum account balance parameters under the 3-Step, 4-Step and Gas-in-Place storage options for balances on January 31 and March 1. · FDD account balances as of May 31, 2024, under the 3-Step, 4-Step and Gas-in-Place storage options, are subject to an annual rollover charge unless otherwise specified in customer's individual agreement. · FDD-EG customers must have an inventory balance of greater than or equal to 40% of the contract's cycle quantity by January 1, and maintain an inventory balance of greater than or equal to 30% of the contract's cycle quantity from February 1 through April 30. · Winter Transportation and Fuel Rates o Northern's seasonal rates transition from summer rates (April through October) to winter rates (November through March) beginning November 1. Winter rates are located on Northern's currently effective rates page. o Northern's reservation rates are set out on Tariff Sheet Nos. 50, 51, and 55. o The winter Market Area fuel and unaccounted-for rate is 0.92% (Fuel is 0.95% and UAF is -0.03%) of receipt volumes (Field Area fuel and unaccounted-for rates are unchanged from the summer.) o The Field Area transportation fuel matrix can be found on Northern's website on the Transport & Fuel Rates webpage. · Storage Fuel Percentage o Northern does not retain storage fuel during the withdrawal period. · Allocations o Customers utilizing interruptible transportation services or alternate points within firm transportation services will be subject to allocations should demand at or through a constrained point or group on the system be in excess of the point or group capacity. o The following Market Area group allocation documents can be found on Northern's website under the Allocation of Capacity Overview webpage: § Group Allocation Receipt Points Not Impacted § Zone in Allocation Groups, includes all points o Storage Nomination Guidance § Located on the At a Glance web page, the Storage Nomination Guidance is Northern's best estimate of potential storage constraints and allocations based on recent customer nominations and current market conditions. § Information is intended to provide general information only, and can change at any time, without notice. § Information provided: · Direction of Possible Constraint - Injection/Withdrawal/Evaluation Pending · Likelihood of Allocation - Likely/Unlikely/Evaluation Pending § Standard refresh at 9 a.m. CCT each day · Notice Guidelines o Various notices are posted to Northern's website and are available by email to those customers who have subscribed to email alerts. o Northern is committed to providing timely and useful notices to its customers regarding system information that may impact scheduling decisions. While Northern's tariff provides minimum notification timelines for Carlton Flow Obligation, SOL and SUL notices, Northern recognizes that the tariff timing requirements may not always provide the desired advance notice for customers to best manage their daily business. As a result, the information below summarizes Northern's best-efforts communication guidelines related to Carlton Sourcing Obligation, SOL and SUL postings. These guidelines are based on customer feedback and are reflective of normal gas trading timelines. If Northern's system experiences significant changes in forecasted temperatures or other unexpected operational conditions, Northern may need to react to such conditions by posting notifications using the shorter timelines as provided in the tariff to adequately protect system integrity. However, while Northern retains the right to follow the timelines provided in the tariff, every effort will be made to adhere to the guidelines listed below with the goal of making minimal changes throughout a weekend or holiday period. · Carlton Sourcing Obligation o Effective Gas Day November 1, those customers subject to the Carlton ResolutionObligation must be prepared to source gas at Carlton (POI 388) per the assigned flow obligation posted to Northern's website on the Carlton Resolution webpage. o Beginning October 30, 2023, at 9 a.m. CCT for Gas Day November 1, the daily Carlton sourcing obligationwill be posted to Northern's website on the Carlton Resolution and At A Glance webpages. o The Carlton Resolution Obligation is expected to be zero on Gas Day November 1 and no notice will be posted or emailed until the first increase. Note that this first increase could be for Gas Day November1. o Tariff Timeline: Northern is required to notify customers of an increase or decrease in firm receipts at Carlton no later than twenty-four (24) hours prior to the Timely nomination deadline (Tariff Sheet No. 263C; by 1 p.m. CCT two days prior to the applicable gas day.) o Best Efforts: Northern will post the Carlton Resolution Obligation information by 9 a.m. CCT two days prior to the applicable gas day. o Weekend/Holiday Best Efforts: Northern will post a summary of weekend or holiday Carlton Resolution Obligation requirements by 7a.m. CCT the last gas trading day before the weekend or holiday. o Northern will endeavor to maintain the Carlton Resolution Obligation as provided in the early guidance notification posted the last gas trading day before the weekend or holiday. However, in the event Northern has the ability to reduce the quantity of the Carlton Resolution Obligation when the actual Carlton Resolution Obligation is posted, Northern will provide such reductions to accommodate customers with the utmost flexibility, while also considering customers' receipt point scheduling priorities. · System Overrun Limitation (SOL) o Tariff Timeline: Northern is required to notify customers of an SOL no later than 3 p.m. CCT of the applicable gas day (Tariff Sheet No. 291.) o Best Efforts: Northern will post SOL information by 7 a.m. CCT the day prior to the applicable gas day. o Weekend/Holiday Best Efforts: Northern will post weekend or holiday SOL information by 7 a.m. CCT the last gas trading day prior to the weekend or holiday. o Northern will make every effort to maintain the SOL posting information to minimize customer risk regarding negative DDVCs (under-takes at delivery points.) Northern will make every effort to maintain at least the allowable SMS percentages as originally posted for the SOL day(s), but may increase the availability of SMS on an SOL day if system conditions allow. · System Underrun Limitation (SUL) o Tariff Timeline: Northern will notify customers of an SUL no later than twenty-seven (27) hours prior to the applicable gas day (Tariff Sheet No. 292; by 6 a.m. CCT the day prior to the applicable gas day.) o Weekend/Holiday Best Efforts: Northern will post weekend and holiday SUL information by 6 a.m. CCT the last gas trading day prior to the weekend or holiday. o Northern will make every effort to maintain the SUL posting information constant across a weekend or holiday to minimize customer risk regarding positive DDVCs (over-takes at delivery points.) · Information Resources o A link to Northern's Customer Activities webpage includes: § Nominations/scheduling § Capacity Release § Contracts § Flowing Gas § Invoices § Informational Postings § Customer Activities Bulletin o Accessing Northern's Informational Postings webpage will provide access to: § Critical, non-critical and planned service outage notices § SOL, SUL & Critical Day Status § Operationally Available Capacity Maps § Northern's tariff and rates § Gas Quality data § TMS Online Cycle Indicator § Temperature Forecast § Capacity Constraints by Cycle § Storage Nomination Guidance o Northern Daily Highlights are emailed to subscribers every morning by approximately 5:30 a.m. CCT. The email conveniently lists: § Critical notices § Pipeline status updates § Marketing/commercial items of interest § Accounting/billing and general business information · If you would like to subscribe to the Northern Daily Highlights, please visit the Notification and Security Administration page on Northern's website. o A link to Support webpage includes: § Agreements/forms § Allocation of capacity information § Change password § Frequently Asked Questions (FAQs) § Customer presentations § Point location list § Request email notifications using the Notification and Security Administration System § Training materials § TMS training videos o Operational Data Interchange (ODI) can also be accessed through Northern's website, which provides the most current measurement data by station that is automatically updated as Electronic Flow Measurement (EFM) data becomes available, typically every 15 minutes. Please contact your customer service representative or complete the Customer Activities Sign Up form for ODI access.