Imbalance advisory through April 2014

Public Service Company of Colorado, an Xcel Energy Company

March 20, 2014

IMPORTANT INFORMATION WHICH WILL IMPACT YOU THROUGH APRIL:

This is a follow-up to our March 7th imbalance Notice, to advise our shippers that end-of-season storage withdrawals coupled with upstream bottom-hole storage testing will further limit our ability to absorb both under-deliveries from our customers during colder periods, and over-deliveries during unseasonably warm periods. This limitation is expected to last through the end of April.

TO DO:

Shippers – please take greater care to balance supplies with load to reduce the likelihood of cashout penalties or triggering an under OR over-delivery OFO. Early action might also reduce the potential of incurring unexpected spikes in gas supply costs.

Under-deliveries:

  • We cannot cover under-deliveries during unseasonably cold day(s). When these are forecast,avoid the rush on supplies and take action early to schedule additional volumes to cover your flowing gas needs. Don’t count on pulling gas from an imbalance bank, as we may not have sufficient gas to cover your shortage on those days.

Over-deliveries:

  • We cannot absorb significant over-deliveries during warm periods – particularly those falling on weekends when loads are diminished. When these are forecast, reducenominations to avoid over-deliveries. Don’t provide extra payback gas during these days, as we won’t have storage injection or sufficient gas loads to absorb the over-delivery.

Weekends/Monday nominations:

  • Major weather shifts forecast during a weekend create challenges for our shippers. Remember to look forward to Monday and if a brief arctic event is scheduled, use your best efforts to increase nominations if necessary when making your nominations on Friday.

For additional tips on minimizing your balancing risks during this period, please review the March 7th“Storage Low – Managing PSCo Noms” notice, which is available under the Announcements section of our gas transportation website.

As I’ve stated before, we do understand that managing nominations and imbalances can be challenging during the spring shoulder months as storage and our daily balancingflexibility is reduced. Please contact Donna Woods (303-273-4826) or Sharon Gordon (303-273-4724) who are here to help if you have questions or concerns and need assistance.

We appreciate your attention to this matter and would like to thank you in advance for your cooperation.

Ken Buys

Manager, Gas Control