PA SATS Imbalance Resolution Rate Information

PA SATS Imbalance Resolution Rate Information

Small Aggregation Transportation Supplier Service (SATS) & Monthly Metered Natural Gas Supplier Service (MMNGS)


Statement of Rates Used For Purchases/Sales To Resolve Imbalances Applicable to Usage Under the Burner Tip Imbalance Cash Out Rates


Pursuant to National Fuel Gas Distribution Corporation’s Tariff purchases to resolve net Surplus Imbalances and/or sales to resolve net Deficiency Imbalances shall be performed at the rates identified below:

Delivery MonthGas Cost Component - Average Daily Market IndexTransportation Cost to City GateMarket Tier - Surplus (Overdelivery) Purchase RateMarket Tier - Deficiency (Underdelivery) Sales RateBTU FactorSurplus Tier 3 - Overdelivery Purchase RateSurplus Tier 2 - Overdelivery Purchase RateSurplus Tier 1 - Overdelivery Purchase RateMarket Tier - Overdelivery Purchase RateMarket Tier - Underdelivery Sales RateDeficiency Tier 1 -
Underdelivery Sales Rate
Deficiency Tier 2 -
Underdelivery Sales Rate
Deficiency Tier 3 -
Underdelivery Sales Rate
Note A
Note B


Note A: Gas Cost Component - Average Daily Market Index

The average of each day’s volume weighted average price for each day during the month at Tennessee Gas Pipeline’s Zone 4 200 Line pool, referred in the SNL Natural Gas Index as the “TGP Z 4 200L”.

Note B: Transportation Costs to the Company's City Gate

Costs include transportation commodity costs on Tennessee Gas Pipeline and National Fuel Gas Supply plus associated fuel cost equal to the retention rate times the market price of gas.

Note C: Pricing Tiers

The rate for cash out will be the Average Daily Market Index (“ADMI”), which is the average of each day’s DMI, plus transportation costs reflecting the cost of delivering gas to the Company’s city gate, during the month. The cash out pricing tiers and applicable rates are as follows:

TierTransactionImbalance PositionRate
Surplus Pricing Tier 3 PurchasePurchase> 20% long60% of ADMI
Surplus Pricing Tier 2 PurchasePurchase15% to 20% long85% of ADMI
Surplus Pricing Tier 1 PurchasePurchase5% to 15% long90% of ADMI
Market Pricing TierPurchase or Sale5% long to 5% short100% of ADMI
Deficiency Pricing Tier 1 PurchaseSale5% to 15% short110% of ADMI
Deficiency Pricing Tier 2 PurchaseSale15% to 20% short115% of ADMI
Deficiency Pricing Tier 3 PurchaseSale> 20% short140% of ADMI

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