NIT to TEP Service Update
Additional Cost Recovery – Effective May 1, 2024
TransGas’ NIT to TEP Service is for receipt points that initiate at Nova Inventory Transfer (NIT) with TransGas being responsible to contract and transport natural gas through the Nova Gas Transmission Ltd. (NGTL) system in Alberta.
Customers utilizing this specific service are:
- Charged TransGas’ standard receipt transportation rates; and
- Subject to an Additional Cost Recovery (ACR) charge related to the transportation of gas to the Saskatchewan border.
The ACR charge to recover from customers utilizing the NIT to TEP Service effective May 1, 2024 has increased from last quarter as outlined below:
| Effective May 1, 2024 | |||||
|---|---|---|---|---|---|
| Service Type | Term | Demand Charge (per GJ/D per month) | Commodity Charge (per GJ) | Updated Rate 100% Load Factor Equivalent (per GJ) | Previous Rate 100%LF Equivalent (per GJ) |
| Long Term Firm | 1-2 years | $7.1094 | - | $0.2337 | $0.2401 |
| 3-4 years | $6.7539 | - | $0.2220 | $0.2281 | |
| 5+ years | $6.3984 | - | $0.2104 | $0.2161 | |
| Short Term Firm | $7.1094 | - | $0.2337 | $0.2401 | |
| Interruptible | - | $0.2571 | $0.2571 | $0.2641 | |
| High Priority Interruptible | $0.2571 | $0.2571 | $0.2641 |
These charges are based on actual historic costs, historic liquid credits and third-party contracting costs (including NGTL delivery rate changes). TransGas will continue to review and update the ACR charge on a quarterly basis to minimize any cumulative imbalance between costs and recoveries.
Information related to the current ACR charge in effect from February 1, 2024 to April 30, 2024 and historical ACR charges can also be found on the TransGas website under Additional Cost Recovery.
A summary of the total NIT to TEP cost, which includes both the ACR and the TransGas receipt toll effective May 1, 2024 and historical February 1, 2024, is outlined below:
| May 1, 2024 | |||
|---|---|---|---|
| Service Type | Additional Cost Recovery (per GJ) | TransGas Toll (per GJ) | Total (per GJ) |
| R110N (1-2 years) | $0.2337 | $0.2272 | $0.4609 |
| R1103 (3-4 years) | $0.2220 | $0.2272 | $0.4492 |
| R1105 (> 5 years) | $0.2104 | $0.2272 | $0.4376 |
| R11N (Short Term < 1 year) | $0.2337 | $0.2499 | $0.4836 |
| R190N (IT) | $0.2571 | $0.3030 | $0.5601 |
| February 1, 2024 | |||
|---|---|---|---|
| Service Type | Additional Cost Recovery (per GJ) | TransGas Toll (per GJ) | Total (per GJ) |
| R110N (1-2 years) | $0.2401 | $0.2296 | $0.4697 |
| R1103 (3-4 years) | $0.2281 | $0.2296 | $0.4577 |
| R1105 (> 5 years) | $0.2161 | $0.2296 | $0.4457 |
| R11N (Short Term < 1 year) | $0.2401 | $0.2525 | $0.4926 |
| R190N (IT) | $0.2641 | $0.3061 | $0.5702 |
Please contact a member of the TransGas Customer Services team for any questions.
Casey MacLeod
Key Account Manager
306-551-9350
Erin Rodger
Key Account Manager
306-530-5499