LINK System Customer Interface. Capacity Redirect Nomination (Exchange)

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1 Capacity Redirect Nomination (Exchange) 1

2 Background The Capacity Redirect Nomination (Exchange) enhancement was initially implemented by Enbridge Inc., and later adopted as a FERC requirement, to provide flexibility for customers wishing to change nominations that were scheduled through a point of restriction in order to keep their markets whole. For a Capacity Redirect Nomination exchange, if a nomination is scheduled, and a throughput restriction occurs, the space used by the original nomination that moved through the point of restriction can be reused by a replacement nomination moving through the same point of restriction if: the original nomination is taken down and confirmed; the new nomination is made on the same contract and confirmed; the priority is the same or better; or the priority is lower but all capacity for the lower priority has not been restricted.

3 Capacity Redirect Nomination (Exchange) Rules A Capacity Redirect Nomination (Exchange) record will be created when a schedule volume going through a restriction is reduced and other nominations are increased in the same nomination batch run on the same contract. The volumes will be grouped together for each restriction that they cross in the path of the nomination. An increased nomination must have the same, or higher scheduling priority, as the highest restricted scheduling priority of the constraint that they are crossing. All decreases will be processed when they are confirmed and have an N nomination status. The associated capacity will be held for the nomination increase. Increases will not be processed until all have been confirmed or the four hour scheduled quantity exchange time limit has expired. Changes to activities in an active scheduled quantity exchange will cause the Capacity Redirect Nomination exchange to be cancelled. Customers should allow all activities in an existing Capacity Redirect Nomination exchange to be confirmed, processed and scheduled prior to changing those activities. Auto-renomination could impact a Capacity Redirect Nomination exchange because while a customer may only intend to include certain activities, auto-renomination can cause other activities to be unintentionally included in the Capacity Redirect Nomination exchange record.

4 Capacity Redirect Nomination Exchange Process Examples Restriction Ex. 1 Activities Nominated at 1:03 PM Confirmed By 1:15 PM 0 increased to 200 Confirmed By 2:45 PM 200 decreased to 0 The increase and decrease were entered in the same batch cycle hour. The increase was confirmed at 1:15 PM and the decrease at 2:45 PM. At the 3:00 PM batch validation job, the Capacity Redirect Nomination exchanges will be scheduled. Ex. 2 Activities Nominated at 12:33 PM Confirmed By 12:45 PM 500 decreased to 0 Not Confirmed By 5:00 PM 0 increased to 500 The increase and decrease were entered in the same batch cycle hour. Since the nomination decrease was confirmed first, the decrease will be scheduled at the 1:00 PM batch validation job. The capacity will be reserved for the remainder of the four hour holding period. Even though the nomination increase was not confirmed by 5:00 PM, the nomination decrease was still scheduled. Since the nomination increase was not confirmed before the four hour holding period ended, the capacity would become available to other shippers/contracts. ** All nominations are intraday and have already been scheduled through the point of restriction. Nominations were restricted through priority 4 on TETLP.

5 Capacity Redirect Nomination Exchange Examples Hourly Batch Jobs Restriction Ex. 3 Activities Nominated at 3:01 PM Confirmed By 3:15 PM 100 decreased to 0 Confirmed By 3:45 PM 0 increased to 100 The increase and decrease were entered in the same batch cycle hour. Since they were both confirmed within the 4 hour holding period, the nomination change would be scheduled in the 4:00 PM batch validation process. Ex. 4 Activities Nominated at 5:13 PM Confirmed By 5:43 PM 100 decreased to 0 Confirmed By 5:32 PM 0 increased to 150 The increase and decrease were entered in the same batch cycle hour. Because the increase (150) is in excess of the decrease (100), the incremental volumes will be scheduled or rejected based on available capacity. In this case the nominations will be processed at 6:00 PM since all confirmations were done in the same batch cycle. 100 of the Capacity Redirect Nomination exchange will be scheduled and the incremental volume (50) will be scheduled only if capacity is available. ** All nominations are intraday and have already been scheduled through the point of restriction. Nominations were restricted through priority 4 on TETLP.

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