transportation capacity management
Efficient utilization of transportation entitlements, a major asset of FGU's members, is essential to achieving the lowest overall delivered price of natural gas. FGU considers historical gas usage, current and forecast weather conditions, accumulated monthly imbalances, and member-provided anticipated changes in fuel requirements on a daily basis to forecast consumption and make appropriate nominations to minimize pipeline imbalances and non-compliance penalties on transporting pipelines.
Pipeline capacity is utilized, first, to meet the requirements of FGU's members. After such requirements are satisfied, FGU actively pursues daily, monthly, and long-term opportunities to use or relinquish any remaining excess capacity to third parties. This remaining excess capacity is remarketed through Florida Gas Transmission's capacity release program and bundling excess capacity with supply to sell as delivered gas to other markets in Florida. FGU also manages firm transportation entitlements on Gulfstream Natural Gas System for one of its members.
Total cost savings to FGU's members due to recoveries gained on sales or releases of excess transportation capacity was approximately $6.0 million for Fiscal 2009.