En 506.03 On-site Storage.

 

(a) Unless separately addressed in a utility’s integrated resource plan as defined in Puc 508.01(e), and approved by the commission , each utility shall determine its maximum projected design week demand based on the coldest historical consecutive 7-day period, otherwise known as the 7-day design demand, and determine the amount of firm gas supply to be furnished by natural gas pipeline deliveries and on-site storage inventory, if any, necessary to satisfy the 7-day design demand.

(b) In connection with the operation of its peak shaving facilities, each utility shall retain a minimum on-site storage inventory volume for peak-shaving between December 1 and February 14 of each year that is equivalent to the volume of on-site storage inventory deemed necessary to satisfy the 7-day design demand as determined in (a) above.

(c) Railway tank cars on the utility’s rail sites shall be considered as on-site storage.

(d) A utility may count as on-site storage 70% of the guaranteed daily delivery capability over a 5-day period from a firm bulk fuel supply point or off-site storage facility for any situation in which the utility:

(1) Owns or leases tank trucks;

(2) Has a firm fuel supply purchase contract; or

(3) Has a dedicated supply and delivery service contract.

(e) As of February 15 of each year, the above minimum on-site storage inventory volume may be reduced to 75% of the December 1 requirement above.

(f) As of March 1 of each year, the above minimum on-site storage inventory volume may be reduced to 50% of the December 1 requirement above.

(g) Each utility shall notify the department’s enforcement division each week during the period from December 1 through April 1 of its on-site storage inventory levels.

(h) The information required by (d) and (e) above shall be submitted by electronic mail or through the department’s electronic report filing system (ERF) on each Tuesday, or the next day following a state holiday.