Platts clarifying SoCal Gas location descriptions

Platts is clarifying the written descriptions of its two SoCal Gas locations, as published in the appendix of its North American Gas Markets Methodology. In October 2008, Platts added a new pricing location, SoCal Gas, city-gate, to its daily and monthly bidweek surveys. That location, which is a ?virtual? trading location, includes deliveries to and from SoCal Gas? storage facilities. Holders of city-gate pool contracts may nominate supplies to storage accounts, and the city-gate pool is a delivery point for storage accounts. Addition of the city-gate point reflected a restructuring of SoCal Gas? system under the Firm Access Receipt Rights program.

Platts? historical description for the existing SoCal Gas location includes deliveries out of SoCal Gas? storage facilities. However, with implementation of the restructuring program, deliveries out of storage now fall under the city-gate location, and Platts has not been including deliveries out of storage in the SoCal Gas location.

To bring the location definitions into line with SoCal Gas? system operations, Platts will modify the descriptions in the next update of the appendix of Platts North American Gas Markets Methodology in December 2009. Platts will delete the reference to deliveries out of storage in the SoCal Gas description and will expand upon the description of the SoCal, city-gate price point to make explicit the inclusion of storage deals that can occur at SoCal, city-gate under the terms of the SoCal city-gate pooling contract and storage accounts.