In 1995, the Public Service Commission of Wisconsin created the "pooling
factor" to help reduce daily balancing costs for individual customers.
Before the pooling factor was created, each transportation customer was
responsible for the cost of its daily imbalances. Now, the pooling factor
allows WPS to balance gas use among many customers. Some imbalances
caused by customers who use more gas than nominated can be offset by customers
who use less gas than nominated.
All information is combined at the end of each month. As a result, lower
fees are charged to customers. WPS has used
the pooling factor since January 1995 to help transportation customers control
daily balancing costs.
Pooling Factor Example
| Customer |
Individual customer imbalances |
| Nomination (therms) |
Usage (therms) |
Customer imbalance |
Absolute value imbalance |
| A |
150 |
200 |
50 |
50 |
| B |
100 |
90 |
-10 |
10 |
| C |
500 |
650 |
150 |
150 |
| D |
450 |
420 |
-30 |
30 |
| E |
150 |
100 |
-50 |
50 |
| TOTAL |
1350 |
1460 |
110B |
290 |
| Customer |
Individual customer imbalances |
| 0-25% Tier one imbalance |
Pooling factorA |
Adjusted tier one imbalance |
>25% tier two imbalance |
Pooling factorA |
Adjusted tier two imbalance |
| A |
37.5C |
x |
0.3793 |
= |
14.22 |
12.5D |
x |
0.3793 |
= |
4.74 |
| B |
10.0 |
x |
0.3793 |
= |
3.79 |
0 |
x |
0.3793 |
= |
0 |
| C |
125 |
x |
0.3793 |
= |
47.41 |
25.0 |
x |
0.3793 |
= |
9.48 |
| D |
30.0 |
x |
0.3793 |
= |
11.38 |
0 |
x |
0.3793 |
= |
0 |
| E |
37.5 |
x |
0.3793 |
= |
14.22 |
12.5 |
x |
0.3793 |
= |
4.74 |
| TOTAL |
|
|
|
|
91.00B |
|
|
|
|
19.00B |
- Pooling Factor = Customer Imbalance / Absolute Value Imbalance. 110 / 290 = 0.3793
- Adjusted Tier One Imbalance + Adjusted Tier Two Imbalance = Customer
Imbalance. 91 + 19 = 110
- 150 x .25 = 37.5
- 50 - 37.5 = 12.5
