Monthly cashout examples

Table 1 actual use LESS than nomination

Monthly imbalance % of excess quantities
Nomination 10,000 therms Imbalance 4,000 therms = 40%
Less Actual Use 6,000 therms Nomination 10,000 therms
Imbalance 4,000 therms  

Monthly cashout calculation

% of Excess Quantities Nomination Gas block difference Gas block therms Gas rateB Gas rate adjustmentC Cashout
0 - 3.5% 10,000 x 3.5% = 350 x PS Rate x 100% = $
>3.5 - 10% 10,000 x 6.5%A = 650 x 97% of Index x 100% = $
>10 - 15% 10,000 x 5.0% = 500 x 97% of Index x 100% = $
>15 - 20% 10,000 x 5.0% = 500 x 97% of Index x 80% = $
>20%     Balance = 2,000 x 97% of Index x 70% = $
Total         4,000         50% $ Credit

Table 2 actual use GREATER than nomination

Monthly imbalance % of excess quantities
Nomination 10,000 therms Actual Use 14,000 therms = 140%
Less Actual Use 14,000 therms Nomination 10,000 therms
Imbalance -4,000 therms  

Monthly cashout calculation

% of Excess Quantities Nomination Gas block difference Gas block therms Gas rateB Gas rate adjustmentC Cashout
>100 - 103.5% 10,000 x 3.5% = 350 x PS Rate x 100% = $
>103.5% - 110% 10,000 x 6.5%D = 650 x 103% of Index x 100% = $
>110% - 115% 10,000 x 5.0% = 500 x 103% of Index x 120% = $
>115% - 120% 10,000 x 5.0% = 500 x 103% of Index x 130% = $
>120%     Balance = 2,000 x 103% of Index x 150% = $
Total         4,000           $ Debit

  1. Example: 10%-3.5%=6.5%
  2. Index is the average delivered price of gas based on the spot market index price of gas for
     
    "ANR-Oklahoma" as published at the beginning of each month in the Gas Daily Monthly
     
    Contract Index for ANR ML-7.
  3. Rate adjustments are based on established Public Service Commission of Wisconsin tariffs.
  4. Example: 110%-103.5%=6.5%