Transporting Gas

Nashville Gas customers that qualify for Rate Schedules 313 and 314 in Tennessee qualify to transport natural gas. These customers have consumption averages of more than 50 dekatherms per day. Specific eligibility guidelines are listed in rates and tariffs.

A customer may arrange, or have arranged, natural gas that is purchased and delivered to Nashville Gas' point of receipt. Nashville Gas accepts this "third party's" gas from an interstate pipeline and delivers it to the customer's meter. Marketers act on the customer's behalf to arrange the purchase of gas and the delivery of gas to Nashville Gas' receipt point.

Arranging and receiving transportation gas:

• Customer elects transportation service                                 
• Customer authorizes marketer to transport gas on their behalf                                 
• Marketer purchases a daily quantity of gas and arranges delivery on the interstate pipeline to Nashville Gas                                 
• Nashville Gas receives gas at interconnection point with the interstate pipeline                                 
• Nashville Gas re-delivers gas to the customer's meter

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Relationships
Relationships between customers and marketers vary greatly. Marketers and customers have the freedom to enter into many types of arrangements and are encouraged to carefully review agreements. Marketers arrange for the delivery and purchase of the customer's gas supplies and invoice customers directly for the commodity (gas) and other services provided.

Relationships between customers and the LDC are similar to traditional services with one exception. The LDC continues to deliver gas to the customer, install services and meters, regulate pressures, read meters, prepare bills, etc. The LDC does not arrange for the purchase of the gas or arrange for the interstate pipeline delivery of the commodity. The LDC invoices customers for the transportation service under the appropriate rate schedule.

Relationships between marketers and the LDC are based on specific rules and industry practices. For the most part, these rules can be found in Nashville Gas's tariffs. Generally, marketers deliver daily quantities of gas to Nashville Gas and Nashville Gas measures and reports consumption of these deliveries. Through Piedmont Online, marketers can monitor daily consumption for their deliveries and change nominations of these deliveries to balance quantities with their customer's usage.

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Piedmont Online
Piedmont Online is an Internet application that facilitates the transportation of natural gas. To access Piedmont Online, e-mail the manager of Federal Regulatory and Transportation Services at gasservices@piedmontng.com, or call 1-800-752-7508 to receive an application. Piedmont assigns one user ID and one password per account.

Our customers use Piedmont Online to view gas usage and bills, and obtain meter readings. Customers may access Piedmont's Electronic Bulletin Board (EBB) to receive messages.

Marketers use Piedmont Online to make nominations for gas deliveries, receive confirmations of nominations, change nominations, identify pipeline contracts, view aggregate customer pools, review bills, etc.

Piedmont Online is available to large Commercial and Industrial customers served under Rate Schedules 331, 341, 371 and 372 in Tennessee.

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