TW LFT

I have been working with Ramona and Lorraine to make system adjustments to
TW's LFT arising from conclusions made at a Northern LFT meeting a few weeks
ago. One change that has been called for is that if a Limited Day is called
(for now let's say a total Limited Day, without notifying shippers of any
percentages), no LFT can flow at any time during that day but the LFT shipper
would have the option to flow IT to the extent space is available. If a
Limited Day were called notifying shippers that only a certain percentage
would flow, LFT shippers would be able to flow that percentage, and the rest
could be scheduled IT.

Drew latched onto this when I mentioned it to him and wanted to debate this
change with me. As currently configured, TW's system would allow LFT
shippers to put in nominations on a Limited Day, and if any LFT capacity were
in fact available that LFT would be scheduled. Similarly, if TW were to
notify shippers of a partial Limited Day (say 50%), and 60% of the capacity
in fact became available, TW's system (today) would allow LFT shippers to put
their nominations in and flow 60%, not limit them to 50%. TW's tariff
language appears suitably vague to allow this -- a Limited Day is defined as
a day on which TW may choose not to schedule service in whole or in part, and
the billing section has a provision for Limited Days on which any quantity of
gas is transported.

Our question was whether, by changing TW's LFT system as described in the
first paragraph, we wouldn't be leaving some firm transportation revenue on
the table (because the IT rate is generally lower than our firm rate). If
so, is the change necessary for some other reason? Please let me know what
you think.

SS