1. Supply Requirements The VADOC’s supply requirements include Greenville, Susex, and Keen Mountain Correctional Centers. 2. Natural Gas Facilities/Requirements The natural gas loads are spread across the VADOC and are served by a number of natural gas distribution companies. The selected contractors shall supply all Natural Gas requirements, for State Entities in the Columbia Gas of Virginia Territory and all Transport customers. As the VADOC establishes Transportation Agreements with other Local Distribution Companies (LDC’s) the selected contractor will then be responsible for providing to those LDC’s the VADOC Natural Gas requirements in that LDC’s territory. A. In looking at the VADOC’s natural gas requirements, there are a number of considerations that should be noted, as follows: • The ability to strategically use natural gas storage capabilities and futures buying is an important consideration in the VADOC’s objective of minimizing price risks and taking advantage of seasonal price differences. Some transportation tariffs of the relevant local distribution companies require the use of storage capabilities. • The current natural gas transportation rates in some of the municipal distribution territories are currently uneconomic making it difficult to fully take advantage of competitively priced retail natural gas. • A number of sites have both fuel oil and natural gas loads and in some cases will switch fuel-types depending on various economic and supply factors, particularly interruptions. Therefore, an important consideration is the ability to provide both INTERRUPTIBLE and FIRM (for those agencies without back-up fuel) natural gas and related management services. The accompanying database provides the rationale for whether fuel switching occurs because of economic, distribution company interruption or environmental reasons. • The ability to provide reliable and cost-effective natural gas from a diversified supply base, except when the pipeline or LDC curtails and does not deliver.
