Notice of OFO Penalty Waiver

Please take notice that Panhandle will be exercising its discretion to waive OFO penalties in relation to its Operational Flow Order Notice ID 32329 issued on December 23, 2022, and subsequently terminated in Notice ID 32396 on December 27, 2022. 

Panhandle appreciates the efforts of its customers and point operators under persistent extreme weather conditions to comply with the requirements and parameters outlined in the subject OFO.  Customers’ and point operators’ compliance with the OFO, as well as the critical levels of system storage available to and utilized by Panhandle during this event, enabled it to maintain service and the integrity of the system during the OFO period.

Unfortunately, as set out in the Commission’s recent order on Panhandle’s rate case, Panhandle was denied cost recovery on 19 Bcf of current system storage.  The resulting loss of that system storage volumes and flexibility will severely impact Panhandle’s ability going forward to manage its system during OFO periods at the same levels as before, particularly during critical weather events such as those that occurred in February 2021 and December 2022.  Consequently, full compliance with future OFOs as mandated by the Tariff will be essential and Panhandle reserves the right to fully apply and charge OFO penalties under its Tariff should there be any noncompliance.