National Fuel Gas Distribution Corporation Spring 2015 Marketer/Supplier
Teleconference March 13, 2015
AGENDA
2:00 pm Welcome and Roll Call Dave Wolford
2:15 pm Operational Update Dave Wolford
2:45 pm Rates & Regulatory Update Mike Novak
o Federal Regulatory Update o NY Regulatory Update o PA Regulatory Update o Barcelona Project
3:30 pm Capacity Update Bob Michalski
3:45 pm General Discussion All
4:00 pm Closing Dave Wolford
National Fuel
National Fuel Gas Distribution Corporation
Spring 2015
Marketer/Supplier Teleconference
Operational Update
Presentation by: Dave Wolford
March 13, 2015
National Fuel Transportation CustomersTransportation Customers
STAND-ALONE CUSTOMERS
MONTHLY (MMT) –
New York 1
Pennsylvania 0
DAILY (DMT) –
New York 0
Pennsylvania 74
TOTAL 75
AGGREGATION CUSTOMERS
TOTAL NFGDC 150,460
New York (STBA) 117,659
New York (DMT) 36
Pennsylvania (MMNGS) 3,064
Pennsylvania (SATS) 29,626
TOTAL 150,385
2NFGDC Spring 2015 Marketer
Teleconference
National Fuel
80,000
100,000
120,000
140,000
Nu
mb
er o
f C
ust
om
ers
National Fuel Gas DistributionNY STBA Enrollment
ResidentialNon-ResidentialTotal
3NFGDC Spring 2015 Marketer
Teleconference
0
20,000
40,000
60,000
Dec
-98
Jun
-99
Dec
-99
Jun
-00
Dec
-00
Jun
-01
Dec
-01
Jun
-02
Dec
-02
Jun
-03
Dec
-03
Jun
-04
Dec
-04
Jun
-05
Dec
-05
Jun
-06
Dec
-06
Jun
-07
Dec
-07
Jun
-08
Dec
-08
Jun
-09
Dec
-09
Jun
-10
Dec
-10
Jun
-11
Dec
-11
Jun
-12
Dec
-12
Jun
-13
Dec
-13
Jun
-14
Dec
-14
Nu
mb
er o
f C
ust
om
ers
National Fuel
20,000
25,000
30,000
35,000
Nu
mb
er o
f C
ust
om
ers
National Fuel Gas DistributionPA SATS Enrollment
Residential
Non-Residential
Total
4NFGDC Spring 2015 Marketer
Teleconference
0
5,000
10,000
15,000
Jun
-10
Au
g-1
0
Oct
-10
Dec
-10
Feb
-11
Ap
r-11
Jun
-11
Au
g-1
1
Oct
-11
Dec
-11
Feb
-12
Ap
r-12
Jun
-12
Au
g-1
2
Oct
-12
Dec
-12
Feb
-13
Ap
r-13
Jun
-13
Au
g-1
3
Oct
-13
Dec
-13
Feb
-14
Ap
r-14
Jun
-14
Au
g-1
4
Oct
-14
Dec
-14
Feb
-15
Nu
mb
er o
f C
ust
om
ers
National Fuel
2,000
2,500
3,000
3,500
Nu
mb
er o
f C
ust
om
ers
National Fuel Gas DistributionPA MMNGS Enrollment
TotalResidentialNon-Residential
5NFGDC Spring 2015 Marketer
Teleconference
0
500
1,000
1,500
Au
g-0
6
Dec
-06
Ap
r-07
Au
g-0
7
Dec
-07
Ap
r-08
Au
g-0
8
Dec
-08
Ap
r-09
Au
g-0
9
Dec
-09
Ap
r-10
Au
g-1
0
Dec
-10
Ap
r-11
Au
g-1
1
Dec
-11
Ap
r-12
Au
g-1
2
Dec
-12
Ap
r-13
Au
g-1
3
Dec
-13
Ap
r-14
Au
g-1
4
Dec
-14
Nu
mb
er o
f C
ust
om
ers
National Fuel
87.6 85.4 87.0
80.3
91.2
99.9
80.0
100.0
120.0
NEW YORK12 Month Totals
(Through December 2014) Throughput Transported
6NFGDC Spring 2015 Marketer
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42.7 42.7 43.5 41.6 46.9
51.9
0.0
20.0
40.0
60.0
2009 2010 2011 2012 2013 2014
BC
F
National Fuel
40.3 41.1 42.1 39.5
45.2
49.9
28.3 30.0
40.0
50.0
PENNSYLVANIA12 Month Totals
(Through December 2014) Throughput Transported
7NFGDC Spring 2015 Marketer
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16.8 18.7
21.1 21.3
25.3
28.3
0.0
10.0
20.0
30.0
2009 2010 2011 2012 2013 2014
BC
F
National Fuel
127.9 126.5 129.1
119.8
136.4
149.8
100.0
120.0
140.0
160.0
NFGDC YEARLY DELIVERIES12 Month Totals
(Through December 2014) Throughput Transported
8NFGDC Spring 2015 Marketer
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59.5 61.4 64.6 62.8
72.2 80.2
0.0
20.0
40.0
60.0
80.0
2009 2010 2011 2012 2013 2014
BC
F
National Fuel
48.8% 50.0% 50.0%51.8% 51.4% 52.0%
40%
50%
60%
NYTRANSPORTATION PERCENTAGE
OF 12 MONTH DELIVERIES
9NFGDC Spring 2015 Marketer
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0%
10%
20%
30%
Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 Dec-14
National Fuel
41.7%45.4%
50.1%53.9%
56.1% 56.7%
40%
50%
60%
PATRANSPORTATION PERCENTAGE
OF 12 MONTH DELIVERIES
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0%
10%
20%
30%
Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 Dec-14
National Fuel
46.5% 48.5%50.1%
52.5% 52.9% 53.6%
40%
50%
60%
NFGDC TRANSPORTATION PERCENTAGE
OF 12 MONTH DELIVERIES
11NFGDC Spring 2015 Marketer
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0%
10%
20%
30%
Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 Dec-14
National Fuel
Marketer/Supplier Operations SupportMarketer/Supplier Operations Support
• NFGDC provides a full range of business tools and support services:
– NFGDC Website:
http://www.nationalfuelgas.com/marketers/default.aspx
– Operating Procedures Manuals:
• GTOP, TSS, TSS Reports, Aggregator, Market Pool, Production Pool
– Transportation Scheduling System – TSS– Transportation Scheduling System – TSS
– Training
– Help Desks
• Scheduling: 716-857-7232 email: [email protected]
• Billing: 716-857-7432 email: [email protected]
– After Hours Scheduling Support: 716-857-7232
– Bi-Weekly Operational Teleconferences
• http://www.nationalfuelgas.com/marketers/announce.asp
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National Fuel
New York & Pennsylvania OperationsNew York & Pennsylvania Operations
• Meet daily delivery requirements (DDQs) to serve
market
• Manage storage inventories
– Required end of month storage inventory percentages
are minimums, not targetsare minimums, not targets
• Deliver upstream supplies at primary firm or acceptable
alternate delivery points
• Customer usage and local production estimates need to
be as accurate as possible
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National Fuel
New York & Pennsylvania OperationsNew York & Pennsylvania Operations
• Daily Delivery Quantities (DDQs)
– DDQs are customer usage estimates based on usage history,
weather forecasts, actual measurement
• Production Daily Quantities (PDQs)
– PDQs are estimates of local production based on production – PDQs are estimates of local production based on production
volume history
• Market Pool and Production Pool operators are
responsible for monitoring actual flowing volumes
and adjusting DDQs and PDQs via TSS
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National Fuel
SYSTEM MAINTENANCE ORDERSSYSTEM MAINTENANCE ORDERS
* TO MAINTAIN SYSTEM OPERATIONAL INTEGRITY *
• SYSTEM ALERT
• OFO
• UNAUTHORIZED OVERRUN
• CURTAILMENT
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National Fuel Operational Update
Winter 2014 – 2015(Gas days inclusive)
• System Alerts – 5 Cold Weather
• January 7-20• January 25-February 2• February 5• February 12-March 1• March 5
– 8 DDQ Averaging• December 24-29
8 DDQ Averaging• December 24-29• January 10-12 • January 17-20• January 24-26• January 30-February 2• February 14-17• February 21-23 • February 27- March 2
• OFOs– 1 Cold Weather
• February 14-27
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National Fuel Winter 2014-2015
40
50
60
70
80
National Fuel Degree Days (HDD)
Buffalo NY - 2014-2015
Actual HDD as of 3-8-15
13.4% CTN
Forecasted HDD as of 3-23-15
12.5% CTN
Peak Throughput 2/23/15
Peak Degree Days 2/15/15
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10
20
30
Nov Dec Jan Feb MarActual HDDs (by Day) Normal HDDs (by Day) Forecasted HDDs Mar 9 - Mar 23
Actual HDD for the month of
November 2014 11.1% CTN
December 2014 10.5% WTN
January 2015 10.4% CTN
February 2015 39.1% CTN
National Fuel Winter 2014-2015
3,000
4,000
5,000
6,000
National Fuel Degree Days (HDD)
Cumulative Buffalo NY - 2014-201512.5% Colder through 3/23/15
12.8% Colder through 3/23/14
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1,000
2,000
Nov Dec Jan Feb Mar
Actual HDDs (by Day) Winter 2014-15 Normal HDDs (by Day) Actual HDDs (by Day) Winter 2013-14
Cumulative HDD for the month of
November 2014 11.1% CTN
December 2014 1.8% WTN
January 2015 3.1% CTN
February 2015 12.6% CTN
National Fuel Winter 2014-2015
40
50
60
70
80
National Fuel Degree Days (HDD)
Erie PA - 2014-2015
Actual HDD as of 3-8-15
15.4% CTN
Forecasted HDD as of 3-23-15
14.2% CTN
Peak Throughput 2/19/15
Peak Degree days 2/16/15
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0
10
20
30
Nov Dec Jan Feb Mar
Actual HDDs (by Day) Normal HDDs (by Day) Forecasted HDDs Mar 9 - Mar 23
Actual HDD for the month of
November 2014 17.5% CTN
December 2014 11.8% WTN
January 2015 13.1% CTN
February 2015 40.8% CTN
National Fuel Winter 2014-2015
3,000
4,000
5,000
6,000
National Fuel Degree Days (HDD)
Cumulative Erie PA - 2014-201514.2 % Colder through 3/23/15
14.6 % Colder through 3/23/14
20NFGDC Spring 2015 Marketer
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0
1,000
2,000
Nov Dec Jan Feb Mar
Actual HDDs (by Day) Winter 2014-15 Normal HDDs (by Day) Actual HDDs (by Day) Winter 2013-14Actual HDDs (by Day) Winter 2012-13 Actual HDDs (by Day) Winter 2011-12
Cumulative HDD for the month of
November 2014 11.1% CTN
December 2014 0.3% WTN
January 2015 5.2% CTN
February 2015 14.7% CTN
National Fuel
Winter 2014Winter 2014--2015 Operations Summary2015 Operations Summary
• November – January, No Issues.
• February
Delivery Reliability:
• NY transportation allocated deliveries of 7.79 Bcf (4.13 Bcf during OFO).
• DDQ deficiencies totaled 367 Mcf.
• PA transportation allocated deliveries of 3.63 Bcf (1.90 Bcf during OFO).
• DDQ deficiencies totaled 195 Mcf.
Released Storage Capacity Management:
• NY STBA ESS of 2.84 MMDth.
• EOM inventory shortfalls totaled 25,283 Dth.
• PA SATS ESS of 0.91 MMDth.
• EOM inventory shortfalls totaled 0 Dth.
• March – No issues at this point.
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National Fuel
Questions?Questions?
22NFGDC Spring 2015 Marketer
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National Fuel
National Fuel Gas Distribution Corporation
Spring 2015
Marketer/Supplier Teleconference
Rates & Regulatory Update
Presentation by: Michael Novak
March 13, 2015
National Fuel Rates & Regulatory Update
Federal Update
Pipeline Rate Events
• Tennessee Gas Pipeline must file a rate case by 5/1/2015.
– Preliminary Settlement discussions with interested customers and state commissions have taken place.Preliminary Settlement discussions with interested customers and state commissions have taken place.
– Tennessee petitioned for and received an Order permitting it to defer the filing date until 7/1/2015
• If TGP files on July 1, new rates would go into effect (likely subject to refund) on 11/1/2015.
NFGDC Spring 2015 Marketer
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National Fuel Rates & Regulatory Update
Federal Update
RM14-2 - Coordination between Natural Gas and Electricity Markets
• FERC proposed a 4 AM CT start to the gas day, a 1PM Timely Nomination Deadline and two additional overlapping intraday nomination cycles.nomination cycles.– FERC also is requiring organized electric markets to either move their
day-ahead commitment schedule to be prior to Timely Nomination Deadline or explain why they should not have to do so.
• NAESB has proposed a 1PM Timely Nomination Deadline, one additional non-overlapping intraday nomination cycle but was silent on the start of gas day. Within NAESB:
– the electric interests generally support FERC’s proposed 4AM gas day.
– the gas interests generally support retaining the 9AM gas day.
NFGDC Spring 2015 Marketer
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National Fuel Rates & Regulatory Update
Federal Update
RM14-2 - Coordination between Natural Gas and Electricity Markets
NFGDC Spring 2015 Marketer
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National Fuel Rates & Regulatory Update
Federal Update
RM14-2 - Coordination between Natural Gas and Electricity Markets
• 11/28/2014 - Comments were filed with FERC
• 1/22/2015 - ISO/RTO data responses regarding natural gas-fired generators running out of their daily nomination of natural gas transportation service during gas-fired generators running out of their daily nomination of natural gas transportation service during the morning electric ramp.
• Next Steps at FERC– Order by early spring 2015?
– Implementation spring 2016?
NFGDC Spring 2015 Marketer
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National Fuel Rates & Regulatory Update
New York Update
New York GTOP
– GTOP Version 2.50 was filed on 2/12/2015
• Accelerated Switching/UBP updates.
• Other routine updates & clarifications.
– GTOP Version 2.50 Errata was filed on 3/4/2015– GTOP Version 2.50 Errata was filed on 3/4/2015
• Minor MUTC capacity adjustments.
– Next GTOP filing tentatively scheduled for June 2015
• Primarily related to new billing system.
No Distribution-initiated tariff changes affecting STBA service are anticipated, however….
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National FuelRates & Regulatory Update
New York Update
Case 12-M-0476 - Proceeding on Motion of the Commission to
Assess Certain Aspects of the Residential and Small Non-
Residential Retail Energy Markets in New York State
(“NY Retail Energy Markets Case”)
– Order issued on 2/25/2014• UBP Changes regarding Door-to-Door Marketing.• UBP Changes regarding Door-to-Door Marketing.
• Changes regarding ESCO service to Low Income Customers.– To sell energy commodity to Assistance Program Participants, the ESCO must guarantee such customers
savings in comparison with what the customer would have paid the utility, or must include energy-
related value-added services that may reduce a customer’s overall energy bill.
• Technical Conference to address implementation of new requirements from Order.
• Collaborative to address changes in Electronic Data Interchange(“EDI”) Standards
related to new requirements from Order.
• Collaborative on ESCO Specific POR Discount Rates.
– On 4/25/2014, the PSC issued Order Granting Requests For Rehearing
And Issuing A Stay• Low-income/HEAP related provisions of the 2/25/2014 Order were stayed.
7NFGDC Spring 2015 Marketer
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National FuelRates & Regulatory Update
New York Update
Case 12-M-0476 – NY Retail Energy Markets Case
• On 2/6/2015, the PSC issued Order Granting and Denying
Petitions For Rehearing In Part– Stay lifted on Low-income/HEAP related provisions of the 2/25/2014
Order subject to various modifications.
– Directed development of an EDI transaction to be used by ESCOs to – Directed development of an EDI transaction to be used by ESCOs to
send utilities bill credits for Assistance Program Participants (APP).
– Established a Staff-led collaborative to • Define the energy-related value-added products and services that must be
provided to Assistance Program Participants (APP);
• Consider available technologies and mechanisms for implementing point-of-
sale confirmation of APP customers;
• Consider how best to protect existing APP customers;
• Submit a report of its proposals for Commission consideration within 180 days
of the date of the Order (approximately 8/5/2015).
8NFGDC Spring 2015 Marketer
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National Fuel Rates & Regulatory Update
New York UpdateCase 12-M-0476 – NY Retail Energy Markets Case
Changes to EDI Standards
• On 3/2/2015, the PSC issued an Order approving EDI modifications developed from the 2/25/2014 Order.
– Utility system updates are to be completed by 9/3/2015.• While not explicitly stated in the Order, ESCOs will have to update their systems over the same
timeframe to be compatible with the changes in utility systems.
– Testing to take place during the subsequent two months for implementation on – Testing to take place during the subsequent two months for implementation on 11/2/2015.
• Utilities may start testing earlier if system upgrades are completed.
• New expedited testing procedures will be in effect to minimize testing.
• NFGDC implementation factors.– Changes limited to pre-enrollment provision of Customer SIC Codes, Shopping Status,
Tax Exempt Status, non-portable discounts pre-enrollment, new codes indicating whether the customer has an enrollment block, historical usage block or both.
– Depending upon implementation of new billing system, the effective implementation date for these EDI changes may be delayed.
NFGDC Spring 2015 Marketer
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National Fuel Rates & Regulatory Update
New York Update
Case 12-M-0476 – NY Retail Energy Markets Case
Staff’s Accelerated Switching Proposal
– Staff’s proposal, issued on 7/28/2014, envisioned that a
customer would be switched to its newly chosen ESCO
within five business days of the date the customer agreed within five business days of the date the customer agreed
to the switch.
• Switches would occur at any point in a billing cycle.
• The utility would have two business days to process the switch
because the ESCO needs to hold the enrollment during the three
day cancellation period.
• A customer could have multiple ESCOs per month.
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National Fuel Rates & Regulatory Update
New York Update
Case 12-M-0476 – NY Retail Energy Markets CaseStaff’s Accelerated Switching Proposal
• Order issued on 12/15/2014.– For both gas and electric switches, the customer’s three day cancellation
period will run concurrently with the ESCO and utility switching processes.
– For electric switches, the switch would occur on the next scheduled meter read date so long as the enrollment request is received by the distribution read date so long as the enrollment request is received by the distribution utility at least five business days before the scheduled meter read date.
• NFGDC implemented changes on 2/13/2015.– Gas switches need to be received 15 calendar days before the next cycle date
(no change).
– Cancellations of pending enrollments (by the pending ESCO, by the customer or via Incumbent ESCO Contest Period Reinstatement Requests) may now be processed up until the business day before the switch is scheduled to occur.
– Discussions will continue related to off-cycle switching (gas and electric) and accelerated switching for gas.
NFGDC Spring 2015 Marketer
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National Fuel Rates & Regulatory Update
New York Update
Case No. 14-M-0224 – Community Choice Aggregation (CCA) Programs
• On 12/15/2014, the PSC issued Order Instituting Proceeding and Soliciting Comments (due 2/17/2015).
– Staff prepared a White Paper describing the CCA model and raising a number of issues to be addressed if CCAs are to be implemented in New York.
– As proposed, local governments would form CCAs to procure energy supply – As proposed, local governments would form CCAs to procure energy supply services on behalf of customers within their boundaries.
– Customers would be enrolled with the CCAs by default unless they chose to opt out of the CCA to retain their current energy provider.
• At issue is whether current ESCO customers and/or non-residential customers should be carved out of the opt-out rules, i.e. whether they should participate in CCAs only on an opt-in basis.
– Utilities would provide aggregated customer data/information during the organizational phase of the CCAs and on a detailed basis when the enrollment phase commences.
NFGDC Spring 2015 Marketer
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National Fuel Rates & Regulatory Update
Pennsylvania Update
Pennsylvania GTOP
– June 2015 GTOP update is tentatively planned• Primarily to address changes due to new billing system.
• Other changes are anticipated to be limited to routine updates.
– End of July 2015 GTOP update – End of July 2015 GTOP update • Standard 1307(f) related changes
No Distribution-initiated tariff changes affecting SATS or MMNGS services are anticipated, however…
NFGDC Spring 2015 Marketer
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National Fuel Rates & Regulatory Update
Pennsylvania Update
Investigation of Pennsylvania’s
Retail Natural Gas Supply Market
I-2013-2381742 (“RMI”)
• By Order entered 9/12/2013, the Commission initiated an investigation of
the market because it believes there are more opportunities for customers
to benefit from robust competition in the retail natural gas market.to benefit from robust competition in the retail natural gas market.
• In an Order issued 12/18/2014, the Office of Competitive Market
Oversight (OCMO) was directed to examine various issues with the goal of
improving the retail gas market and stimulating customer participation.
– The RMI Order narrowed the focus and established broad timelines.
– OCMO will not be required to achieve consensus on those recommendations
before forwarding recommendations to the PUC.
– Informal comments regarding supplier-related elements that would be appropriate
for inclusion on the utility-consolidated bills were submitted on 2/28/2015.
NFGDC Spring 2015 Marketer
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National Fuel Rates & Regulatory Update
Pennsylvania Update
RMI
Capacity Assignment/
Use of Storage
System Balancing,
Tolerances and Penalties
Access to Local
Production
Seamless Moves &
Instant Connects
Accelerated Switching Creditworthiness
Requirements
Standard Offer Program Account Number Lookup Low Income Shopping
Potential Next Step: OCMO could set up Working Groups although it may take action based upon the prior record.
NFGDC Spring 2015 Marketer
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Standard Offer Program Account Number Lookup
Mechanisms
Low Income Shopping
Customer Education Migration Riders Purchase of Receivables
Programs
Disclosure Statements Electronic Data Protocols Joint NGDC – NGS Bill
National Fuel Rates & Regulatory Update
Pennsylvania Update
2015 Annual 1307(f) filing
• Status Update– Data, Exhibits and Testimony filed January 2015.– Settlement Discussions likely to begin soon.– No major non-gas cost tariff initiatives are being bundled with 1307F filing.
• Filing Highlights – proposed rate* changes:– MMT from $0.2500 to $0.2900– MMT from $0.2500 to $0.2900– SATC from $0.2003 to $0.2799– PSB from $1.3499 to $1.2016– SB from $0.6378 to $0.5690– RTC from $11.8267 to $10.1388 (weighted avg. demand cost of upstream capacity)
– DTR [Nov. $0.17 to $0.13, Dec $0.33 to $0.31, Jan $0.24 to $0.20 & Feb $0.04 to $0.00]
• Implementation to be effective August 1, 2015.
* Relative to November 2015 Rates
NFGDC Spring 2015 Marketer
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National Fuel
17NFGDC Spring 2015 Marketer
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National Fuel
National Fuel’s New Utility Billing System
– Even though the changes will be largely invisible to customers, the new SAP customer information system touches nearly every aspect of National Fuel’s customer data management.
ESCO/Supplier – Change Impacts
(Implementation Scheduled for July 2015)
customer data management.
– The slides within this presentation address the Company’s interaction with ESCOs and NGSs, focusing upon changes to current business processes.
• Some changes will impact the manner in which ESCOs and NGSs provide service to their customers.
• In most cases, the system design maintains continuity before and after SAP implementation.
18NFGDC Spring 2015 Marketer
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National Fuel
Budget Billing Plan Consolidation
• For UCB enrolled accounts, NFG will no longer require separate supply and delivery budget billing plans.– Budget Plans will be consolidated in to one plan.
– Budget Plans will no longer need to be “settled” whenever a customer
ESCO/Supplier – Change Impacts
(Implementation Scheduled for July 2015)
– Budget Plans will no longer need to be “settled” whenever a customer switches ESCOs.
• For POR enrolled customers, NFG will purchase the receivable based on the “billed amount”. – NFG will no longer purchase the ESCO/supply budget plan amount.
– The POR section of the Billing Service Agreement (“BSA”) is under review.
• Changes, if any, will be filed in the June GTOP filings.
• ESCOs/NGSs may be required to execute new BSAs.
19NFGDC Spring 2015 Marketer
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National Fuel
Budget Billing Plan Consolidation
• ESCOs will no longer be able to send Budget Plan Amounts and Review indicators on EDI Enrollment and Change transactions.
– ESCOs will be able to add customers to Budget Billing.
– ESCOs will no longer be able to remove customers from Budget Billing.
ESCO/Supplier – Change Impacts
(Implementation Scheduled for July 2015)
– ESCOs will no longer be able to remove customers from Budget Billing.• Customers must contact the Company to leave Budget Billing.
• All ESCO Budget Plans will be settled (projected in June 2015) to prepare for consolidation.
– After the credit/debit balance is sent to the ESCO, any balance still owed by the customer will be transferred into the customer’s consolidated plan.
20NFGDC Spring 2015 Marketer
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National Fuel
Utility Combined Billing – Sales Tax Rate Changes
• ESCOs will provide sales tax rates via EDI to be applied to the ESCO’s portion of the customer’s bill under the Utility Consolidated Billing (UCB) Model.– The sales tax rates for each customer in the new system will be
populated with rates from the current system.
ESCO/Supplier – Change Impacts
(Implementation Scheduled for July 2015)
populated with rates from the current system.
– Rather than requiring exemption percentages via EDI, the new system will require the net rate (residential or commercial) to be applied to the ESCO charges.
• GTOP sales tax forms will be retired.
– Enrollment transactions for UCB customers without sales tax rate information will be rejected after SAP cutover.
– For NY, DTF web site provides sales tax rates by street address
(excluding school tax): http://www8.tax.ny.gov/JRLA/jrlaStart
21NFGDC Spring 2015 Marketer
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National Fuel
Marketer Consolidated (MCB)/Single Retailer Billing
• In New York, MCB is currently billed on the Calendar Month Estimates (CMEs) of customers enrolled in this billing model.
• In SAP, ESCOs will be billed on the cycle readings for
ESCO/Supplier – Change Impacts
(Implementation Scheduled for July 2015)
• In SAP, ESCOs will be billed on the cycle readings for customers enrolled in this billing model.– Customer billing data will be provided to ESCOs based on the
customer’s cycle readings. • CME billing detail will be discontinued.
– ESCOs will receive the customer’s cycle billing charges on the end of month summary invoices.
22NFGDC Spring 2015 Marketer
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National Fuel
NY ESCO Contest Period Reinstatement Requests
• Will be automated using EDI Drop Transactions– Similar to ConEd’s implementation, the Incumbent ESCO will use the
“CHA” code to challenge a customer’s pending enrollment with another ESCO or return to utility sales service (subject to NY UBP rules).
– GTOP form will be retired.
ESCO/Supplier – Change Impacts
(Implementation Scheduled for July 2015)
– GTOP form will be retired.
• Related EDI Drop Changes:– ESCOs will have to stop using the “CHA” code for routine drops; use
“B38” code instead.
• ESCOs can use this code now – there’s no need to wait until the new system is implemented.
– Post implementation, a “CHA” code in absence of a pending enrollment will not drop the customer.
23NFGDC Spring 2015 Marketer
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PA Last-In Enrollment Requests
• SAP will have separate enrollment processing logic for each state so it will no longer be necessary to process last-in enrollments manually.– GTOP form will be retired.
– EDI transactions (Accept/Reject responses) will be created by SAP
ESCO/Supplier – Change Impacts
(Implementation Scheduled for July 2015)
– EDI transactions (Accept/Reject responses) will be created by SAP instead of being initiated manually.
• If two or more enrollments are received on the same day…– SAP “stacking rules” will accept whichever enrollment is received
latest.
– NGSs should not use NY “CHA” code for Drops; “B38” should be used instead.
• The PA method for the current NGS to cancel a pending enrollment to another NGS is to submit another enrollment.
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Seamless Moves/Instant Connects (New Delivery Service)
• Customer requests to keep the same ESCO/NGS when they move or initiate
new delivery service are rare but are currently handled through an intensive
manual process.
• After SAP cutover:
– At order entry, SAP will generate a new account number.
ESCO/Supplier – Change Impacts
(Implementation Scheduled for July 2015)
– At order entry, SAP will generate a new account number.� In the current system, the new account number is not created until the new account begins service.
– Using the new account number, customers may keep their current
ESCO/NGS when they move through a two step process.
1. The Customer provides the new account number to the ESCO/NGS.
2. The ESCO/NGS submits an enrollment request.
– Using the same process, a customers may arrange supply service from an
active ESCO/NGS when a new delivery service is initiated.
25NFGDC Spring 2015 Marketer
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Website and Web file/Report Changes
• NFG is working to keep most file and report formats unchanged, but there are some changes that will be made.– Account number will no longer have a separate 2
ESCO/Supplier – Change Impacts
(Implementation Scheduled for July 2015)
– Account number will no longer have a separate 2 character check digit. Account number will be 9 numeric characters.
– Some field lengths may increase/decrease on web files and reports to accommodate new naming conventions for billing components.
– 12-M-0476 Tax Exempt Status requirement will be implemented at SAP cutover via web file.
26NFGDC Spring 2015 Marketer
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New Utility Billing System Notices/Information web pagehttp://nationalfuelgas.com/marketers/SAPannounce.asp
ESCO/Supplier – Change Impacts
(Implementation Scheduled for July 2015)
• This web page will be the primary means to communicate information to ESCOs/NGSs concerning the new billing system.
• General information concerning EDI will be provided, however, detailed EDI information will be provided on the EDI Web page: http://nationalfuelgas.com/marketers/EDI/aboutnfgdedi.asp
27NFGDC Spring 2015 Marketer
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EDI Testing
• NFG is working to minimize changes to its EDI
implementation and plans to utilize the expedited testing
procedures contained in the NY EDI Standards.
– After internal testing is completed, testing with EDI Service
ESCO/Supplier – Change Impacts
(Implementation Scheduled for July 2015)
– After internal testing is completed, testing with EDI Service
Providers (“ESPs”) and ESCOs that provide their own EDI
functionality will be scheduled.
• NY EDI Standards no longer require individual testing with each ESCO.
– ESPs will be expected to test changes with their ESCO/NGS clients.
• This approach will eliminate duplicative/redundant testing because a
successful test with one of an ESP’s ESCOs/NGSs means that NFG can
exchange EDI transactions with the ESP for any of its clients.
– If an ESCO/NGS wishes to test, it should work through its ESP.
28NFGDC Spring 2015 Marketer
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EDI Testing
• NFG EDI updates at: http://nationalfuelgas.com/marketers/EDI/aboutnfgdedi.asp
– EDI Testing Dates “to be determined”.
ESCO/Supplier – Change Impacts
(Implementation Scheduled for July 2015)
• Testing for the 12-M-0476 EDI transactions/data
requirements will take after SAP implementation.
– Some data requirements may be implemented in web files prior to
EDI implementation.
– 12-M-0476 testing should be less complex than testing for the new
billing system.
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SUMMARY
• There may be additional changes affecting
ESCO/NGS transactions.
ESCO/Supplier – Change Impacts
(Implementation Scheduled for July 2015)
• NFG will continue to communicate these
changes as we become aware of them.
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Questions?Questions?
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National Fuel
National Fuel Gas Distribution Corporation
Spring 2015
Marketer/Supplier Teleconference
Capacity Update
Presentation by: Bob Michalski
March 13, 2015
National Fuel
Discussion Topics
• NY STBA - Mandatory Upstream Transmission
Capacity (MUTC)
• PA SATS - Released Transmission Capacity
(RTC)(RTC)
• System Balancing Operations
• Released ESS Capacity inventory requirements
• DDQs & Scheduling for Holiday/Split Weekend
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NY STBA Capacity
• Serves Requirements for up to 62 DD:
• Intermediate Capacity (NFGS ESS) provides 33%
• Upstream Capacity (MUTC) provides 67%• Upstream Capacity (MUTC) provides 67%
• MUTC released at weighted average cost of capacity
(WACOC) rate:
– ESS – 15% of MUTC, released at its maximum rate
– TGP – 85% of MUTC, released at rate that blended with the
ESS component achieves the WACOC rate:
» Zone 4 Rose Lake – up to 34,000 Dth/day available
» Zone 5 Nashville – additional capacity, as required
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National Fuel
NY STBA Capacity
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NY MUTC TGP Released Capacity
TGP FT-A Z4 and Z5 Delivery Contracts – Effective Apr 2015 - 85% of MUTC
Date Z1-4 Z0-4 Z4-4 Total Z4 Z1-5
Apr 2012 100%Apr 2012 100%
Apr 2013 38% 33% 29% 100%
Apr 2014 20% 17% 63% 100%
Apr 2015 19% 17% 59% 95% 5%
* Projected Release Rate/Dth; reflects March 2015 release quantities
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NY MUTC WACC & Release Rates
MUTC Capacity Mix: ESS – 15%, TGP FT-A Z4 and Z5 – 85%
Date WACOC ESS – Max Rate TGP Release Rate/Dth Change
Apr 2012 $10.8359 $4.1649 $11.9219Apr 2012 $10.8359 $4.1649 $11.9219
Apr 2013 $10.5102 $4.4947 $11.4895 (4%)
Apr 2014 $9.8099 $4.4817 $10.6773 (10%)
Apr 2015 $9.4158 $4.4817 $10.2865* (14%)
* Projected Release Rate/Dth; reflects March 2015 release quantities
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National Fuel
PA SATS Capacity
• Serves Requirements for up to 62 DD
• Capacity mix proposed for August 2015:
• Upstream Pipeline Capacity 41%• Upstream Pipeline Capacity 41%
• NFGSC ESS Intermediate Capacity 59%
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National Fuel
PA SATS Capacity
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National Fuel
PA SATS TGP Release Rate
TGP FT-A Z4 Delivery Contract – Effective Aug 2015 - 41% of RTC
Date Z1 – Z4 Z0 – Z4 TGP Release Rate/Dth* Change
Aug 2012 100% $14.9823
Aug 2013 100% $13.8762 (7%)
Aug 2014 100% $11.7962 (21%)
Aug 2015 100% $10.1388** (32%)
* PA TGP Release Rate = PA WACOC Rate.
** Projected Rate/Dth
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System Balancing Issues
• Scheduling to Primary Delivery Points
• Winter
– New York – TGP Zone 5 (Nashville)– New York – TGP Zone 5 (Nashville)
– Pennsylvania – TGP Zone 4 (Sharon)
• Summer
– New York - TGP Zone 5 – Storage Fill (Nashville)
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National Fuel
Daily Delivery Quantity (“DDQ”) Averaging
• DDQs are typically averaged for weekends and
holidays, subject to operational requirements.
• Averaging is suspended when weekend or
holiday related gas days’ mean temperature is holiday related gas days’ mean temperature is
forecast to be 15 degree Fahrenheit (50DD) or
colder, or when extreme temperature
variations, either warm or cold, are forecast.
• Suspension notice will be provided on the
prior business day.NFGDC Spring 2015 Marketer
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National Fuel
ESS Inventory Levels– NY&PA
End of Month Minimum % FullApril 0%
May 12%
June 29%
July 46%July 46%
August 63%
September 80%
October 95%
November 90%
December 75%
January 50%
February 28%
March 0%NFGDC Spring 2015 Marketer
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National Fuel
Holiday/Split Weekend DDQs
July 2015
1 2 3 4 5 6
Wed Thu Fri Sat Sun Mon
• Wed: Notice provided if DDQs will not be averaged
• Thu: DDQs posted for Fri - Mon
Gas trades on ICE for Fri - Mon
Wed Thu Fri
Holiday
Sat Sun Mon
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Questions?Questions?
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