spring 2014 master - national fuel gas · winter 2013-2014 40 50 60 70 national fuel degree days...

National Fuel Gas Distribution Corporation Spring 2014 Marketer/Supplier

Teleconference March 11, 2014

AGENDA

2:00 pm Welcome and Roll Call Dave Wolford

2:15 pm Operational Update Dave Wolford

2:45 pm Lessons Learned – Potential Changes John Polka

3:00 pm Capacity Update Bob Michalski

3:15 pm Rates & Regulatory Update Mike Novak

o Federal Regulatory Update o NY Regulatory Update o PA Regulatory Update

3:45 pm General Discussion All

4:00 pm Closing Dave Wolford

National Fuel Gas Distribution Corporation

Spring 2014

Marketer/Supplier Teleconference

Operational Update

Presentation by: Dave Wolford

March 11, 2014

1NFGDC Spring 2014 Marketer

Teleconference

Transportation CustomersTransportation Customers

STAND-ALONE CUSTOMERS

MONTHLY (MMT) –

New York 1

Pennsylvania 0

DAILY (DMT) –

New York 0

Pennsylvania 73

TOTAL 74

AGGREGATION CUSTOMERS

TOTAL NFGDC 155,917

New York (STBA) 119,800

New York (DMT) 34

Pennsylvania (MMNGS) 2,856

Pennsylvania (SATS) 33,153

TOTAL 155,843


Teleconference

80,000

100,000

120,000

140,000

Nu

mb

er o

f Cu

sto

mer

s

National Fuel Gas DistributionNY STBA Enrollment

Residential

Non-Residential

Total


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

Nu

mb

er o

f Cu

sto

mer

s

20,000

25,000

30,000

35,000

Num

ber o

f Cus

tom

ers

National Fuel Gas DistributionPA SATS Enrollment

Residential

Non-Residential

Total


Teleconference

0

5,000

10,000

15,000

Jun-

10

Aug

-10

Oct

-10

Dec

-10

Feb-

11

Apr

-11

Jun-

11

Aug

-11

Oct

-11

Dec

-11

Feb-

12

Apr

-12

Jun-

12

Aug

-12

Oct

-12

Dec

-12

Feb-

13

Apr

-13

Jun-

13

Aug

-13

Oct

-13

Dec

-13

Feb-

14

Num

ber o

f Cus

tom

ers

2,000

2,500

3,000

3,500

Num

ber o

f Cus

tom

ers

National Fuel Gas DistributionPA MMNGS Enrollment Total

Residential

Non-Residential


Teleconference

0

500

1,000

1,500

Aug

-06

Dec

-06

Apr-0

7

Aug

-07

Dec

-07

Apr-0

8

Aug

-08

Dec

-08

Apr-0

9

Aug

-09

Dec

-09

Apr-1

0

Aug

-10

Dec

-10

Apr-1

1

Aug-

11

Dec

-11

Apr-1

2

Aug

-12

Dec

-12

Apr-1

3

Aug

-13

Dec

-13

Num

ber o

f Cus

tom

ers

90.6 87.6

85.4 87.0

80.3

91.1

60.0

70.0

80.0

90.0

100.0

NEW YORK12 Month Totals

(Through December 2013)Throughput Transported


Teleconference

44.9 42.7 42.7 43.5 41.6

46.8

0.0

10.0

20.0

30.0

40.0

50.0

2008 2009 2010 2011 2012 2013

BC

F

42.6 40.3 41.1 42.1

39.5

45.1

25.3

30.0

35.0

40.0

45.0

50.0

PENNSYLVANIA12 Month Totals

(Through December 2013) Throughput Transported


Teleconference

18.9 16.8

18.7 21.1 21.3

25.3

0.0

5.0

10.0

15.0

20.0

25.0

2008 2009 2010 2011 2012 2013

BC

F

133.2 127.9 126.5 129.1

119.8

136.2

100.0

120.0

140.0

160.0

NFGDC YEARLY DELIVERIES12 Month Totals

(Through December 2013) Throughput Transported


Teleconference

63.8 59.5 61.4

64.6 62.8

72.1

0.0

20.0

40.0

60.0

80.0

2008 2009 2010 2011 2012 2013

BC

F

49.5% 48.8% 50.0% 50.0%51.8% 51.4%

40%

50%

60%

NYTRANSPORTATION PERCENTAGE

OF 12 MONTH DELIVERIES


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0%

10%

20%

30%

Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13

44.4%41.7%

45.4%

50.1%53.9%

56.1%

40%

50%

60%

PATRANSPORTATION PERCENTAGE



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0%

10%

20%

30%


47.9%46.5%

48.5% 50.1%52.5% 52.9%

40%

50%

60%

NFGDC TRANSPORTATION PERCENTAGE



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0%

10%

20%

30%


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: 716-587-7232

– Bi-Weekly Operational Teleconferences

• http://www.nationalfuelgas.com/marketers/announce.asp


Teleconference

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


Teleconference

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


Teleconference

SYSTEM MAINTENANCE ORDERSSYSTEM MAINTENANCE ORDERS

* TO MAINTAIN SYSTEM OPERATIONAL INTEGRITY *

• SYSTEM ALERT

• OFO

• UNAUTHORIZED OVERRUN

• CURTAILMENT


Teleconference

Operational Update

Winter 2013 – 2014(Gas days inclusive)

• System Alerts

– 5 Cold Weather

• January 1-8, 20-29

• February 5-11, 14-17, 24-March 4

– 12 DDQ Averaging

November 16-18• November 16-18

• December 21-23, 24-26, 28-30

• January 1-2, 4-6, 18-21, 25-27

• February 8-10, 15-18, 22-24

• March 1-3

• OFOs

– 3 Cold Weather

• January 1-3, 6-8, 20-29


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Winter 2013-2014

40

50

60

70

National Fuel Degree Days (HDD)

Buffalo NY - 2013-2014 Actual HDD as of 3-6-14 12.9% CTN

Forecasted HDD through 3-31-14 11.3% CTN

January 7th

January 28th

17

0

10

20

30

Nov Dec Jan Feb MarActual HDDs (by Day) Normal HDDs (by Day) Forecasted HDDs Mar 7 - Mar 17

Actual HDD for the month of

November 2013 11.7%CTN

December 2013 5.4% CTN

January 2014 11.7% CTN

February 2014 16.0% CTN

March 2014 (Est) 12.0% CTN

NFGDC Spring 2014 Marketer

Teleconference

Winter 2013-2014

4,000

5,000

6,000


Cumulative Buffalo NY - 2013-2014

12.9 % Colder through 3/6/14

6.1 % WTN through 3/31/13

18

0

1,000

2,000

3,000

Nov Dec Jan Feb Mar

Actual HDDs (by Day) Winter 2013-14 Normal HDDs (by Day) Actual HDDs (by Day) Winter 2012-13 Actual HDDs (by Day) Winter 2011-12

Cumulative HDD through






22.2 % WTN through 3/31/12


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Winter 2013-2014

40

50

60

70


Erie PA - 2013-2014 Actual HDD as of 3-6-14 15.1% CTN

Forecasted HDD through 3-31-14 12.9% CTNJanuary 7th

January 28th

19

0

10

20

30

Nov Dec Jan Feb Mar

Actual HDDs (by Day) Normal HDDs (by Day) Forecasted HDDs Mar 7 - Mar 17

Actual HDD for the month of







Teleconference

Winter 2013-2014

4,000

5,000

6,000


Cumulative Erie PA - 2013-2014

15.1 % Colder through 3/6/14

3.2 % WTN through 3/31/13

20

0

1,000

2,000

3,000

Nov Dec Jan Feb Mar

Actual HDDs (by Day) Winter 2013-14 Normal HDDs (by Day) Actual HDDs (by Day) Winter 2012-13 Actual HDDs (by Day) Winter 2011-12

Cumulative HDD through






22.4 % WTN through 3/31/12


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Winter 2013Winter 2013--2014 Operations Summary2014 Operations Summary

• Under unusually demanding circumstances….. So far, so good.

• January

Delivery Reliability:

• NY transportation allocated deliveries of 8.02 Bcf, 4.69 Bcf during OFO’s.

• DDQ deficiencies totaled 452 Mcf.

• PA transportation allocated deliveries of 3.76 Bcf, 2.15 Bcf during OFO’s.

• DDQ deficiencies totaled 25 Mcf.

Released Storage Capacity Management:

• NY STBA ESS of 2.91 MMDth.

• EOM inventory shortfalls totaled 1,002 Dth.

• PA SATS ESS of 1.00 MMDth.

• EOM inventory shortfalls totaled 0 Dth.

• February - Preliminary data looks good, awaiting final allocation numbers.

• March – In like a lion, out like a lamb?


Teleconference

Operational Update

22

Questions?


Teleconference


Spring 2014


Lessons Learned – Potential ChangesLessons Learned – Potential Changes

John Polka

March 11, 2014


Teleconference

Discussion Topics

• Winter Review

• Market Conditions

• Capacity Planning


Teleconference

Winter Review

Buffalo, NY 5 Coldest Winters:

Buffalo, NY5 Warmest Winters:

Winter % Colder Winter % Warmer

1933-34 14.3% 2011-12 22.3%

1976-77 11.3% 2001-02 15.6%

Erie, PA 5 Coldest Winters:

Erie, PA5 Warmest Winters:

Winter % Colder Winter % Warmer

1969-70 19.8% 2011-12 23.0%

1977-78 18.1% 2001-02 16.9%

25

1995-96 10.7% 1931-32 14.5%

1962-63 10.4% 1948-49 12.7%

1977-78 10.3% 1952-53 12.6%

2013-14 Estimated Winter Season

11.3% 2012-13 6.1%

1976-77 17.3% 1931-32 16.6%

1978-79 13.1% 1948-49 16.0%

1962-63 12.5% 1952-53 15.1%

2013-14 Estimated Winter Season

12.9% 2012-13 3.2%


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Winter Review


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Market Conditions

3Bcf/day /year

28Bentek Production Report-December 2013

3Bcf/day /year


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NYMEX Natural Gas Settlement Price, $/DTH

8.00

9.00

10.00

11.00

12.00

13.00

14.00

$10 (Jun-08 Futures)

$8.00

Market Conditions

29

-

1.00

2.00

3.00

4.00

5.00

6.00

7.00

8.00

Jan-97 Jan-99 Jan-01 Jan-03 Jan-05 Jan-07 Jan-09 Jan-11 Jan-13 Jan-15 Jan-17

NYMEX

Futures

as of

3/6/14

$4.00

$2.00

$4.00

$6.00


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Dawn

High: $48.00

Algonquin

Northeast Traded Cash Prices

Winter Peak 2014

Waddington

High: $92.50

Market Conditions

TRN NonNY

High: $130.00

TRN NY

High: $135.00

Algonquin

High: $90.00

TGP Zone 0

High: $8.60

TGP 219

Dominion SP

High: $9.50

High: $8.75


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TGP

313 Pool

Empire

Millenium

Market Conditions

31

Transco

Leidy Line

TeTCo –M2

TGP

219 Pool

Columbia

Appalachian

NFGS

App Zn 2

DTI

South

Point

NFGD Market Area Supply

Diversity


Teleconference

Procurement Strategy

1. Maintain high level of reliability

2. Preserve ROFR and redundant delivery rights

3. Optimize pipeline and basin diversity

Capacity Planning

3. Optimize pipeline and basin diversity

4. Purchase least cost supplies

5. Negotiate favorable contract extensions

6. Promote development of market area pools

7. Identify liquid points / liquid paths

8. Develop mix of long-haul and short-haul capacity paths


Teleconference

27,000 Dth/d

(NY & PA)Lewiston

Pekin

Clarence

East

Aurora

Nashville

Hamburg /

Colden Inj

Mayville

TGP Zone 5

Capacity planning

TGP 143,000 Dth/d

(NY & PA)

Rose Lake

Hebron Inj

Lamont

Cranberry

Sharon

Mercer

Camp Perry

Cochranton

Pettis

Townville

Union City

Wattsburg

Highland

Petersburg

Sherman

TGP Zone 4


Teleconference

Capacity Adjustments

1. TGP Long-Haul to Short-Haul migration

� Receipt points from Zones 0 & 1 to Zone 4

2. Texas Eastern Long-Haul to Short-Haul migration

Capacity Planning

2. Texas Eastern Long-Haul to Short-Haul migration

� Receipt Points from Access Area to M-1

3. Canadian Supply Alternatives

� TGP - Niagara to Zones 5 & 4

� Empire - Chippawa to Grand Island


Teleconference

Capacity Planning

TGP Long-Haul Pipeline Path


Teleconference

Capacity Planning

TGP Short-Haul Pipeline Path


Teleconference

Receipt

Point

Redundant

Delivery

Points

219

Pool

Capacity Adjustments

Zone 4 to 4 Path


Teleconference

Capacity Mix Based on Primary Receipt Point

NFGDC-NY Capacity by Basin

Capacity Planning

33%

Historic - 2009

47%

Adjusted - 2015

38

67%

33%

Southwest

Northeast

47%

53%


Teleconference

Capacity Mix Based on Primary Receipt Point

NFGDC-PA Capacity by Basin

Capacity Planning

14%

Historic - 2009

54%

Adjusted - 2015

39

86%

14%

Southwest

Northeast 46%

54%


Teleconference

Capacity Planning

• System Balancing Issues

�Winter

�New York – TGP Zone 5 (Pekin)

�Pennsylvania – TGP Zone 4 (Sharon)

� Summer

�Storage Fill – TGP Zone 5

40

�Storage Fill – TGP Zone 5

• Capacity Allocation to Marketers

�April 2014

�Potential Summer 2014 adjustments

�Additional information and conference calls prior to changes

�Increased potential for summer & winter delivery requirements


Teleconference

Lessons Learned – Potential Changes

41

Questions?


Teleconference


Spring 2014


Capacity UpdateCapacity Update

Presentation by: Bob Michalski

March 11, 2014


Teleconference

Discussion Topics

• Capacity Issues:

• PA SATS – Released Transmission Capacity (RTC)

• NY STBA - Mandatory Upstream Transmission

Capacity (MUTC)Capacity (MUTC)

• NY STBA - Grandfathered Upstream Transmission

Capacity (GUTC)

• Released ESS Inventory Requirements

• DDQs for Holiday/Split Weekend Scheduling


Teleconference

PA SATS RTC Capacity Mix/Rates

• April 2014

• TGP FT-A: from Zone 0 to Zone 4 - 40%

• Released by NFGDC at discounted reservation rate

• Estimated @ $13.6926/Dth/month• Estimated @ $13.6926/Dth/month

• NFGSC ESS: 60%

• Released by NFGDC at maximum reservation rate

• MSQ - $0.0404/Dth/month

• MDWQ - $2.5959/Dth/month


Teleconference

RTC TGP Release SummaryTGP FT-A Z4 Delivery Contract – 40% of RTC

Z0 Z1 Release Rate/Dth

Mar 2013 100% $14.9233

Aug 2013 100% $13.9783Aug 2013 100% $13.9783

Mar 2014 100% $13.6926

Aug 2014 * 100% $11.9801

Aug 2015 * 100% $10.5761

* Rates based on anticipated capacity costs.


Teleconference

NY STBA MUTC Capacity Mix/Rates

• April 2014

• TGP FT-A: from Zones 0, 1 & 4 to Zone 4 - 86%

• Released by NFGDC at discounted reservation rate

• Estimated @ $10.9488/Dth/month• Estimated @ $10.9488/Dth/month

• NFGSC ESS: 14%

• Released by NFGDC at maximum reservation rate

• MSQ - $0.0404/Dth/month

• MDWQ - $2.5959/Dth/month


Teleconference

MUTC TGP Release Summary

TGP FT-A Z4 Delivery Contract – 86% of MUTC

Z0 Z1 Z4 Release Rate/Dth

Mar 2013 100% $11.8682

Apr 2013 33% 38% 29% $11.4895

Apr 2014 * 17% 20% 63% $10.9488

Apr 2015 * 17% 20% 63% $10.0005

* % based on Mar 2014 STBA. Rates based on anticipated capacity costs.


Teleconference

NY STBA GUTC

• April 2014: Provide capacity plan

• July 2014: Demonstrate winter capacity

• GUTC must deliver to primary EFT receipt

pointspoints

• Questions?

• Contact Ken McAvoy - 716-857-7960.


Teleconference

TGP Retainage Rates

• April 2014 FT-A:

• Zone 0 – Zone 4: 3.50%

• Zone 1 – Zone 4: 2.99%• Zone 1 – Zone 4: 2.99%

• Zone 4 – Zone 4: 0.61%


Teleconference

TGP Commodity Rates

• April 2014 FT-A:

• Zone 0 – Zone 4: $0.2926/Dth

• Zone 1 – Zone 4: $0.2488/Dth• Zone 1 – Zone 4: $0.2488/Dth

• Zone 4 – Zone 4: $0.0497/Dth


Teleconference

NFGSC Retainage Rates

• April 2014:

• EFT: 1.10%

• ESS Injection and Withdrawal: 0.79%• ESS Injection and Withdrawal: 0.79%


Teleconference

ESS Inventory Levels– NY&PA

End of Month Minimum % FullApril 0%

May 12%

June 29%

July 46%

August 63%

September 80%

October 95%

November 90%

December 75%

January 50%

February 28%

March 0%


Teleconference

Holiday/Split Weekend DDQ Averaging

Aug 2014 Sep 2014

27 28 29 30 31 1 2

Wed Thu Fri Sat Sun Mon

Holiday

Tue

53

• Wed: Notice given if DDQs will not be averaged

• Thu: DDQs posted for Fri – Sun (Aug) & Mon – Tue (Sep)

Gas trades on ICE for Fri - Sun

• Fri: Gas trades on ICE for Mon - Tue

Holiday


Teleconference

Capacity Update

54

Questions?


Teleconference


Spring 2014


Rates & Regulatory Update

Presentation by: Michael Novak

March 11, 2014


Teleconference

Rates & Regulatory UpdateFederal Update

Pipeline Rate Events

• RP12-993 Transcontinental Gas Pipeline– General Rate Case – Order approving settlement issued 12/9/2013.

– Settlement Rates were placed into effect 3/1/2014.

– Small downward influence on NFGDC’s NY upstream capacity release rate beginning in April 2014 as a part of the annual “rate reset”.beginning in April 2014 as a part of the annual “rate reset”.

• RP12-1021 Columbia (“TCO Modernization”)– Settlement filed providing Columbia with a mechanism to recover pipeline

integrity management costs in exchange for a rate refund and rate decrease.

– Initial rate reductions and refunds have been completed.

– Annual rate increases through 2018 reflecting Columbia’s cost recovery will put upward pressure on NFGDC’s PA upstream capacity release rates.


Teleconference


Pipeline Rate Events

• RP12-605 et. al. Columbia - Operational Transaction Rate Adjustment (“OTRA”)

– Purchases/Sales (and prospectively transportation) transactions aimed at ensuring that storages serving customers in Columbia northwestern Ohio markets have adequate inventory.

• Columbia believes the mechanism will no longer be necessary when Utica production is sufficiently developed.developed.

– Such transactions are considered more efficient and effective than issuing OFOs requiring receipts into the northwestern system.

– OTRA cost recovery tends to increase NFGDC’s PA upstream capacity release rates.

• RP14-262 Dominion Transmission, Inc. (“DTI”)– Order on Uncontested Settlement issued 2/5/2014.

• Nearly 24% Reduction in Fuel Retention Percentages

– Settlement Retention Percentages placed into effect 3/1/2014.

– While the variable costs of utilizing DTI capacity will decrease in relative terms, there will be no impact upon NFGDC’s NY upstream capacity release rate.


Teleconference


Other Pipeline Filings

• RP12-514 Tennessee Gas Pipeline

– Scheduling Priorities Filing

– Distribution supports TGP’s filing because it enhances delivery rights for gas

purchased from secondary-in-path receipt points, including pools, to primary

delivery points.delivery points.

Status:• On 10/17/2013, FERC issued an Order On Technical Conference And Denying

Rehearing which effectively approved TGP’s proposal.

• TGP anticipates implementing the proposal on 5/1/2014.

– Secondary-in-path receipts scheduled to primary delivery points and Primary receipts

scheduled to secondary-in-path delivery points will receive a higher scheduling priority,

respectively, than other secondary nominations, i.e. to/from out-of-path points.

• Indicated Shippers are seeking rehearing of this Order.

– NFGDC has filed an Answer to the Indicated Shippers Rehearing Request


Teleconference


Gas-Electric Harmonization

• Issues surrounding increased use of gas as a fuel for electric generation.

– Order 787 – issued 11/15/2013 - at improving coordination between gas and

electric industry during critical and emergency periods.

– Various proposals for changes to gas day, nomination cycles, bumping rules

and gas trading are under discussion within both the gas and electric

industries.industries.

• FERC may issue a Notice of Proposed Rulemaking

– General concern about how changes might impact flexibility and reliability of

firm services offered by pipelines to existing firm customers.

• 4/1/2014 - Technical conference on Winter 2013-2014 Operations and

Market Performance in Regional Transmission Organizations and

Independent System Operators

– Winter Gas Pricing will be discussed - Stay tuned…


Teleconference

Rates & Regulatory UpdateNew 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

– Order issued on 2/20/2014• UBP Changes regarding Door-to-Door Marketing.

• Changes regarding ESCO service to Low Income Customers.

• Technical Conference to address implementation of new requirements from Order.• Technical Conference to address implementation of new requirements from Order.

• Collaborative to address changes in EDI standards related to new requirements from Order.

• Collaborative on ESCO Specific POR Discount Rates.

– Notice Seeking Comments issued 2/25/2014 – Questions asked about:• Costs of Acquiring New Customers.

• Modifications to Utility Consolidated Billing and Barriers to ESCO Consolidated Billing.

• Processing of Enrollment Requests.

• Data Availability and Facilitation of Energy-Related Value-Added Services.

• ESCO Eligibility & Compliance Certification.

Comments due 4/25/2014 with Reply Comments due on 5/12/2014


Teleconference


Case 13-G-0136 - Proceeding on Motion of the Commission as to the Rates, Charges, Rules and Regulations of the National

Fuel Gas Distribution Corporation for Gas Service

– On 12/6/2013, all active parties but one filed a Joint Proposal intended to resolve all aspects of NFGDC’s earnings in this proceeding.

• Refund $3.73 million to residential customers and $1.77 million to non-residential customers.customers.

• Provide $1.75 million in additional funding for weatherization projects for low income customers, and $250,000 for furnace replacements for Home Energy Assistance Program (HEAP) customers.

• Reduce accumulated deferrals to the benefit of customers.• No change in base delivery rates before 10/1/2015.

– Comments and Briefs have been filed.– Public Hearings have taken place.– Awaiting an Order.


Teleconference


Staff White Paper on Lost and Unaccounted For (LAUF) Gas

• LAUF Report recommendations to be implemented.– Standardization of LAUF calculation across all NY LDCs with limited variations

to account the difference in system configurations.

– Going forward, the Factor of Adjustment (FOA) will be based upon a

historical average five year average with a dead band of plus or minus 1%.

– System Performance Adjustment Mechanism (SPAM) – a surcharge/refund to – System Performance Adjustment Mechanism (SPAM) – a surcharge/refund to

all firm customers to account for the difference between the FOA and the

actual losses within the dead band based upon the LDC’s average commodity

cost of gas.

• NFGDC Implementation Details– 2.07% FOA

– Dead band between 1.50% and 2.63%

– TSS will use 2.03% retention factor which is equivalent to 2.07% FOA


Teleconference


NY GTOP – update issued 2/28/2014

– Mandatory Upstream Transmission Capacity (MUTC) allocation changes.

– Clarification of procedures surrounding Upstream Agency for MUTC Capacity.

– Procedures describing exemptions from calculated DDQ delivery requirements

for qualifying SC-13M Customers.

– Procedures concerning supplier application timelines and default volumetric

assumptions.assumptions.

• Another GTOP filing primarily to address further MUTC

allocation changes and delivery requirements is likely late

spring/early summer.

• Otherwise, no major Distribution-initiated tariff changes

affecting STBA service are anticipated, however…


Teleconference

Rates & Regulatory UpdatePennsylvania Update

Annual 1307(f) Filing

• Status Update– Data, Exhibits and Testimony filed January 2014

– Settlement Discussions Likely to Begin Soon

– No major non-gas cost tariff initiatives are being bundled with 1307F filing

• Filing Highlights – proposed rate changes:• Filing Highlights – proposed rate changes:– MMT from $0.2600 to $0.2500

– SATC from $0.2372 to $0.2495

– PSB from $1.1035 to $1.3631

– SB from $0.5213 to $0.6440

– RTC from $13.6926 to $11.9801 (weighted avg. demand cost of upstream capacity)

– DTR [Nov. $0.29 to $0.17, Dec $0.55 to $0.37, Jan $0.41 to $0.25 & Feb $0.13 to $0.01]

• Implementation to be effective 8/1/2014


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PA GTOP – update issued 2/28/2014

– Change to upstream capacity receipt point for SATS capacity releases.– Procedures related to Upstream Agency Form.– Clarifying language regarding DDQ Exemption procedures. – Overview of Eligible Customer List procedures.– Updated procedures concerning supplier application timelines and default

volumetric assumptions .volumetric assumptions .

• Another GTOP update will be issued in late July to implement any 1307f oriented changes.

• Otherwise, no major Distribution-initiated tariff changes affecting SATS or MMNGS services are anticipated; however...


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Natural Gas Distribution Company Eligible Customer Lists (ECL)

• Case M-2012-2324075 - Final Order entered 9/27/2013 – Guidelines (non-binding) similar to those in place for Eligible Customer Lists in the PA electric market:

1. Licensed competitive suppliers should have access to the distribution utility customer lists

2. Licensed competitive suppliers are obligated to safeguard the confidentiality of customer information and

3. Customers will have the opportunity (on an opt-out basis) to restrict the 3. Customers will have the opportunity (on an opt-out basis) to restrict the release of all of their account information, just the historical data or none of their account information.

• Customer Opt-Out Preferences were solicited via phone, mail and web-site.– Web site remains active to permit customers to update their preference at any time.

– Next system-wide solicitation scheduled for 2016.

• Initial Monthly ECL posted in February 2014.


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I-2013-2381742 - Investigation of Pennsylvania’s Retail Natural

Gas Supply Market– Order entered 9/12/2013.

• Investigation to assess whether effective competition exists and make recommendations for improvements to

ensure that a properly functioning and workable competitive retail natural gas market operates in Pennsylvania.

– Questions/Topics raised:• The current status of retail natural gas competition for customers, by class and by service territory.

• For each such customer class and service territory, how accessible are competitive suppliers?• For each such customer class and service territory, how accessible are competitive suppliers?

• Role of utility as Supplier of Last Resort (SOLR).

• Whether the Commission’s recently completed electric RMI would be applicable and useful to implement in the

retail gas market, e.g., Seamless Move, Accelerated Switching Timeframes, Standard Offer Program, Low-income

customer shopping, Expanded Consumer Education about shopping.

• Whether to address standardized supplier tariffs and business practices with regard to imbalance trading,

tolerance bands, cash out and penalties, nominations and capacity.

– Comments were filed by a cross section of industry participants in December.

• Awaiting next steps.


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L-2012-2294746 - Establishing A Uniform Definition and Metrics For Unaccounted-For-Gas (UFG)

• Final Rulemaking Order issued 4/3/2013.– Standard UFG formula applied on an annual basis for the 12 months ended 8/31.

– UFG is calculated for distribution, transmission, storage and production/gathering – UFG is calculated for distribution, transmission, storage and production/gathering systems.

– Over 5 years, in 0.5% increments, distribution system UFG should be reduced form 5% to 3%.

– Distribution expects to file its first UFG Report in Fall 2014.

• The Allowance for Losses factor has historically been addressed in the 1307f proceeding.– No change expected for 2014.


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Rates & Regulatory UpdateBarcelona Project (NY & PA)

New Customer Information System (CIS)

• Potential Changes– Features of the new CIS software are currently being reviewed in the context

of how service is currently provided.

– Various tariff and GTOP filings could be made in anticipation of the July 2015

target implementation date.target implementation date.

• Filings would contain necessary changes but the intent would be to preserve the character of

tariff services and related features.

• Dates will also need to be coordinated with Case 12-M-0476 Requirements.


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Rates & Regulatory Update

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Questions?


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spring 2014 master - national fuel gas · winter 2013-2014 40 50 60 70 national fuel degree days...

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