SNG/EEC Expansion Projects & SNG Seamless Service. WebEx Training November 15, 2016

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Andra Taylor
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1 SNG/EEC Expansion Projects & SNG Seamless Service WebEx Training November 15,

2 Agenda Update on Expansion Status Elba Express Company ( EEC ) Expansion Fuel Southern Natural Gas ( SNG ) Seamless Service Overview Contracts for Expansion Capacity Capacity Release Rates and Fuel Seamless Nominations Pathing and Route Indicator Fuel Examples Q&A 2

3 Update on Expansion Projects In-service target is December 1, 2016 The SNG facilities necessary to commence service are complete, but service is dependent on the start of SNG s FT service on EEC EEC facilities are nearing completion for FT contract with SNG An update regarding EEC s status will be provided on November 18 We will try to provide the in-service notice by 4:00 p.m. two days prior to the effective date We may allow capacity release offers to be entered early for December 1, subject to recall 3

4 EEC Expansion Service Fuel Separate expansion fuel rate required by FERC EEC filed 0.95% as gas retained for operations for expansion service (GRO (2016 Expansion)) Existing North to South FT and IT shippers will pay the existing 0.69% fuel (GRO (North-to-South)) All shippers pay the LAUF, currently 0.23% In summary, for December 2016 May 2017 Expansion shippers will provide 1.18% fuel Existing N-S FT and IT shippers will provide 0.92% fuel EEC files updated fuel rates June of each year 4

5 SNG s Seamless Expansion Service SNG will be an FT shipper on EEC and provide seamless service to its expansion shippers 217,110 dth/d Transportation Demand ( TD ) initially 242,351 dth/d TD effective 6/1/17 EEC points and segments will be set up as Zone 3 points and segments on SNG Point Nbr Point Name Seg Nbr TRNSCO/EEC Z4 HART TRNSCO/EEC Z5 ANDERSON SO CO/EEC PLANT MCINTOSH EFFINGHAM EFFINGHM/EEC PLANT EFFINGHAM SLNG/EEC CHATHAM DCGT/EEC PORT WENTWORTH CHATHAM EEC/SNG CYPRESS EFFINGHAM EEC/SNG PT WENTWORTH CHATHAM 699 5

6 SNG s Seamless Expansion Service (cont d) SNG s firm expansion shippers will have capacity rights through the applicable EEC and SNG segments from their primary receipt PINs to their primary delivery PINs Expansion shippers will nominate on their SNG expansion contract from the Transco interconnect(s) for delivery on SNG (1 nomination across 2 pipelines, i.e., seamless ) SNG will then submit the corresponding nominations to EEC on behalf of its shippers If SNG s firm expansion shippers are not nominating all of their capacity on a day, then nominations on other contracts will be scheduled based on queue priority on SNG up to SNG s TD on EEC 6

7 Expansion Contracts & CR Expansion shippers have signed MFTE-SNG master contracts with an Exhibit C for the subscribed expansion capacity If expansion capacity is released, the Replacement Shipper must acquire it under an MFTE-SNG contract with an Exhibit C Exhibit C sets out the EEC charges the Replacement Shipper must pay to SNG if the EEC capacity is used, i.e., The FERC approved fuel retention charges as set forth in EEC s Tariff All other FERC approved surcharges and charges generally applicable to firm transportation service as set forth in EEC s Tariff, except for the ACA surcharge To request an MFTE-SNG contract, #SNGContractMGMT@KinderMorgan.com To execute the Contract and Exhibit C, select the Contracts folder, then select the MFTE-SNG agreement, and right click for the menu to select contract execution 7

8 Expansion Contracts & CR (cont d) Offer and Bid Rates The filed maximum tariff rate for the expansion service is $13.52/Dth of TD per month Shippers have the option to capacity release at a rate higher than the max tariff rate for a term of one year or less Any capacity release offers with a term greater than one year cannot be released at a rate greater than the max tariff rate Confirmed bids of released capacity will be awarded to the primary PINS After the capacity is awarded, the Replacement Shipper has the option to request a different PIN, but the choices are limited to in-the-path PINS, like any other acquired capacity 8

9 Exhibit C Requirement for Other Transportation Contracts Existing Master FT, Master FTNN and/or IT contracts with SNG may be used to submit seamless nominations from EEC/Transco receipt PINS on an out-of-path or IT basis Shipper must execute an amendment adding Exhibit C to its contract before nominations using EEC capacity will be accepted Includes firm, acquired firm, and interruptible transportation services #SNGContractMGMT@KinderMorgan.com specifying the Master contract(s) and/or IT contract to amend Please note that pool contracts on SNG are not eligible to nominate seamless service since they are not subject to transportation charges 9

10 In Summary: Charges and Fuel for Seamless Service Using EEC Capacity SNG charges are applicable: Commodity and surcharges Transportation commodity for receipt zone to delivery zone Zone matrix and maximization rules apply ACA and SCRM ACA is effective Oct. 1 to Sept. 30 each year SCRM is effective Jan. 1 to Dec. 31 each year SNG Fuel is applicable: Zone of delivery, intrazone, or eligible backhaul Winter fuel is effective Oct. 1 to Mar. 31 each year Summer fuel is effective Apr. 1 to Sept. 30 each year EEC fuel is applicable: Initial expansion fuel of 1.18% EEC refiles its fuel rates to be effective June of each year At this time, EEC does not have FT commodity charges within TD, and a second ACA charge will not apply 10

11 Nominations and Fuel Example 11

12 SNG PINs on EEC for Expansion Service EEC PINs and Segments to be added as nominatable points on SNG (Zone 3) Point Nbr Point Name Seg Nbr TRNSCO/EEC Z4 HART TRNSCO/EEC Z5 ANDERSON SO CO/EEC PLANT MCINTOSH EFFINGHAM EFFINGHM/EEC PLANT EFFINGHAM SLNG/EEC CHATHAM DCGT/EEC PORT WENTWORTH CHATHAM EEC/SNG CYPRESS EFFINGHAM EEC/SNG PT WENTWORTH CHATHAM 699 Shippers should monitor the SNG EBB for the above segments in determining available capacity 12

13 Pathing of Seamless Nominations SNG will schedule the seamless nominations from EEC to SNG using the default path through EEC-SNG Port Wentworth Shippers with contracts pathed through the SNG-EEC Cypress Interconnect must include the route indicator Cypress in the nomination to receive primary to primary scheduling priority Capacity can be nominated outside of the primary capacity path and can be scheduled on an out-of-path basis if capacity is available Priorities through these virtual segments are evaluated no differently than any other segment on SNG. No bumping on ID3, EPSQ still retained, and capacity is available for nominations by shippers with an Exhibit C. 13

14 Route Indicator SNG customers will have the ability to identify an alternate segment path in Zone 3 At the time of nominations, if you want to follow the red path below - select Cypress from the Route Indicator field Default Path Cypress Path 14

15 Uses Segment 699 to cross over from EEC into SNG Default Route 15

16 Cypress Route Uses Segment 599 to cross over from EEC into SNG 16

17 Route Indicator 17

18 Seamless Nominations Transco Zone 4 Receipt PIN SNG Zone 3 Delivery at the Seacoast PIN Cypress Route Fuel displays as a total pancaked fuel qty=187 Dth; Derived Fuel % of

19 Fuel Calculation Calculation steps: Determine the delivery volume on SNG For this example we will use 10,000 Dth Gross the delivery volume up by the SNG fuel 10,000 Dth / ( intrazone 3) = 10,067 Dth Use the calculated volume to apply the EEC fuel 10,067 Dth / ( ) = 10,187 Dth 10,187 Dth is the receipt volume to be nominated at the Transco receipt point 19

20 Fuel Example 20

21 Determining Fuel SNG encourages shippers to use the Fuel Calculator in DART From the Navigation Panel: Nominations Fuel Calculator Also, in the nomination screen, shipper can input the quantity to be delivered on SNG and DART will compute the total fuel 21

22 Fuel Calculator Be sure to enter the Route Code Notice the derived Total Fuel % = That is Total Fuel on both pipes as shown in the nomination matrix 22

23 Contacts for Assistance Account Managers Walter Coe Lisa Guthrie Jerry Nelson On-Call Account Manager Contract Administration Adam Harris Shari Jones Contracts Hotline Scheduling Gina Mabry, Manager Scheduling Hotline Katie Cornutt Veronica Esparza Phyllis Miller Tracy Minter Greg Pollard Jeremy Rainwater

24 Questions? 24

25 Thank You for Your Business 25

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