National Fuel Gas Distribution Corporation Spring 2017 Marketer/Supplier Teleconference Thursday, March 16, 2017

Transcription

1 Gas Distribution Corporation Spring 2017 Marketer/Supplier Thursday, March 16, 2017 AGENDA 2:00 pm Welcome and Introduction Dave Wolford 2:05 pm Operational Update Dave Wolford 2:20 pm Capacity Update Bob Michalski 2:30 pm Rates & Regulatory Update Mike Novak o Federal Regulatory Update o NY Regulatory Update o PA Regulatory Update 2:50 pm General Discussion All 3:00 pm Closing Dave Wolford

2 National Fuel Gas Distribution Corporation Spring 2017 Marketer/Supplier Operational Update Presentation by: Dave Wolford March 16,

3 Transportation Customers STAND-ALONE CUSTOMERS MONTHLY (MMT) DAILY (DMT) AGGREGATION CUSTOMERS New York 1 Pennsylvania 0 New York 0 Pennsylvania 76 TOTAL 77 New York (STBA) 106,168 New York (DMT) 50 Pennsylvania (MMNGS) 3,250 Pennsylvania (SATS) 27,596 TOTAL 137,064 TOTAL NFGDC 137,141 2

4 140, , ,000 80,000 60,000 40,000 20,000 0 National Fuel National Fuel Gas Distribution NY STBA Enrollment Residential Non-Residential Total Number of Customers Sep-06 Mar-07 Sep-07 Mar-08 Sep-08 Mar-09 Sep-09 Mar-10 Sep-10 Mar-11 Sep-11 Mar-12 Sep-12 Mar-13 Sep-13 Mar-14 Sep-14 Mar-15 Sep-15 Mar-16 Sep-16 Mar-17 3

5 35,000 30,000 25,000 20,000 15,000 10,000 5,000 0 National Fuel Gas Distribution PA SATS Enrollment Residential Non-Residential Total Number of Customers Sep-10 Dec-10 Mar-11 Jun-11 Sep-11 Dec-11 Mar-12 Jun-12 Sep-12 Dec-12 Mar-13 Jun-13 Sep-13 Dec-13 Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Dec-15 Mar-16 Jun-16 Sep-16 Dec-16 Mar-17 4

6 4,000 3,500 3,000 2,500 2,000 1,500 1, National Fuel Total Residential Non-Residential National Fuel Gas Distribution PA MMNGS Enrollment 5 Number of Customers Nov-14 Mar-15 Jul-15 Nov-15 Mar-16 Jul-16 Nov-16 Mar-17 Nov-06 Mar-07 Jul-07 Nov-07 Mar-08 Jul-08 Nov-08 Mar-09 Jul-09 Nov-09 Mar-10 Jul-10 Nov-10 Mar-11 Jul-11 Nov-11 Mar-12 Jul-12 Nov-12 Mar-13 Jul-13 Nov-13 Mar-14 Jul-14

7 120.0 NEW YORK 12 Month Totals (Through December 2016) Throughput Transported BCF

8 PENNSYLVANIA 12 Month Totals (Through December 2016) Throughput Transported BCF

9 NFGDC YEARLY DELIVERIES 12 Month Totals (Through December 2016) Throughput Transported BCF

10 NY TRANSPORTATION PERCENTAGE OF 12 MONTH DELIVERIES 60% 50% 50.0% 51.8% 51.4% 52.0% 52.2% 51.5% 40% 30% 20% 10% 0% Dec-11 Dec-12 Dec-13 Dec-14 Dec-15 Dec-16 9

11 PA TRANSPORTATION PERCENTAGE OF 12 MONTH DELIVERIES 60% 50% 50.1% 53.9% 56.1% 56.7% 56.1% 56.9% 40% 30% 20% 10% 0% Dec-11 Dec-12 Dec-13 Dec-14 Dec-15 Dec-16 10

12 60% 50% 50.1% NFGDC TRANSPORTATION PERCENTAGE OF 12 MONTH DELIVERIES 52.5% 52.9% 53.6% 53.5% 53.3% 40% 30% 20% 10% 0% Dec-11 Dec-12 Dec-13 Dec-14 Dec-15 Dec-16 11

13 Marketer/Supplier Operations Support NFGDC provides a full range of business tools and support services: NFGDC Website: Operating Procedures Manuals: GTOP, TSS, TSS Reports, Aggregator, Market Pool, Production Pool Transportation Scheduling System TSS Training Help Desks Scheduling: (716) Hours: 7:30 am 5:00 pm on business days TSSSupport@natfuel.com Billing: (716) Hours: 8:00 am 4:30 pm on business days TSD-Billing@natfuel.com After Hours Scheduling Support: (716)

14 New York & Pennsylvania Operations Daily Delivery Quantities (DDQs) DDQs are customer usage estimates based on usage history, weather forecasts, actual measurement Customer usage estimates need to be as accurate as possible Meet daily delivery requirements (DDQs) to serve market Production Daily Quantities (PDQs) PDQs are estimates of local production based on production volume history Local production estimates need to be as accurate as possible Deliver upstream supplies at primary firm or acceptable alternate delivery points 13

15 New York & Pennsylvania Operations Market Pool and Production Pool operators are responsible for monitoring actual flowing volumes and adjusting DDQs and PDQs via TSS Monitor storage inventories Required end of month storage inventory percentages are minimums, not targets End of Month Minimum % Full April 0% May 12% June 29% July 46% August 63% September 80% October 95% November 90% December 75% January 50% February 28% March 0% 14

16 New York & Pennsylvania Operations REMINDER: National Fuel provides PA DMT pool operators, and requesting customers, with official notification of instances of missing or incomplete customer telemeteredreadings via the daily Customer Transportation Statements (CTS). The following statement appears at the bottom of each CTS: NOTE:WHEN 'USAGE EST.' IS SHOWN UNDER THE STMT BASIS COLUMN ON THIS REPORT, IT IS THE MARKET POOL OPERATOR'S RESPONSIBILITY TO OBTAIN A 10:00 A.M. READ DIRECTLY FROM THE CUSTOMER. THIS READ SHOULD BE ED TO TSSSUPPORT@NATFUEL.COM. THIS IS A PA GTOP REQUIREMENT

17 SYSTEM MAINTENANCE ORDERS * TO MAINTAIN SYSTEM OPERATIONAL INTEGRITY * SYSTEM ALERT OFO UNAUTHORIZED OVERRUN CURTAILMENT 16

18 Operational Update Winter (Gas days inclusive) System Alerts 1 Cold Weather December 15 3 Warm Weather February February 28 March 6 3 DDQ Averaging December December 30 -January 3 March 4-6 OFOs None 17

19 DailyDelivery Delivery Quantity ( DDQ ) Averaging DDQs are typically averaged for weekends and holidays, subject to operational requirements. If DDQs will not be averaged, a System Alert will be posted on the business day prior to the day that weekend/holiday DDQs are to be provided. 18

20 Split Weekend DDQ Averaging Apr 2017 May Wed Thu Fri Sat Sun Mon DDQs Averaged Wed: Notice given if DDQs will not be averaged Thu: DDQs posted for Fri Sun(Apr)& Mon (May) Gas trades on ICE for Fri -Sun Fri: Gas trades on ICE for Mon 19

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25 Winter Operations Summary November February, No Issues. March No issues at this point. 24

26 Questions? 25

27 National Fuel Gas Distribution Corporation Spring 2017 Marketer/Supplier Capacity Update Presentation by: Bob Michalski March 16,

28 Discussion Topics NY STBA -Mandatory Upstream Transmission Capacity (MUTC) and Intermediate ESS PA SATS -Released Transmission Capacity (RTC) and Intermediate ESS 27

29 NY STBA Capacity Serves Requirements for up to 62 HDD: 67% MUTC, released at weighted average cost of capacity (WACOC) 15% NFGSC ESS, released at maximum rate 85% TGP, released at rate that blended with the ESS component achieves the WACOC rate: TGP Zone 4 Rose Lake up to 34,000 Dth/day available TGP Zone 5 Nashville additional capacity, as required 33% Intermediate - ESS, maximum rate release 28

30 NY STBA Capacity 29

31 NY MUTC TGP Released Capacity Date Z0-4 Z1-4 Z4-4 Total Z4 Z1-5 Apr % 100% Apr % 38% 29% 100% Apr % 20% 63% 100% Apr % 19% 59% 95% 5% Apr % 21% 61% 100% 0% Apr % 21% 61% 100% 0% 30

32 NY MUTC WACOC & Release Rates Date WACOC ESSMax Rate/Dth TGP Release Rate/Dth WACOC Change Since Apr 2012 Apr 2012 $ $ $ Apr 2013 $ $ $ (3%) Apr 2014 $ $ $ (10%) Apr 2015 $ $ $ (13%) Apr 2016 $ $ $ (7%) Apr 2017 $ $ $ (12%) 31

33 PA SATS Capacity Serves Requirements for up to 62 HDD Capacity mix filed for August 2017: 47% RTC, TGP capacity released at WACOC 53% Intermediate ESS released at max. rate 32

34 PA SATS Capacity 33

35 PA SATS TGP Release Rate Date Z1 Z4 Z0 Z4 TGP Release Rate/Dth* Change Aug % $ Aug % $ (7%) Aug % $ (21%) Aug % $ (32%) Aug % $ (36%) Aug 2017** 100% $9.5277** (36%) *PA TGP Release Rate = PA WACOC Rate. ** 1307(f) Filed Rate/Dth 34

36 Questions? 35

37 National Fuel Gas Distribution Corporation Spring 2017 Marketer/Supplier Rates & Regulatory Update Presentation by: Michael Novak March 16,

38 Rates & Regulatory Update Federal Update Pipeline Rate Events RP FERC initiated a Natural Gas Act section 5 investigation of the rates charged by Empire Pipeline, Inc. ( Empire ) on 1/21/2016. FERC Orders accepting an unopposed Stipulation and Agreement ( Settlement ) were issued on 10/20/2016 and 12/13/2016. The Settlement provides for a final Empire Connector Reservation Rate reduction to go into effect 10/1/

39 Rates & Regulatory Update Federal Update Pipeline Rate Events Several pipelines have filed various tracker filings with changes to become effective 4/1/2017; most of these deal with fuel retention. NFGSC Fuel Tracker originally to become effective 4/1/2017; now 5/1/2017. RP Texas Eastern PCB Tracker Stipulation and Agreement on tracker true-up costs. Tracker surcharge removed from rates effective 4/1/

40 Rates & Regulatory Update New York Update Case 12-M 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 ) 12/15/2016 -PSC issues Order Adopting a Prohibition on Service to Low-Income Customers by Energy Service Companies( LI Prohibition ) Utilities will communicate to ESCOs serving Assistance Program Participant (APP) customers which accounts they are no longer eligible to serve; Utilities letters will be sent to ESCO APP customers informing them that they will be returned to utility service; ESCOs will be required to de-enroll any APP customer accounts identified by the utilities when existing contracts with such customers expire; ESCOs may petition the PSC for a waiver to serve APP customers under guaranteed savings program offers. LI Prohibition Implementation scheduled for 5/26/

41 Rates & Regulatory Update New York Update Case 12-M-0476 Prohibition Order Implementation Implementation Bulletins are posted on Distribution s web page at: Questions? 40

42 Rates & Regulatory Update New York Update Case 15-M In the Matter of Eligibility Criteria for Energy Services Companies. 2/23/2016 -PSC issues Order Resetting Retail Energy Markets and Establishing Further Process( Reset Order ); For gas customers with consumption less than 750 Mcf/year, the order extended the general provisions set forth in 12-M-0476 for APP Customers to all mass-market (residential and small non-residential) customers. 12/2/2016 PSC issues Notice of Evidentiary and Collaborative Tracks and Deadline for Initial Testimony and Exhibits. 2/15/2017 ALJ issues Ruling on Schedule and Procedure. Discovery Process is underway May 8, 2017 Pre-filed Direct Testimony and Exhibits June 5, 2017 Rebuttal Testimony and Exhibits June 26, 2017 Evidentiary Hearing 41

43 Rates & Regulatory Update New York Update Case No. 14-M-0224 Community Choice Aggregation (CCA) Programs 4/21/2016 -PSC issuesorder Authorizing Framework for Community Choice Aggregation Opt-Out Program The Order sets forth a process for local governments to follow if they form CCAs to procure energy supply services on behalf of customers within their boundaries; Customers not already receiving ESCO service would be enrolled with the CCAs by default unless they chose to opt out of the CCA to retain their current energy provider; Utilities will provide aggregated customer data/information to CCAs during the organizational phase; Utilities will provide more detailed customer data to CCAs whenthe enrollment phase commences. On 8/5/2016, Distribution submitted a tariff filing proposing a one-time $15 fee for each customer enrolled in CCA service. The effective date for the fee has been postponed to 7/1/

44 Rates & Regulatory Update New York Update Case 16-G-0257 Proceeding on Motion of the Commission as to the Rates, Charges, Rules and Regulations of National Fuel Gas Distribution Corporation for Gas Service ( NY Rate Case ) On 4/28/2016, Distribution filed a request with the New York State Public Service Commission ( Commission ) to increase utility base rates for the first time in more than 9 years. On 1/23/2017, the ALJ s Recommended Decision was issued. Briefing has been completed. An Order is anticipated on 4/20/2017 with new rates becoming effective on 4/28/

45 Rates & Regulatory Update New York Update Case 16-G-0257 NY Rate Case Transportation/Customer Choice Related Changes Tariff Reorganization SC-13D and SC-13M will become SC-13 and SC-18, respectively. SC-15 (Large Industrial Incentive Rate Transportation Rate) and SC-17 (Transportation Service for Customers Operating Cogeneration Facilities) will be eliminated. SC-1, SC-3, SC-11, SC-19 will retain current identity. Service Classifications Rates relocated to a new Statement of Rates and Surcharges section. 44

46 Rates & Regulatory Update New York Update New York GTOP GTOP Version 2.70 was filed on 2/8/2017 Demand Response Customer Communications. Producer lock up pressure procedures. Updates to existing tables/examples and changes addressing minor corrections/errata. GTOP Version 2.71 will be filed during late April 2017 Changes reflecting anticipated Rate Case order. Otherwise, no Distribution-initiated tariff changes affecting STBA service are anticipated, however. 45

47 Rates & Regulatory Update Pennsylvania Update 2017 Annual 1307(f) filing Status Update Exhibits were filed January Tariff and Testimony were filed February No major non-gas cost tariff initiatives are being bundled with 1307F filing. Filing Highlights proposed rate* changes: MMT from $ to $ SATC from $ to $ PSB from $ to $ SB from $ to $ RTC from $ to $ (weighted avg. demand cost of upstream capacity) DTR [Oct. $0.01 to $0.00, Nov. $0.43 to $0.38, Dec $0.66 to $0.63, Jan $0.41 to $0.48 & Feb $0.12 to $0.21] Implementation to be effective August 1, * Relative to currently effective rates. 46

48 Rates & Regulatory Update Pennsylvania Update Act of Jun. 23, 2016, P.L. 355, No. 47 Cl. 66 PUBLIC UTILITY CODE - 66 PA.C.S. ( Act 47 ) Elimination of the Migration Rider (e-factor) On 1/31/2017, Distribution filed to remove e-factor from rates charged to transportation customers. Sales customer rates will reflect e-factor immediately upon return to sales service. Natural gas distribution companies shall have the right to recover on a full and current basis all prudent and reasonable costs incurred to implement customer choice from retail natural gas customers or other entities as determined by the Commission. Recovery from retail natural gas customers shall be made pursuant to a reconcilable automatic adjustment clause under section

49 Pennsylvania GTOP Rates & Regulatory Update Pennsylvania Update GTOP Version 2.63 was filed on 9/2/2016 Revisions reflecting implementation of (f ). Update to Instant Connect enrollment procedure. The next GTOP filing is planned for late July Revisions reflecting implementation of (f ). No Distribution-initiated tariff changes affecting SATS or MMNGS services are anticipated, however 48

50 Rates & Regulatory Update Pennsylvania Update Capacity Assignment/ Use of Storage Seamless Moves& Instant Connects RMI SystemBalancing, Tolerances and Penalties Accelerated Switching Access to Local Production Creditworthiness Requirements Standard Offer Program Account Number Lookup Low Income Shopping Mechanisms CustomerEducation Migration Riders Purchase of Receivables Programs Disclosure Statements Electronic Data Protocols Joint NGDC NGS Bill Working Group meetings were completed in Account Number Access Mechanism available as of Jan Accelerated Switching is the last item remaining. 49

51 Rates & Regulatory Update Pennsylvania Update L Advance Notice of Proposed Rulemaking (ANOPR) -Rulemaking to Amend the Provisions of 52 Pa. Code, Chapter 59 Regulations Regarding Standards For Changing a Customer s Natural Gas Supplier. The ANOPR, issued on 12/23/2016, proposes an alignment of gas switching rules with Accelerated Switching rules applicable to the retail electric market, i.e. 3 business-day switching. Applies both to switches to NGS service and Supplier of Last Resort service. Combined with Last-In enrollment process, a customer could switch suppliers 21 times per month. Accelerated Switching works in the retail electric market where utilities have Advanced Metering Infrastructure ( AMI ). The Company estimates that implementation of Accelerated Switching would be very expensive. Based upon comparable costs at other gas utilities, the cost could be approximately $40 million, primarily for AMI implementation. On 2/21/2017, the Company filed comments in opposition to the ANOPR. The PUC is considering the comments filed by the industry and is likely to issue a Notice of Proposed Rulemaking later this year. 50

52 Questions? 51