Attached for your reference are the final agenda and presentation materials for this meeting.

Transcription

1 Announcement of National Fuel Gas Distribution Teleconference Teleconference Date: Monday, April 23, 2012 at 2:00 P.M. ET Posting Date 4/20/2012 Please be advised that National Fuel Gas Distribution Corporation (NFGDC) will host a teleconference on Monday, April 23, The teleconference will begin at 2:00 p.m. Attached for your reference are the final agenda and presentation materials for this meeting. Participants dialing into the conference: NOTES: 1. Dial the conference phone number ( or ) 2. Enter the Conference ID ( ) followed by the # key. 3. When prompted, state your name followed by the # key. Until the moderator joins the conference, the other parties will be placed on-hold. If the moderator doesn t join the conference, the participants will be disconnected from the call after seven minutes. Conference Shortcut Keys: (available to everyone in the conference) Press *6 to mute and unmute your line. Press *0 to connect to a conference operator for assistance. Volume Controls Press *4 to increase conference volume Press *7 to decrease conference volume Press *5 to increase your speaking volume Press *8 to decrease your speaking volume We look forward to your participation. Thank you. Joanne E. Maciok Gas Scheduling Operations Manager Transportation Services Department Privacy Policy Terms and Conditions Disclosures Regarding Forward-Looking Statements Search Home National Fuel Gas Company F:\trans\tss\ts\general web postings\spring 2012 Teleconference Letter_Agenda Posting.doc

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3 National Fuel Gas Distribution Corporation Spring 2012 Marketer/Supplier Teleconference Operational Update Presentation by: Dave Wolford April 23, 2012

4 Operational Update WINTER WTN = Warmer Than Normal CTN = Colder Than Normal BUFFALO NY ERIE PA November 25.6% WTN 25.0% WTN December 16.2% WTN 17.2% WTN January 14.8% WTN 15.2% WTN February 16.5% WTN 17.6% WTN March 43.4% WTN 44.6% WTN Overall 22.3% WTN 23.0% WTN 3

5 Operational Update Winter System Alerts: 2 Cold Weather January 3 January Warm Weather March OFOs None 4

6 70 Winter New York Normal Degree Days Actual Degree Days 60 System Alerts Cold Jan 3 Cold Jan Warm Mar Degre ee Days Nov-11 1-Dec-11 1-Jan-12 1-Feb-12 1-Mar

7 70 Winter Pennsylvania Normal Degree Days Actual Degree Days System Alerts Cold Jan 3 Cold Jan Warm Mar Degre ee Days Dec Nov-11 1-Jan-12 1-Feb-12 1-Mar

8 Transportation Customers STAND-ALONE CUSTOMERS MONTHLY (MMT) New York 2 Pennsylvania 0 DAILY (DMT) New York 0 Pennsylvania 72 TOTAL 74 AGGREGATION CUSTOMERS New York (STBA) 114,264 New York (DMT) 47 Pennsylvania (MMNGS) 2,530 Pennsylvania (SATS) 20,182 TOTAL 137,023 TOTAL NFGDC 137,097 7

9 120, ,000 80,000 60,000 40,000 20,000 0 National Fuel Gas Distribution NY STBA Enrollment Residential Non-Residential Total Number of Customers Nov-98 Nov-99 Nov-00 Nov-01 Nov-02 Nov-03 Nov-04 Nov-05 Nov-06 Nov-07 Nov-08 Nov-09 Nov-10 Nov-11 8

10 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 Jun-10 Jul-10 Aug-10 Oct-10 Nov-10 Sep-10 Dec-10 Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Apr-12 9

11 3,000 2,500 2,000 1,500 1, National Fuel Gas Distribution PA MMNGS Enrollment Number of Customers Sep-06 Jan-07 May-07 Sep-07 Jan-08 May-08 Sep-08 Jan-09 May-09 Sep-09 Jan-10 May-10 Sep-10 Jan-11 May-11 Sep-11 Jan-12 10

12 NEW YORK 12 Month Totals (Through January 2012) Throughput Transported BCF

13 PENNSYLVANIA 12 Month Totals (Through January 2012) Throughput Transported BCF

14 NY TRANSPORTATION PERCENTAGE OF 12 MONTH DELIVERIES 60% 50% 45.7% 48.3% 49.1% 49.1% 49.9% 50.4% 40% 30% 20% 10% 0% Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 13

15 PA TRANSPORTATION PERCENTAGE OF 12 MONTH DELIVERIES 60% 50% 46.6% 45.6% 43.7% 42.2% 46.2% 50.8% 40% 30% 20% 10% 0% Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 14

16 NFGDC TRANSPORTATION PERCENTAGE OF 12 MONTH DELIVERIES 60% 50% 46.0% 47.4% 47.3% 46.9% 48.7% 50.5% 40% 30% 20% 10% 0% Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 15

17 Operational Update PA Tariff Filing - Docket R Order Adopted April 12, 2012 Mandatory Month End Cash Out for SATS and MMNGS Programs SATS Access to Local Production Changes to Month End Storage Inventory Level Requirements 16

18 Operational Update Pennsylvania Cash Out Mechanism Mandatory cash out of MMNGS and SATS imbalances will be effective for May 2012 transportation month March final imbalances will roll over to May per current procedures April final imbalances will roll over to June per current procedures May post-trading imbalances will be cashed out Imbalance resolution will be fully transitioned to cash out by July 2012 PA Cash out program is fundamentally identical to NY program Safe Harbors PA cash out rate will be based on Columbia Appalachian Index Cash out tiers Month End Imbalance Resolution - Cash Out Examples:

19 Operational Update SATS Access To Local Production Up to 105% of the PDQ for daily and monthly metered Production Pools may be scheduled to SATS Market Pools. NFGDC will consider volumes scheduled to SATS pools from daily and monthly metered production pools as delivered for daily city gate balancing purposes 18

20 National Fuel Gas Distribution Corporation Imbalance Management Market Pool and Production Pool operators are responsible for monitoring actual flowing volumes and adjusting DDQs and PDQs. 19

21 National Fuel Gas Distribution Corporation NFGDC provides a full range of business tools and support services: NFGDC Website: Operating Procedures Manuals GTOP Transportation Scheduling System TSS Training Help Desks Scheduling: Billing: After Hours Scheduling Support Bi-Weekly Operational Teleconferences 20

22 Questions? 21

23 National Fuel Gas Distribution Corporation Spring 2012 Marketer/Supplier Teleconference Rates & Regulatory Update Presentation by: Mike Novak April 23, 2012

24 Rates & Regulatory Update Federal Regulatory Update PA Regulatory Update NY Regulatory Update NY Sales Tax PA Licensing 23

25 Federal Regulatory Update RP12-88 NFGSC Rate Case Settlement discussions underway Potential for Settlement-in-Principle before May 1 st. Motion Rates, absent Settlement, will be in effect May 1, 2012 subject to refund Procedural Timeline 6/ 7/2012 Staff and Intervenor Direct and Answering Testimony & Exhibits 7/19/2012 Company Answering Testimony & Exhibits on NGA section 5 issues; Staff and Intervenor Cross-Answering Testimony & Exhibits 8/23/2012 Company Rebuttal Testimony & Exhibits on NGA section 4 issues; Staff and Intervenor Exhibits on NGA section 4 issues; Staff and Intervenor Rebuttal Testimony on NGA section 5 issues 9/5/2012 Final Discovery Requests 9/10/2012 Joint Statement of Issues, Joint Witness List, and Stipulations 9/19/2012 Discovery Ends 9/24/2012 Hearing commences 11/13/2012 Initial Briefs 12/10/2012 Reply Briefs 2/18/2013 Initial Decision 24

26 Federal Regulatory Update RP TGP Rate Case Settlement approved by FERC on 12/5/2011 TGP has issued Rate Refunds Distribution plans to flow refunds through to customers through delivery rates New York plan filed on 2/10/2012 Distribution is proposing to allocate a portion of the refund to its Area Development Program with the remainder flowing through to customers. Pennsylvania 1307f matter Should begin 8/1/2012 refund to be completed over 12 months RP TGP Scheduling Priorities Filing Distribution is supporting TGP s filing because it enhances delivery rights for gas purchased from secondary-in-path receipt points, including pools, to primary delivery points. 25

27 PA Regulatory Update 1307F Status Update Data, Exhibits and Testimony filed January 2012 Settlement Discussions Underway Settlement-In-Principle No major non-gas cost tariff initiatives are being bundled with 1307F filing Implementation to be effective August 1, 2012 SEARCH Update Docket No. L (Natural Gas Distribution Company Business Practices) has expired but it is anticipated that the PUC will propose a Revised Rulemaking in the near future. 26

28 PA Regulatory Update Natural Gas Distribution Companies and the Promotion of Competitive Retail Markets - Docket No. L Revised Final Rulemaking Order published in the Pa Bulletin on April 14, 2012 and is effective. Development of a Gas Procurement Charge (GPC) as a part of the Price-to- Compare (PTC). A Merchant Function Charge (MFC) separate from the Purchase of Receivables (POR) program. Rules for voluntary POR programs including a transition plan for existing POR programs. Capacity release rules. Compliance Filings during 2012 schedule to be determined. Marketing and Sales Practices for the Retail Residential Energy Market Docket No. L Proposed Rulemaking Order published in the Pa Bulletin on October 22, Comment due date was December 21,

29 PA Regulatory Update PA Tariff Filing - Docket R Order Adopted April 12, 2012 (Order effective 4/13/2012) Mandatory Month End Cash Out for SATS and MMNGS Programs Changes to Month End Storage Inventory Level Requirements SATS Access to Local Production PA GTOP filing Anticipated August 2012 filing Coincides with 1307f implementation Other than L compliance filing, no substantive transportation/customer choice program oriented PA Tariff filings are planned during

30 NY Regulatory Update NY GTOP filing Anticipated June 2012 filing No substantive transportation/customer choice program oriented NY Tariff filings are planned during

31 NY Sales Tax Update Prospective Changes As discussed during the Fall 2011 Teleconference, plans to rely upon Marketer sales tax information, including exemptions, for application of sales tax to Marketer supply charges for billing purposes are still under development. Changes will be communicated via , web postings and GTOP changes. Timing is not yet set this is a complex matter. 30

32 NY Sales Tax Update Customer Classification Issue There are differences between Tariff rules and New York State Department of Taxation and Finance rules. As a result: Distribution and Marketers may wish to classify customers differently. The Company s classification will follow the Tariff. New forms and procedures relying upon Customer provided information will soon be available. 31

33 Issue: PA Licensing Some Suppliers have enrolled Customers in classifications for which they are not licensed to serve under Pennsylvania Rules & Regulations Preferred Corrective Actions: Suppliers may amend their licenses Suppliers may shed applicable Customers 32

34 Company Actions: PA Licensing Business systems now consider licensing information when processing enrollments. If a Supplier believes a Customer has been misclassified, the Company will evaluate updated information received from the Customer. The Tariff will be used to determine whether the Customer should be placed in a different classification. Procedures will be formalized through web postings and/or GTOP filings. 33

35 Questions? 34

36 National Fuel Gas Distribution Corporation Spring 2012 Marketer/Supplier Teleconference Gas Supply Update Presentation by: Robert Michalski April 23, 2012

37 Discussion Topics Capacity Issues Marketer provided, NFGDC released Intermediate and Upstream Rate case impact National Fuel Gas Supply Corporation Released ESS capacity inventory requirements Split Weekend DDQ/Scheduling 36

38 STBA service New York Capacity to serve STBA customers Grandfathered Upstream Transmission Capacity GUTC Grandfathered Intermediate Transmission Capacity GITC NFGDC local production Mandatory Upstream Transmission Capacity MUTC 37

39 STBA NY GUTC, GITC July 2012 capacity demonstration GUTC capped at 84,607 Dth/day GITC capped at 40,745 Dth/day GUTC must deliver to primary EFT receipt point(s). Contact Gas Supply Administration, Ken McAvoy , to verify EFT capacity available for release. 38

40 STBA NY MUTC : Capacity Mix/Rates April % TGP (FT-A Z1-Z4) Discounted release rate from NFGDC $ /Dth/month Compared to maximum reservation rate $15.626/Dth/month 14% ESS (MSQ/MDWQ) Released at maximum reservation rate MSQ - $0.0432/Dth/month MDWQ - $2.1345/Dth/month 39

41 NFGSC Capacity Rates Rate Case as filed reservation rates per Dth per month: EFT April 2012 $3.5570, May 2012 $ ESS - Capacity April 2012 $0.0432, May 2012 $ ESS -Delivery April 2012 $2.1345, May 2012 $ Settlement rates, if achieved and approved, may be different. 40

42 STBA NY MUTC : Capacity Mix/Rates May 2012 NFGSC Rate Case Impact MUTC release rate in aggregate does not change because NFGDC s Weighted Average Cost of Upstream Capacity increases by less than the 5% minimum threshold to recalculate MUTC release rates. ESS release rate will increase to the as filed maximum. TGP release rate will decrease to keep MUTC aggregate release rate unchanged. If a Settlement is approved, rates will adjust. 41

43 STBA NY MUTC : Capacity Mix/Rates May 2012: 86% TGP (FT-A Z1-Z4) Revised discounted release rate: $ /Dth/month Compared to maximum reservation rate: $15.626/Dth/month 14% ESS (MSQ/MDWQ) Released at maximum reservation rate (as filed): MSQ - $0.0470/Dth/month MDWQ - $3.0389/Dth/month 42

44 NFGSC Capacity Fuel Retention Rate Case as filed proposed no change to fuel retention. As of April 2012: EFT delivered to city-gate 1.4% ESS Injection and Withdrawal 1.4% If a Settlement in the rate case is achieved and approved, fuel retention rates may be different. 43

45 TGP Capacity Fuel Retention TGP Rate Case Settlement provides a quarterly true-up of fuel retained to actual fuel usage with an annual adjustment each April 1 st. FT-A Z1-Z4 fuel retention November % April % 44

46 NY & PA: ESS Inventory Requirements Month Minimum SOM Minimum EOM General Capacity Issues April 0% 0% Marketer provided, NFGDC released May 0% 12% Intermediate and Upstream June 12% 29% July 29% 46% Rate case impacts: August 46% 63% Tennessee Gas Pipeline September 63% 80% October 80% 95% National Fuel Gas Supply Corporation November 95% 90% Released ESS capacity inventory requirements December 90% 75% January 75% 50% February 50% 28% March 28% 0% 45

47 SATS service -Pennsylvania Released Transmission Capacity ( RTC ). RTC mix and release rates are reset each August 1st in NFGDC s 1307(f) proceeding or sooner if appropriate. August PROPOSED RTC will serve a 62 Degree Day Requirement Capacity Retained by NFGDC 12 DD 46

48 RTC: Capacity Mix/Rates August 2012 PROPOSED 39% TGP (FT-A Z1-Z4) Discounted release rate from NFGDC $ /Dth/month Compared to maximum reservation rate $ /Dth/month 61% ESS (MSQ/MDWQ) Released at maximum reservation rate 47

49 RTC Comparable Capacity By October 1, Marketers may identify their own comparable upstream capacity to serve their customers in lieu of taking NFGDC s RTC. If acceptable to NFGDC and the Pennsylvania Public Utility Commission, such capacity could be utilized beginning the following October. For details and timeline refer to section D of NFGDC s GTOP. 48

50 Daily Delivery Quantity ( DDQ ) Averaging NY and PA 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 forecast to be 15 degrees 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. 49

51 Example - Split Weekend Gas Scheduling Thursday June 2012 July Thursday Friday Saturday Sunday Monday DDQs posted for Friday/Saturday and for Sunday/Monday Gas is traded for Friday/Saturday Friday Gas is traded for Sunday/Monday 50

52 Questions? 51