National Fuel Gas Distribution Corporation Fall 2017 Marketer/Supplier Teleconference Thursday, October 19, 2017

Transcription

1 Gas Distribution Corporation Fall 2017 Marketer/Supplier Teleconference Thursday, October 19, 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 Fall 2017 Marketer/Supplier Teleconference Operational Update Presentation by: Dave Wolford October 19, 2017 NFGDC Fall 2017 Marketer Teleconference 1

3 Transportation Customers October 2017 STAND-ALONE CUSTOMERS MONTHLY (MMT) DAILY (DMT) AGGREGATION CUSTOMERS New York 1 Pennsylvania 0 New York 0 Pennsylvania 77 TOTAL 78 New York (STBA) 101,155 New York (DMT) 36 Pennsylvania (MMNGS) 3,269 Pennsylvania (SATS) 27,338 TOTAL 131,798 TOTAL NFGDC 131,876 NFGDC Fall 2017 Marketer Teleconference 2

4 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) NFGDC Fall 2017 Marketer Teleconference 3

5 New York & Pennsylvania Operations Meet daily delivery requirements (DDQs) to serve market Manage storage inventories Required end of month storage inventory percentages are 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 NFGDC Fall 2017 Marketer Teleconference 4

6 New York & Pennsylvania Operations Daily Delivery Quantities (DDQs) DDQsare customer usage estimates based on usage history, weather forecasts, actual measurement Production Daily Quantities (PDQs) PDQsare estimates of local production based on production volume history Market Pool and Production Pool operators are responsible for monitoring actual flowing volumes and adjusting DDQsand PDQsvia TSS NFGDC Fall 2017 Marketer Teleconference 5

7 Pipeline Critical Notices are Important NFGDC reminds ESCO s to consider their business and regularly review the appropriate pipeline notices. Subscribe to receive s of critical notices from each pipeline that they operate on. Review & assess potential impacts on their business Contact the appropriate pipeline for notice clarification Contact NFGDC for assistance To receive critical notice s directly from: NFG Supply- request to WilliamsT@natfuel.com with Critical Notice as the subject. TGP- Update DART user setting in Business Preferences to receive notifications. NFGDC Fall 2017 Marketer Teleconference 6

8 Pennsylvania DMT Operations REMINDER: National Fuel provides PA DMT pool operators, and requesting customers, with official notification of instances of missing or incomplete customer telemetered readings 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 NFGDC Fall 2017 Marketer Teleconference 7

9 SYSTEM MAINTENANCE ORDERS * TO MAINTAIN SYSTEM OPERATIONAL INTEGRITY * SYSTEM ALERT OPERATIONAL FLOW ORDER UNAUTHORIZED OVERRUN CURTAILMENT NFGDC Fall 2017 Marketer Teleconference 8

10 Questions? NFGDC Fall 2017 Marketer Teleconference 9

11 National Fuel Gas Distribution Corporation Fall 2017 Marketer/Supplier Teleconference Capacity Update Presentation by: Bob Michalski October 19, 2017 NFGDC Fall 2017 Marketer Teleconference 10

12 Discussion Topics NY STBA -Mandatory Upstream Transmission Capacity (MUTC) and Intermediate ESS PA SATS -Released Transmission Capacity (RTC) and Intermediate ESS Split Weekend/Holiday DDQ Averaging Production Pool Measurement Changes NFGDC Fall 2017 Marketer Teleconference 11

13 NY STBA Capacity (Adjusted May 2017) Serves Requirements for up to 62 HDD: 67% MUTC, released at weighted average cost of capacity (WACOC) 30%NFGSC ESS, released at maximum rate 70%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 NFGDC Fall 2017 Marketer Teleconference 12

14 NY STBA Capacity Upstream Capacity: 67% Intermediate Capacity: 33% 70% TGP Capacity 30% ESS Capacity ESS Capacity NFGSC EFT Capacity NFGDC transportation Enduser NFGDC Local Production NFGDC Fall 2017 Marketer Teleconference 13

15 NY MUTC WACOC & Release Rates Date WACOC ESS Max 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%) Apr 2018* $ $ $ (20%) * Forecasted Rates NFGDC Fall 2017 Marketer Teleconference 14

16 PA SATS Capacity Serves Requirements for up to 62 HDD Capacity mix filed for August 2017: 47% RTC, TGP Zone 4 Sharon released at WACOC 53% Intermediate ESS released at max. rate NFGDC Fall 2017 Marketer Teleconference 15

17 PA SATS Capacity NFGDC Fall 2017 Marketer Teleconference 16

18 PA SATS TGP Release Rate Date TGP Release Rate/Dth* Change Since Aug 2012 Aug 2012 $ Aug 2013 $ (7%) Aug 2014 $ (21%) Aug 2015 $ (32%) Aug 2016 $ (36%) Aug 2017** $9.5746** (36%) *PA TGP Release Rate = PA WACOC Rate. ** 1307(f) Compliance Rate/Dth NFGDC Fall 2017 Marketer Teleconference 17

19 NFGDC Fall 2017 Marketer Teleconference 18

20 Split Weekend/Holiday DDQ Averaging Dec 2017 Jan Wed Thu Fri Sat Sun Mon Tue Wed: Notice given if DDQs will not be averaged Thu: DDQs posted for Fri-Sun (Dec)& Mon-Tue (Jan) Gas trades on ICE for Fri-Sun Fri: Gas trades on ICE for Mon-Tue NFGDC Fall 2017 Marketer Teleconference 19

21 PRODUCTION POOL MEASUREMENT CHANGES Producer meter readings are the basis of production pool allocations and ultimately impact imbalance resolution Expected early local production meter readings system upgrade Producers will execute new agreements to use the new system A new web site URL will replace the current URL NFGDC will post instructions, new agreement forms, etc. on its web site and in the NY and PA GTOPs Stay tuned! NFGDC Fall 2017 Marketer Teleconference 20

22 Questions? NFGDC Fall 2017 Marketer Teleconference 21

23 National Fuel Gas Distribution Corporation Fall 2017 Marketer/Supplier Teleconference Rates & Regulatory Update Presentation by: Michael Novak October 19, 2017 NFGDC Fall 2017 Marketer Teleconference 22

24 Rates & Regulatory Update Federal Update Pipeline Rate Events RP Empire Pipeline, Inc. ( Empire ) The Settlement in RP provided for a final Empire Connector Reservation Rate reduction (from $7.875 to $7.380) which went into effect 10/1/2017. NFGDC Fall 2017 Marketer Teleconference 23

25 Rates & Regulatory Update Federal Update Pipeline Rate Events Several pipelines have filed various tracker filings with changes to become effective 11/1/2017; most of these deal with fuel retention or pipeline safety/greenhouse gas surcharges. RP88-67 et al. Texas Eastern PCB Tracker Extension 10 year extension; true-up of balance from initial 25 years. A tracker surcharge filing is anticipated which will increase rates effective 12/1/2017. NFGDC Fall 2017 Marketer Teleconference 24

26 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/ 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. NFGDC Fall 2017 Marketer Teleconference 25

27 Rates & Regulatory Update New York Update Case 12-M-0476 Prohibition Order Implementation As a consequence of the Appellate Division s 9/1/2017 denial of a motion to stay the LI Order, a TRO which restrained LI Prohibition Implementation was lifted. Pursuant to Procedural Order Extending Deadlines, issued 9/14/2017, within 30 days of receiving the communication from the electric and gas distribution utilities identifying those customers the ESCO is no longer eligible to serve, i.e. the ESCO s APP customers, ESCOs without waivers should deenroll such customer accounts, provided that existing contracts will continue until their expiration. Distribution provided the above described communication on 9/17/2017. NFGDC Fall 2017 Marketer Teleconference 26

28 Rates & Regulatory Update New York Update Case 12-M-0476 Prohibition Order Implementation Implementation Bulletins are posted on Distribution s web page at: Questions? NFGDC Fall 2017 Marketer Teleconference 27

29 Rates & Regulatory Update New York Update Case 15-M In the Matter of Eligibility Criteria for Energy Services Companies. 2/23/ 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. The Discovery Process is ongoing subject to the schedule below: September 15, 2017 Direct Testimony and Exhibits October 27, 2017 Rebuttal Testimony and Exhibits November 29, 2017 Evidentiary Hearing NFGDC Fall 2017 Marketer Teleconference 28

30 Rates & Regulatory Update New York Update Case No. 14-M-0224 Community Choice Aggregation (CCA) Programs 4/21/2016 -PSC issues Order 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 when the 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 by the Commission to 12/1/2017. NFGDC Fall 2017 Marketer Teleconference 29

31 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. A Rate Order was issued on 4/20/2017. New rates became effective on 5/1/2017. Distribution has appealed certain provisions of the Rate Order through the New York court system. These efforts do not impact ongoing operations. NFGDC Fall 2017 Marketer Teleconference 30

32 Rates & Regulatory Update New York Update New York GTOP GTOP Version 2.72 was filed on 5/31/2017 Demand Response Customer Communications. GTOP Version 2.73 was filed on 6/27/2017 Personnel/contact information updates. Revised descriptions of liquid trading points. Clarification of enrollment procedures and timing. Clarification of Transportation Service Agreement procedures for large non-residential customer. Updated telemetering cost estimates. The next GTOP filing is planned for Spring Updates to Production Pool Operator Procedures & Contracts/Forms. Updates to Storage Inventory Requirements. Otherwise, no Distribution-initiated tariff changes affecting STBA service are anticipated, however. NFGDC Fall 2017 Marketer Teleconference 31

33 Rates & Regulatory Update Pennsylvania Update 2018 Annual 1307(f) filing Gas cost recovery for Sales and Transportation Service December 29, 2017 Exhibits filed. February 1, 2018 Tariff, Testimony and Additional Exhibits filed To intervene in the filing send a letter or request form to: Pennsylvania Public Utility Commission Post Office Box 3265 Harrisburg, PA Implementation to be effective August 1, 2018 NFGDC Fall 2017 Marketer Teleconference 32

34 Rates & Regulatory Update Pennsylvania Update Pennsylvania GTOP GTOP Version 2.70 was filed on 7/31/2017 Revisions reflecting implementation of (f ), e.g. Upstream Capacity Cost Analysis & Capacity Allocation example. Clarification on the applicability of Priority Standby Service. Removal of obsolete language pertaining to imbalance nominations. Updates to telemetering equipment costs estimates. The next GTOP filing is planned for late Spring Updates to Production Pool Operator Procedures & Contracts/Forms. Updates to Storage Inventory Requirements. No Distribution-initiated tariff changes affecting SATS or MMNGS services are anticipated, however NFGDC Fall 2017 Marketer Teleconference 33

35 Rates & Regulatory Update Pennsylvania Update Capacity Assignment/ Use of Storage Seamless Moves& Instant Connects Natural Gas Retail Markets Investigation (RMI) SystemBalancing, Tolerances and Penalties Accelerated Switching Standard Offer Program Account Number Lookup Mechanisms Access to Local Production Creditworthiness Requirements Low Income Shopping CustomerEducation Migration Riders Purchase of Receivables Programs Disclosure Statements Electronic Data Protocols Joint NGDC NGS Bill NFGDC Fall 2017 Marketer Teleconference 34

36 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. Accelerated Switching works in the retail electric market where utilities have Advanced Metering Infrastructure ( AMI ). Based upon comparable costs at other gas utilities, the cost for Distribution to implement accelerated switching could be approximately $40 million, primarily for AMI implementation. In its comments filed on 2/21/2017, the Company expressed its opposition to the ANOPR proposal and proposed alternate approaches. The PUC sought additional comment in June 2017 and may issue a Notice of Proposed Rulemaking later this year. NFGDC Fall 2017 Marketer Teleconference 35

37 Rates & Regulatory Update Pennsylvania Update L Advance Notice of Proposed Rulemaking (ANOPR) to solicit comments about amending/adding to regulations addressing the release, assignment and transfer of capacity among Natural Gas Distribution Companies (NGDCs) and Natural Gas Suppliers (NGSs). Comment is sought upon four Commission proposals: 1. Uniform Capacity Costs For All Customers Capacity released to NGSs at zero rate with cost recovery from customers via a new delivery charge 2. Capacity Assignment From All Assets Virtual Storage 3. Daily Imbalance Trading Daily post-nomination trading of city gate imbalances 4. Penalty Structure During Non-peak Times Lower floor rate for city gate imbalances April - October NFGDC Fall 2017 Marketer Teleconference 36

38 Rates & Regulatory Update Pennsylvania Update L Advance Notice of Proposed Rulemaking (ANOPR) cont. Virtual Storage Proposed Regulatory Text: (2) A release of an NGDC s pipeline and storage capacity assets must follow the customers for which the NGDC has procured the capacity, subject only to the NGDC s valid system reliability and Federal Energy Regulatory Commission constraints. When release must be restricted due to reliability or other constraints, an NGDC shall develop a mechanism that provides proxy or virtual access to the assets. Potential Structural Changes to Distribution s current storage release program: Distribution does not release its Columbia FSS capacity because of 1) its reliability role for peaking purposes and 2) it comprises only 6% of the storage capacity available. A slice of the pie storage release would be administratively cumbersome for both Distribution and NGSs In part, the capacity is used to serve load pockets. OFOs, System Maintenance Orders and System Alerts as well as different inventory level requirements would be necessary to replicate the reliability role attained through Distribution s current utilization as a system asset. Generally, Columbia FSS must be filled using Columbia Appalachian Pool supplies, i.e. it cannot be filled from TGP 200 and 300 line pooling points. NFGDC Fall 2017 Marketer Teleconference 37

39 Rates & Regulatory Update Pennsylvania Update L Advance Notice of Proposed Rulemaking (ANOPR) cont. Virtual Storage Proposed Regulatory Text: (2) A release of an NGDC s pipeline and storage capacity assets must follow the customers for which the NGDC has procured the capacity, subject only to the NGDC s valid system reliability and Federal Energy Regulatory Commission constraints. When release must be restricted due to reliability or other constraints, an NGDC shall develop a mechanism that provides proxy or virtual access to the assets. Potential Structural Changes to Distribution s current storage release program: To provide virtual access to all storage assets, Distribution is studying virtual access programs such as UGI s MBSQ service as a starting point. Instead of using FERC s capacity release program to assign storage and associated transmission capacity to NGSs, Distribution would retain this capacity to fill storage during the injection cycle. In place of current NFGSC ESS storage withdrawals, NGSs would purchase Virtual Storage Sales (VSS) gas from an entitlement determined based upon projected customer load for November 1. Monthly minimum and maximum purchase obligations and limits would ensure that the underlying storage assets were utilized in a manner consistent with the storage assets used to serve customers supplied by Distribution. OFO-like must-take instructions obligating NGSs to purchase VSS would be issued when required. NFGDC Fall 2017 Marketer Teleconference 38

40 Rates & Regulatory Update Pennsylvania Update L Advance Notice of Proposed Rulemaking (ANOPR) cont. Virtual Storage Proposed Regulatory Text: (2) A release of an NGDC s pipeline and storage capacity assets must follow the customers for which the NGDC has procured the capacity, subject only to the NGDC s valid system reliability and Federal Energy Regulatory Commission constraints. When release must be restricted due to reliability or other constraints, an NGDC shall develop a mechanism that provides proxy or virtual access to the assets. Potential Distribution Virtual Storage Sales program: In general, the design would attempt to translate the operating rules applicable to the current storage program. VSS would utilize both Columbia FSS and NFG Supply storage thereby providing virtual access. VSS would be on the utility side of the city gate; current access to the interstate pipeline grid and other markets provided through released storage capacity would not be available. VSS would be nominated via TSS; the preliminary thought is to use production pool logic as a template. TSS would need to be enhanced to include a VSS nomination platform and provide corresponding reports to NGSs. While the ANOPR proposal for virtual access may make sense in other PA NGDC markets, it s a step backward for Distribution s market. The Company s preference is to keep its current storage capacity release program in place. NFGDC Fall 2017 Marketer Teleconference 39

41 Rates & Regulatory Update Pennsylvania Update L Advance Notice of Proposed Rulemaking (ANOPR) cont. The ANOPR is available from the PUC web site at: Comments are due November 2, 2017 Written comments may be filed with: Pennsylvania Public Utility Commission Attn: Secretary P.O. Box 3265 Harrisburg, PA Comments may also be filed electronically through the Commission s e-file System: NFGDC Fall 2017 Marketer Teleconference 40

42 Questions? NFGDC Fall 2017 Marketer Teleconference 41