Meeting Power Plant Needs

Transcription

1 Meeting Power Plant Needs Anders Johnson Tennessee Gas Pipeline, El Paso Corporation Gas Control & Planning Gas/Electric Partnership 31 January 2008 Houston, Texas

2 Cautionary Statement Regarding Forward-Looking Statements This presentation includes forward-looking statements and projections, made in reliance on the safe harbor provisions of the Private Securities Litigation Reform Act of The company has made every reasonable effort to ensure that the information and assumptions on which these statements and projections are based are current, reasonable, and complete. However, a variety of factors could cause actual results to differ materially from the projections, anticipated results or other expectations expressed in this presentation, including, without limitation, the ability to implement and achieve our objectives in the long-range plan; changes in commodity prices for oil, natural gas, and power; inability to realize anticipated synergies and cost savings associated with restructurings and divestitures on a timely basis; our ability to obtain necessary governmental approvals for proposed pipeline projects and our ability to successfully construct and operate such projects; the risks associated with recontracting of transportation commitments by our pipelines; regulatory uncertainties associated with pipeline rate cases; general economic and weather conditions in geographic regions or markets served by El Paso Corporation and its affiliates, or where operations of the company and its affiliates are located; the uncertainties associated with governmental regulation; difficulty in integration of the operations of previously acquired companies, competition, and other factors described in the company s (and its affiliates ) Securities and Exchange Commission filings. While the company makes these statements and projections in good faith, neither the company nor its management can guarantee that anticipated future results will be achieved. Reference must be made to those filings for additional important factors that may affect actual results. The company assumes no obligation to publicly update or revise any forward-looking statements made herein or any other forward-looking statements made by the company, whether as a result of new information, future events, or otherwise.

3 What do Power Plants Wish for? To take gas where they want it When they need it At the pressure they need it at: >525 psig? Minimum fuel charge, 0.5% - 5% Producers deliver the gas to the pipeline To take their gas regardless of scheduled ISOs provide them with advanced notice

4 Pipeline Goals Deliver gas where the market needs it at the desired pressure in safe and reliable manner Provide flexibility where it is available Comply with all laws and regulations Earn a just and reasonable rate of return Improve communication

5 TGP s Pipeline Facts ~14,000 miles of pipeline Reticulated system with mainlines in the 24 to 36 diameter range Natural gas travels approximately 15 mph Linepack typically operates around 12 BCF Load swings can be in excess of 1 BCF/d Over one million horsepower Over 25,000 MW of power plant load connected capable of drawing ~5 Bcf/d

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7 Real-time Compressor Station Suction and Discharge Pressures Discharge Suction

8 What do Power Plants Wish for? To take gas where they want it When they need it At the pressure they need it at Producers deliver the gas to the pipeline To take their gas regardless of scheduled ISOs provide them with advanced notice

9 What do Power Plants Get?

10 Lockport Energy Associates LP CoGen ,000 Zone 5 MW DTH 1, ,000 Project Orange CoGen 98 20,000 Selkirk Cogen CoGen , PDC Berkshire Power CC ,000 Pittsfield Generating Plant CoGen , Masspower CC ,000 O.S.P. CC ,000 MAINE ZONE 6 NEPOOL Granite Ridge CC , Zone 6 MW DTH 3, , C A NYPP NEW YORK PENNSYLVANIA PJM Bethlehem Energy Center CC , RISE CC , Millennium Power CC ,000 Blackstone CC ,000 ZONE 5 MARYLAND

11 Order No. 698 Issued June 25 th 2007 Requires the establishment of communication protocols between interstate pipelines and power plant operators Pipeline is required to implement and demonstrate compliance by November 1, 2007

12 Snapshot Summer Linepack Swing

13 Power Plant Takeaways (noon) Current Flow Rate Accumulated Nominated (1000s Dth)

14 North System Linepack

15 Power Plant Takeaway (2:30 pm) (1000s) Dth Current Flow Rate Accumulated Nominated

16 Total TGP Linepack

17 North System Linepack

18 Need to Know Leaving too much gas on the pipe can be as problematic as taking too much gas TGP s mainline system was designed on even hourly takes Cycling machinery reduces its life TGP strives to provide safe and reliable service and depends on accurate information from the scheduling system to ensure gas arrives at the contracted location

19 Goals Meet the Market needs Continue to deliver reliable service Provide flexibility where it is available Improve communication Comply with all laws and regulations Comply with FERC Order 698

20 To Give Power Plants What they want - we need: More Storage More Efficient compression Broader operating ranges More Intelligent compression Pipelines design to handle greater swings Booster Compressors (where applicable) ISOs provide them with advanced notice

21 Thank you Questions?

22 Power Plant Profile Request (MS Excel data input sheet) Anticipated burn enables the pipeline to plan linepack

23 Power Plant Profile Request continued Effective Gas Day PPO Burn Profile TGP Contacts