Philadelphia Gas Works

Transcription

1 Philadelphia Gas Works REQUEST FOR PROPOSALS For NATURAL GAS STORAGE ASSET MANAGEMENT RFP NO April 1, 2014 through March 31, 2015 The Philadelphia Gas Works ( PGW ) is requesting proposals for asset management of any one or all of its storages for the term of April 1, 2014 through March 31, The objective of this RFP is to select an asset manager to refill and operate said storages in a more efficient manner for the benefit of PGW s firm ratepayers, if possible. These storages, specifications for which are attached hereto, interconnect with the two interstate pipelines (Transco and Tetco) that interconnect with the PGW territory. Responses to this RFP are due no later than 5:00 pm Eastern Time on February 26, PGW will promptly begin (i) negotiations with selected proposers and (ii) obtaining regulatory approvals (if required by the proposed transaction structure), with the objective of asset management services commencing April 1, All respondents need to have a signed NAESB agreement with PGW or be willing to execute a NAESB agreement with PGW. All respondents should include any proposed special provisions that amend the NAESB agreement to reflect the proposed transaction. For your convenience, we will accept the proposal by mail, fax or . Please address your proposal to: Philadelphia Gas Works Attention: Gas Acquisitions West Montgomery Avenue Philadelphia, PA Facsimile: (215) Nicholas.LaPergola@pgworks.com Should you have any questions, please contact Nicholas LaPergola at (215) or Laraine Andrews at (215)

2 General Conditions: 1. Each proposal may include separate and distinct proposals for each identified asset and should indicate whether the proposals for storage capacity and/or transportation capacity may be separately considered or only as a package. 2. Each proposal must conform to all of the rules and regulations of the Federal Energy Regulatory Commission and the relevant tariff provisions of the applicable interstate pipeline. 3. Imbalances, penalties, excess injection/withdrawal charges or similar charges incurred during the term of the asset management agreement shall be the sole responsibility of the selected asset manager. 4. The transaction described herein is subject to (i) receipt of required approvals (including, without limitation, from PGW s Senior Management) and (ii) negotiation and execution of definitive agreements containing all appropriate provisions, including those relating to damages and indemnification. 5. PGW reserves the right, at any time prior to execution of an agreement with the selected proposer, to exercise all or any of the following rights and options, which rights and options PGW may exercise to the extent that PGW, in its sole discretion, deems to be in its best interests: To negotiate unacceptable provisions incorporated within an otherwise acceptable proposal submitted in response to this RFP; To reject any proposal that in the sole discretion of PGW is not in the best interest of PGW; To negotiate with multiple respondents prior to or after proposer notification; To cancel this RFP with or without issuing another RFP; and To request that some or all of the proposers modify their proposals or provide additional information following evaluation by PGW. 6. In accordance with The Philadelphia Code Title 17 Chapter , persons and entities who wish to provide goods and services to PGW must provide certain information about contributions they have made to elected City officials or candidates for City offices. All Proposers must therefore complete this Attachment and include such completed Attachment with their proposal. Please note that the selected. Proposer will be required to update such disclosure during the term of its agreement with PGW and for one year thereafter. 7. Any information provided to PGW in connection with this RFP may not be exempt from disclosure under the Philadelphia Home Rule Charter and/or the Commonwealth Right to Know Act.

3 Transcontinental Gas Pipeline Supply Specifications Storages: PGW currently has five storages on the TGPL system, two of these storages are section 7C while the other three storages are part 284G. Attachment A describes the type of storage, each storage capacity, each storage ratcheted injection quantity and ratcheted withdrawal quantity based on the current pipeline tariff regulations. All associated capacity and demand charges are attached. Pricing: PGW anticipates receiving a discount to the first of the month index of all natural gas injected into these storages as well as a sharing of any profits accumulated through the selected proposer s utilization of such assets. Firm transportation: PGW holds firm long line transportation on the TGPL system which can be included in the asset management agreement if requested. The long line capacity can be prorated along TGPL s historic telescopic pooling points. Credit Worthiness: All respondents must submit to a creditworthiness review by PGW. Operating Season: PGW defines its operating season from November through April. Because PGW requires these storage assets to meet its winter operation needs, it will provide a monthly volume required for its usage for each month. If within any winter month PGW can release a portion of these volumes back to the asset manager in order to enhance the value of the agreement, it will contact the asset manager immediately. Historical winter usage volumes for these storages are detailed in the attached PDF.

4 Texas Eastern Transmission Supply Specifications Storages: PGW currently has three storages on the TETCO system, one of these storages is section 7C while the other two storages are part 284G. An attachment describes the type of storage, each storage capacity, each storage ratcheted injection quantity and ratcheted withdrawal quantity based on the current pipeline tariff regulations. All associated capacity and demand charges are attached. Pricing: PGW anticipates receiving a discount to the first of the month index of all natural gas injected into these storages as well as a sharing of any profits accumulated through the selected proposer s utilization of such assets. Firm transportation: PGW holds firm long line transportation on the TETCO system which can be included in the asset management agreement if requested. The long line capacity can be prorated along TETCO s historic telescopic pooling points. Credit Worthiness: All respondents must submit to a creditworthiness review by PGW. Operating Season: PGW defines its operating season from November through April. Because PGW requires these storage assets to meet its winter operation needs, it will provide a monthly volume required for its usage for each month. If within any winter month PGW can release a portion of these volumes back to the asset manager in order to enhance the value of the agreement, it will contact the asset manager immediately. Historical winter usage volumes for these storages are detailed in the attached PDF.

5 Attachments

6 Attachment A RFP 2014 Storage Gas Summary (In Dth) Storage Type SS1-A 284G SS1-B 284G GSS-TE 7C Total Available Storage (Dth) 2,647,080 2,462,120 3,918,971 Max Daily Withdrawal 44,118 20,847 34,047 Withdrawal Period Year Round Year Round Year Round Inventory Subject to 87.5% YES (1) Max Inventory on 4/ Maximum Injection Rates 13,606 Dth 12,656 Dth 21,772 < 50% 18,313 > 50% Injection Period Year Round Year Round Year Round RATCHET STRUCTURE 100% - 0% %->= 80% %->= 35% , %->= %->= 20% 44,118 20, %->= 17% %->= 60% %->= 40% %->= 20% <35%->= 20% <30%->= 20% <35%->= 16% ,323 <20%->= 10% 36,764 17, <16%->= 10% ,833 <20%->= 7% <20%->= 0% <17%->= 0% <10%->= 0% 29,413 13,899 21,450 <10%->= 7% < 7%->= 0% Additional Restrictions; GSSTE - If Storage inventory falls below - Dec. 35%, Jan. 35%, Feb. 15% than MDQ is limited 90% Minimum turnover of 65% of capacity as of Nov. 1 must be achieved by April 15 for GSS & GSSTE GSSTE is limited to a Maximum Monthly Withdrawal of 87.5% of the maximum capacity. Notes: 1) See latest tariff for transportation fuels.

7 Attachment B (Page 1 of 2) RFP 2014 Storage Gas Summary (In Dth) Storage Type GSS 7C S2 7C WSS 284G Eminence 1 284G Eminence G Total Available Storage (Dth) 4,123, ,548 3,335, , ,455 Max Daily Withdrawal 61,567 5,191 35,115 38,327 52,077 Withdrawal Period Year Round 11/16-4/15 Year Round Year Round Year Round Inventory Subject to 87.5% YES (1) (1) (1) Max Inventory on 4/ Maximum Injection Rates 22,910 < 50% 3,947 18,533 < 50% 3,198 4,346 19,270 > 50% 15,588 > 50% Injection Period Year Round 4/16-11/15 Year Round Year Round Year Round RATCHET STRUCTURE 100% - 0% --- 5, ,327 52, %->= 80% --- See 35, %->= 35% 61,567 S2 note %->= %->= 20% %->= 17% %->= 60% , %->= 40% , %->= 20% , <35%->= 20% 60, <30%->= 20% <35%->= 16% <20%->= 10% <16%->= 10% <20%->= 7% 45, <20%->= 0% , <17%->= 0% <10%->= 0% <10%->= 7% < 7%->= 0% 33, Additional Restrictions; GSS - If Storage inventory falls below - Dec. 35%, Jan. 35%, Feb. 15% than MDQ is limited to 95% Minimum turnover of 65% of capacity as of Nov. 1 must be achieved by April 15 for GSS GSS is limited to a Maximum Monthly Withdrawal of 87.5% of the maximum capacity. S2 Max. Daily Withdrawal 5,191 Dth is valid through 2/15; however, the minimum inventory level allowed as of 2/15 is 112, 779 Dth. Therefore, the total allowable quantity that can be withdrawn during the period of 11/16 and 2/15 is 353,775 Dth. Starting 2/16, the 5191 Dth reduces at a rate of 98 Dth/d through the end of Feb. From March 1 through March 15 the rate of reduction is 78 Dth/d and from 3/16 though March 31, the rate is 116 Dth/day. Starting April 1 through April 15 the maximum daily withdrawal quantity is 972 Dth/day. Notes: 1) See latest tariff for transportation fuels.

8 Attachment B (Page 2 of 2) PGW Transportation Contracts Contract Daily # Days Supply Termination Fuel Service Pipe Number Capacity-dts Service Source Date Limitations Shrinkage FT TR , Seasonal Supply Service WSS Storage 03/31/07 Available any day of the year. See Tariff PS-FT TR , WSS Storage 07/31/11 Available 12/1 through February See Tariff CDS TE R 75, Seasonal Supply Service 10/31/04 Available any day of the year. See Tariff FT-1 TE R 23, Seasonal Supply Service 10/31/04 Available any day of the year. See Tariff FT-1 TE R 18, Seasonal Supply Service 10/31/05 Permanently Released to Philadelphia See Tariff Authority for Industrial Development (PAID) except for December, January and February and 48 days of recall rights in a calendar year in the months of March, April, October and November (58 days in a year with 4900 degree days or greater). FT-1 TE R 18, Seasonal Supply Service 10/31/06 Permanently Released to Philadelphia See Tariff Authority for Industrial Development (PAID) except for December, January and February and 48 days of recall rights in a calendar year in the months of March, April, October and November (58 days in a year with 4900 degree days or greater). FTS-2 TE , /31/05 Available any day of the year. See Tariff FTS-7 TE , Dominion Storage (GSS) 03/31/06 Available any day of the year. Subject to See Tariff 87.5% contract limitation on maximum monthly storage withdrawal. FTS-8 TE , Dominion Storage (GSS) 03/31/06 Available any day of the year. Subject to 87.5% contract limitation on maximum monthly storage withdrawal. See Tariff

9 Attachment C RFP 2014 PGW Storage Demand and Capacity Charges Transco Storages GSS S2 WSS ES1 ES2 Demand Charges Capacity Charges

10 Attachment D RFP 2014 PGW Storage Demand and Capacity Charges Texas Eastern Storages Demand Charges Capacity Charges SS1A SS1B Dominion GSSTE

11 ATTACHMENT E RFP 2014 STORAGE BALANCES FOR MARCH 31ST 2008 GSS-TE Dominion 745, GSS-TE Dominion 805,213 SS1A 845,995 SS1A 1,025,576 SS1B 504,351 SS1B 874,862 Eminence 1 339,020 Eminence 1 252,919 Eminence 2 376,043 Eminence 2 435,203 GSS-Transco 1,275,679 GSS-Transco 1,091,379 S2 70,365 S2 169,925 WSS 1,924,086 WSS 1,609, GSS-TE Dominion 841, GSS-TE Dominion 773,037 SS1A 896,783 SS1A 661,452 SS1B 852,997 SS1B 431,936 Eminence 1 183,581 Eminence 1 52,232 Eminence 2 190,740 Eminence 2 84,134 GSS-Transco 1,029,533 GSS-Transco 794,659 S2 89,452 S2 62,348 WSS 1,573,977 WSS 441, GSS-TE Dominion 1,265, GSS-TE Dominion 787,794 SS1A 1,657,900 SS1A 1,023,752 SS1B 1,373,769 SS1B 860,461 Eminence 1 212,078 Eminence 1 61,459 Eminence 2 387,250 Eminence 2 204,635 GSS-Transco 1,671,279 GSS-Transco 1,204,759 S2 212,910 S2 119,735 WSS 1,305,982 WSS 772,059