2016 millennium shipper meeting - millennium pipeline · 2016 in review transcanada pipelines...
TRANSCRIPT
Vision
To become the premier pipeline in the Northeast
To attain the highest customer service rating
To attain the highest reliability rating
To bring added value to customers contracts
To provide quality staffing to meet our customer’s needs
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Our vision is to provide you with the best customer experience
2016 In Review
TransCanada Pipelines acquires Columbia Pipeline Group Millennium ownership interest is unchanged
TransCanada – 47.5%
DTE – 26.25%
National Grid – 26.25%
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Ownership change is transparent to your service
2015 Customer Survey Actions
Increased communication through customer newsletter and customer conference calls
New and additional staff
On-going and direct communications with the Navigates team
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We use your feedback. Please continue to participate in
the survey process.
Millennium Organization
Joe Shields -President
Ron Happach –Chief Operating
Officer
Mike Armstrong Director – PM
Randy Parker –Project Mgr
Bruce Page –Project Mgr
Patrick Riban –Mgr System
Design
Steven Leggett –Project Acct
Rick Gardner –SVP Business Development
Michelle Brocklesby –
Director Optimization
Riochi Giles –Business Analyst
Jeff Reavis – MgrOptimization
John Keith – VP Finance & Controller
Audrey Bottari –Executive Admin
Asst
Cynthia Castro –Staff Accountant
Georgia Carter –VP & General
Counsel
Christina Woodward –
Records Mgmt
Michelle Hook –Director Outreach
Erin Fennell –Executive Marketing Assistant
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2016 Customer Survey
2016 Energy Insights Customer Survey conducted by Wayne Rechnitz
90% participation rate
Thank you to all those who took the time to provide feedback
This is the best tool we have to measure how well we are meeting customer needs
70% of the participants agree that Millennium Pipeline provides exceptional service, 1% disagree
78% of the participants agree that Millennium Pipeline is committed to improving its customer relationships, no one disagrees
53% of the participants agree that Millennium provides better service than other pipelines, up from 27% percent last year
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We have listened to feedback and strive to improve
Customer Survey Results
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Mid/
Bk Office
Noms & Sched/
Navigates
Senior Mgnt/
Biz Dvlpmnt
General Commercial Overall
AverageGas
Control
8.38.0
7.77.6
8.0 8.2 8.0
2014
2015
2016
2016 Themes – Opportunities for improvement
A stronger relationship between Millennium and its interconnected pipelines is desired Better communication about operational challenges
Confusion on cuts
Reliability and lack of flexibility Intraday cuts impact production
Less flexibility on where gas can be shipped
Navigates Improved, but information is difficult to obtain
Confusion in regards to cuts
Concern over viability of expansion projects given the regulatory climate Customers are willing to help in any way possible
Expansions are critical to customer success
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The Millennium team is developing a plan and will report
back in the newsletter
O&M Construction Projects
Major 2016 Mainline Work - Completed
Corning CS – Turbine replacement
Minisink CS – Additional station piping testing, installation of vessels and station valving
Hancock CS – Turbine repair and maintenance
Major 2016 Mainline Work – Still Remaining
Potential cleaning pig run from Corning to Bush Hill to coincide with major work at Bluestone
Major 2017 Planned Mainline Work
Add Launcher / Receiver near Stagecoach Interconnect
Reduces run time for pigging activities
ILI Runs
Corning to Bush Hill
Westtown to Ramapo
Minisink turbine change-outs (2 units)
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Reliable Firm Service
Customers experienced ONE interruption in service 60,000 dth impact to eastern deliveries
Outage due to:
Scheduled maintenance at Minisink
Unplanned outage on another pipeline
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Firm service has been reliable – flexibility has presented a
challenge
Four Year Supply History
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Supply continues to increase, bringing value to Millennium shippers
2015/2016 Winter Flow Summary
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Direct connected markets average ~200 MM
2016 Summer Flow Summary
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Direct connected markets average ~165 MM
Customer Service Reorganization
MPC Customer Service team Missy McNamara
Teri Pollack
Ebere Bolton
Contracts Keri Crawford
Gas Control Charleston, WV
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Navigates Changes
Nov 2015 Gas/electric coordinate background
processes
Begin phased implementation of point consolidation (one receipt/delivery point)
Scheduling process improvements
2016 Point consolidation completed
Pool tolerances set to zero
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Firm Transportation
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• Ramapo capacity
provides flexibility for
Wagoner deliveries
Three Year IT History
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Significant drop in IT volumes 2015 to 2016
Factors impacting IT
• Warmer winter
• Higher load factor on
firm capacity
• AIM construction
• MPC maintenance
Two Year East Pool Volume History
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East pool liquidity on the rise in 2016
Tariff Changes Fuel
April 1 - Retainage rate of 0.512% established September 1 - Zero fuel rate becomes effective We continually evaluate fuel retention The expectation is that it will be returned to approximately the same rate (0.512%)
Clean Up Clarifications to the sale and purchase of operational gas Negotiated commodity, fuel, and surcharges for capacity releases Discretionary waivers
Coming soon – Section 4 restructuring
All concepts have had support and have been approved by FERC on other pipelines such as Columbia Gas Transmission
Providing more flexibility for contracting available capacity
Lining up MPC’s Section 4 with other previously accepted Section 4s
Mapping of changes coming soon
Spot pricing New rate schedules – LFT (lateral firm transport), LIT (lateral interruptible transport) Customer meetings, conference calls to discuss all filings
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Our goal is to make it easier for customers to conduct business
Available Capacity
November 1 - West side capacity available 42,500 dth/day Stagecoach to Empire
50,000 dth/day Stagecoach to Dominion
10,000 dth/day Stagecoach to Arlington
April 1 - West side capacity available 10,000 dth/day Stagecoach to Empire
As we did this past year – review ability to delivery additional capacity to Holding Point
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If interested in available capacity – please contact
Michelle Brocklesby
Valley Lateral Project Description
7.9 Mile 16” Lateral to CPV’s Proposed 650 MW Combined Cycle Power Plant
Reduces regional dependency on older less efficient power plants
Improves electric pricing for New York energy consumers
Competitive Power Ventures is the sole customer
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New market directly attached to Millennium – up to 127,200 dth/d
Valley Lateral Project Regulatory Status
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We anticipate a FERC order on Valley Lateral in October Construction will be conditioned on receipt of
Clean Water Act authorizations
NYSDEC decision on MPC’s 401 Water Permit due by Nov. 23, 2016 We have met all Clean Water Act standards
Valley Lateral Project vs Constitution Also greenfield, but much smaller - 7.8 miles of
16-inch pipeline
Will cross most streams and wetlands by trenchless method
Will serve gas fired generation facility that received air/clean water permits from NYSDEC
Eastern System Upgrade (ESU)
Increases capacity between Corning and Ramapo by approximately 220,000 Dth/day
Customers are Northeast Utilities
Customers are seeking diversity of supply
Increased supply at Ramapo benefits both New York and New England energy consumers
Ramapo is a major supply point for New York State utilities and power plants
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Millennium will be posting the remaining capacity shortly –
20,500 Dth
Outlook for ESU Project
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FERC Authorizations Filed July 29, 2016 after six months in pre-filing;
July 2017 approval requested.
Initial comments on ESU at FERC relatively light.
NYSDEC Authorizations Need air and 401 Water Permits from NYSDEC.
NYSDEC must act on MPC’s 401 Water Permit by July 2017.
No statutory deadline for action on air permits.
ESU vs Constitution 7.8 miles of looping along existing ROW
Adding compression at existing station; also constructing new station
Market pull
ESU Highland Compressor Station
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Millennium strives to be a good neighbor, >.5 mile to nearest residence
Other Potential Projects
Additional deliveries to Ramapo based on customer demand Ability to construct an incremental 300,000 Dth/d at approximate system rate
Expand interconnect with Dominion at Holding Point Preliminary investigation
Changes in piping, addition of filter separator
Estimated capital is within our blanket FERC authority
Capacity 100,000 Dth/d
Expand interconnect with Empire at Corning Preliminary investigation
Change in piping
Estimated capital is within our blanket FERC authority
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Millennium strives to provide cost-effective supplies to the market
We Operate in Interesting Times
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FERC at a crossroads
Under fire from environmentalists
Down to three Commissions
Two Republican vacancies
Impacts of a new administration?
Natural gas facing political challenges in NY
Will air and water permits be issued?
What is happening with the Constitution litigation?
At issue: How broad is a state’s authority under the Clean Water Act?
What does this mean for Millennium projects?
NY Regulatory Environment for 2016 Projects
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Difficult year in New York for natural gas projects.
NYSDEC rejected Constitution’s 401 Water Permit on Earth Day. Constitution immediately appealed the NYSDEC rejection to the 2nd
Circuit.
Briefs filed in September & October; oral argument set for Nov. 16.
NYSDEC has not acted on air permits for Iroquois & Dominion projects
Both have had FERC approval for months.
No deadline for states to act on Clean Air Act applications.
NGA gives pipelines a remedy at the DC Court of Appeals for a state’s failure to act.
Iroquois has filed at DC Court of Appeals to compel NYSDEC action
Dominion has not pursued a remedy in court at this time.
Uncertainty over 401 Water Permits pending at NYSDEC. Clean Water Act requires state action no later than 1 year after
application.
NYSDEC decision on Algonquin’s Atlantic Bridge 401 Water Permit due 11-18-16 and on MPC’s Valley Lateral Project on 11-23-16.
The next 12 months will tell us a lot.