joseph p. shields president - millennium pipeline speakers presenters james eckert - vp commercial...
TRANSCRIPT
Millennium Pipeline Company, L.L.C.
5th Annual Customer Meeting
October 8, 2014
Joseph P. Shields
President
1
Guest Speakers Presenters
James Eckert - VP Commercial Operations, Columbia Gas
Transmission, LLC
Tracy Halleck – Director, Northeast Marketing, Crestwood
Midstream Partners, LP
Mark Bering – VP Business Development, Millennium Pipeline
Co., LLC
4
Guest Panel
David Talley, Manager, Gas Sales, Southwestern Energy
Services
Anthony Castellano, Operations Manager, Gas Supply,
Consolidated Edison
Tracy Halleck, Director, Northeast Marketing, Crestwood
Midstream Partners, LP
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Reliability
7
Firm transportation flows 100%
FT2 & IT only sold when there is no
impact on FT-1 contracts
Strong operations team
Joseph P. Shields *
President
Audrey Bottari
Executive
Administrative
Assistant
John V. Keith *
VP Finance & Controller
Laura Cosenza
Office Administrator
Christopher Estep
Director of Marketing
James Ransom
Director of Pipeline
Operations
Gary Kruse *
VP General Counsel &
Secretary
Christina Woodburn
Records Management/
Contract Administrator
Organizational Chart
Detailed Org Chart
10/1/14
Executive Officer *
Mark Bering *
VP Business Development
William Nyahay
Director Market Analysis
Michelle Brocklesby
Director Optimization
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Millennium Pipeline Today
12
Hancock
Compressor
Station
Dominion
Holding Point
200 MM Del
Wagoner TCO
Interconnect
115 Rec/Del
Ramapo
500 MM Rec
850 MM Del Corning
500 MM Rec
350 MM Del
Review of Millennium RAM Activity for First Six Months of 2014
RAM Component
Projected
Volumes as
per RAM
Filing MDth Review of First Six Months of 2014
Current Fuel 1,400
Fuel quantities are exceeding projected levels.
Millennium is monitoring the data and operational
changes resulting from the use of its new system.
Current LAUF 900 LAUF for the first half of 2014 is below projections.
RAM Under-Recovery
Surcharge 1,304
Under-Recovery balance is being reduced as
expected.
Throughput 505,000 Throughput is on pace to meet projections.
Maintaining the current RAM rate through March 2015
Based on RAM activity for the first half of 2014, Millennium projects that
the RAM under-recovery will be eliminated by the next RAM filing.
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Current Expectations for 2015 RAM
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Expect to fully recover 2014 RAM surcharge
Surcharge component is presently 0.259% of receipt
volumes
Expect Company Use Gas and LAUF to
remain in the range of 0.3% to 0.5%
More recent activity reflects higher CUG and lower LAUF
Overall RAM rate is expected to be at or
below 0.5%
Actual RAM rate will depend on Millennium’s operations for
the remainder of 2014
To Summarize…
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Reliability – FT-1 flows 100%
Communication – “No surprises!”
Customer Service – 2014 Customer Survey
Bring value to our all customers
Fuel – Maintaining current RAM through
March 2015
Millennium Pipeline Company, L.L.C.
5th Annual Customer Meeting
October 8, 2014
Mark Bering
Vice President, Business Development
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Millennium Pipeline Overview
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Jointly owned by
NiSource, National
Grid and DTE
Energy
Extends 220 miles
across the southern
tier of New York
state
Multiple receipt
points for Marcellus
production
Interconnects with
National Fuel,
Empire, Dominion,
Columbia,
Algonquin and local
NY markets
Access to storage
Northeast Marcellus
Production
The Supply Picture
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-
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
Bluestone
Laser
Independence
Stagecoach
Nov-12 Nov-13 Aug-14
Millennium LDC City Gates
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-
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
Central Hudson
Orange & Rockland
NYSEG
Flows from Winter 2013/14
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Independence
62 MM Avg.
94 MM Peak
Ramapo
595 MM Avg.
700 MM Peak
Wagoner
38 MM Avg.
84 MM Peak Stagecoach
583 MM Avg.
701 MM Peak
Corning
340 MM Avg.
351 MM Peak
Laser
201 MM Avg.
283 MM Peak
Bluestone
235 MM Avg.
282 MM Peak
Flows this Summer
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Independence
54 MM Avg.
86 MM Peak
Ramapo
707 MM Avg.
830 MM Peak
Wagoner
50 MM Avg.
61 MM Peak
Stagecoach
583 MM Avg.
681 MM Peak
Corning
243 MM Avg.
261 MM Peak
Laser
313 MM Avg.
367 MM Peak
Bluestone
279 MM Avg.
392 MM Peak
Holding Point
104 MM Avg.
193 MM Peak
Diversity of Supply on Millennium
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Stagecoach Laser Bluestone
Anadarko Cabot Cabot
BG Carrizo Southwestern
BP Reliance
Cabot WPX
Cargill
Castleton
Chesapeake
Merrill Lynch
MMGS
NJR Energy Services
Reliance
Repsol
Sequent
Southwestern
WPX
* Producers & Marketers with transportation on Millennium or upstream pipelines
Millennium Accesses Low Priced Marcellus production
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$0
$10
$20
$30
$40
$50
$60
$70
$80
$90
1-Nov-13 1-Dec-13 1-Jan-14 1-Feb-14 1-Mar-14
Winter 2013/2014 Daily Spot Prices
Millennium East
Iroquois
Algonquin
Dawn
$/MMBtu
Expansion Opportunities
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Algonquin at Ramapo
200-300 MDthd to serve AIM / Atlantic Bridge
Rate of $0.58 - $0.62/Dth to Algonquin
In service date of Nov 2017
Currently negotiating terms with potential anchor shippers
Empire at Corning
175-300 MDthd to serve Empire expansion to Chippawa and/or TGP
200 at Hopewell
Rate of $0.15/Dth to Empire
In service date of Nov 2017 with ability to start some volumes as early
as Nov 2015
Currently negotiating terms with potential anchor shippers
Tariff Changes Summary
32
Responding to customer feedback:
Changes to Section 15 – Force Majeure
Reservation Charge Credits
Reverse open season process for planned outages - Voluntary
Interruption Commitments
Detailed communication & webinar before we file with the FERC
Reservation Charge Credits
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Credits calculation changing for planned outages and force
majeure events
Based on average scheduled volumes 7 days prior to force
majeure event or planned outage
Shippers no longer required to nominate during an outage to
qualify for credits
Reverse Open Season Process
34
Prior to a planned outage that will impact Firm transportation,
Millennium may hold a reverse open season
Firm Shippers may temporarily relinquish capacity by bidding in
the reverse open season – volume, price, term
Winning bids will receive Voluntary Interruption Commitments
or “VIC” credits on their next invoice
Reduces the impact of a planned outage on remaining Firm
transportation
Customer Survey Goals
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Understand where we are today so we can improve our
customer service
Establish “Baseline” for all customer service categories
Identify gaps and weaknesses
Develop action item plans
Customer Survey Overview
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Customer surveys conducted in September
Survey managed by Wayne Rechnitz of Energy Insights
Survey categories for Executive, Commercial, Scheduling, Gas
Controls, and Back/Middle Office
THANK YOU to all those that participated!
Final Results of survey to be released late October
Preliminary Survey Results
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85% Participation Rate – THANK YOU!
Areas we need to focus on include:
Our nominations system, system flexibility, better communication
with our customers and strategic direction
One of the bright spots was our Back Office support – contracts
and invoicing
Overall we heard you say that Millennium is doing a “Good” job,
but not a “Great” job in most areas
We’re listening and will respond to your feedback!
Thank You For Your Business!
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For more information, please contact:
Mark Bering
VP Business Development
845-620-0147 Work
313-404-5567 Cell