spring 2016 master · 2016-03-08 · 17.3%warmer through 3/6/12** 0 1,000 2,000 nov dec jan feb mar...

National Fuel Gas Distribution Corporation Spring 2016 Marketer/Supplier Teleconference March 9, 2016

AGENDA

1:00 pm Welcome and Roll Call Dave Wolford

1:15 pm Operational Update Dave Wolford

o Gas Nomination Timeline Changes

1:45 pm Capacity Update Bob Michalski

2:00 pm Rates & Regulatory Update Mike Novak

o Federal Regulatory Update o NY Regulatory Update o PA Regulatory Update

2:30 pm New Utility Billing System Implementation Mike Novak

2:45 pm General Discussion All

3:00 pm Closing Dave Wolford

National Fuel

National Fuel Gas Distribution Corporation

Spring 2016 Marketer/Supplier

Teleconference

Operational UpdateOperational Update

Presentation by: Dave Wolford

March 9, 2016

1

National Fuel Transportation CustomersTransportation Customers

STAND-ALONE CUSTOMERS

MONTHLY (MMT) –

New York 1

Pennsylvania 0

DAILY (DMT) –

New York 0

Pennsylvania 73

TOTAL 74

AGGREGATION CUSTOMERS

TOTAL NFGDC 143,552

New York (STBA) 113,143

New York (DMT) 35

Pennsylvania (MMNGS) 3,177

Pennsylvania (SATS) 27,123

TOTAL 143,478

2

National Fuel

80,000

100,000

120,000

140,000

Nu

mb

er o

f C

ust

om

ers

National Fuel Gas DistributionNY STBA Enrollment

ResidentialNon-ResidentialTotal

0

20,000

40,000

60,000

80,000

Sep

-05

Mar

-06

Sep

-06

Mar

-07

Sep

-07

Mar

-08

Sep

-08

Mar

-09

Sep

-09

Mar

-10

Sep

-10

Mar

-11

Sep

-11

Mar

-12

Sep

-12

Mar

-13

Sep

-13

Mar

-14

Sep

-14

Mar

-15

Sep

-15

Mar

-16

Nu

mb

er o

f C

ust

om

ers

3

National Fuel

20,000

25,000

30,000

35,000

Nu

mb

er o

f C

ust

om

ers

National Fuel Gas DistributionPA SATS Enrollment

Residential

Non-Residential

Total

0

5,000

10,000

15,000

20,000

Sep

-10

No

v-10

Jan

-11

Mar

-11

May

-11

Jul-

11S

ep-1

1N

ov-

11Ja

n-1

2M

ar-1

2M

ay-1

2Ju

l-12

Sep

-12

No

v-12

Jan

-13

Mar

-13

May

-13

Jul-

13S

ep-1

3N

ov-

13Ja

n-1

4M

ar-1

4M

ay-1

4Ju

l-14

Sep

-14

No

v-14

Jan

-15

Mar

-15

May

-15

Jul-

15S

ep-1

5N

ov-

15Ja

n-1

6M

ar-1

6

Nu

mb

er o

f C

ust

om

ers

4

National Fuel

2,000

2,500

3,000

3,500

Nu

mb

er o

f C

ust

om

ers

National Fuel Gas DistributionPA MMNGS Enrollment

TotalResidentialNon-Residential

0

500

1,000

1,500

2,000

No

v-07

Mar

-08

Jul-

08

No

v-08

Mar

-09

Jul-

09

No

v-09

Mar

-10

Jul-

10

No

v-10

Mar

-11

Jul-

11

No

v-11

Mar

-12

Jul-

12

No

v-12

Mar

-13

Jul-

13

No

v-13

Mar

-14

Jul-

14

No

v-14

Mar

-15

Jul-

15

No

v-15

Mar

-16

Nu

mb

er o

f C

ust

om

ers

5

National Fuel

85.4 87.0

80.3

91.2

99.9 94.6

80.0

100.0

120.0

NEW YORK12 Month Totals

(Through December 2015) Throughput Transported

42.7 43.5 41.6 46.9

51.9 49.4

0.0

20.0

40.0

60.0

2010 2011 2012 2013 2014 2015

BC

F

6

National Fuel

41.1 42.1 39.5

45.2

49.9

46.3

28.3 30.0

40.0

50.0

PENNSYLVANIA12 Month Totals


18.7 21.1 21.3

25.3

28.3

26.0

0.0

10.0

20.0

30.0

2010 2011 2012 2013 2014 2015

BC

F

7

National Fuel

126.5 129.1

119.8

136.4

149.7

140.9

100.0

120.0

140.0

160.0

NFGDC YEARLY DELIVERIES12 Month Totals


61.4 64.6 62.8

72.2 80.2

75.4

0.0

20.0

40.0

60.0

80.0

2010 2011 2012 2013 2014 2015

BC

F

8

National Fuel

50.0% 50.0%51.8% 51.4% 52.0% 52.2%

40%

50%

60%

NYTRANSPORTATION PERCENTAGE

OF 12 MONTH DELIVERIES

0%

10%

20%

30%

Dec-10 Dec-11 Dec-12 Dec-13 Dec-14 Dec-15

9

National Fuel

45.4%

50.1%53.9%

56.1% 56.7% 56.1%

40%

50%

60%

PATRANSPORTATION PERCENTAGE


0%

10%

20%

30%


10

National Fuel

48.5% 50.1%52.5% 52.9% 53.6% 53.5%

40%

50%

60%

NFGDC TRANSPORTATION PERCENTAGE


0%

10%

20%

30%


11

National Fuel

Marketer/Supplier Operations SupportMarketer/Supplier Operations Support

• NFGDC provides a full range of business tools and support services:

– NFGDC Website:

http://www.nationalfuelgas.com/marketers/default.aspx

– Operating Procedures Manuals:

• GTOP, TSS, TSS Reports, Aggregator, Market Pool, Production Pool

– Transportation Scheduling System – TSS– Transportation Scheduling System – TSS

– Training

– Help Desks

• Scheduling: 716-857-7232 email: [email protected]

• Billing: 716-857-7432 email: [email protected]

– After Hours Scheduling Support: 716-857-7232

12

National Fuel

New York & Pennsylvania OperationsNew York & Pennsylvania Operations

• Daily Delivery Quantities (DDQs)

– DDQs are customer usage estimates based on usage history, weather

forecasts, actual measurement

• Customer usage estimates need to be as accurate as possible

• Meet daily delivery requirements (DDQs) to serve marketMeet daily delivery requirements (DDQs) to serve market

• Production Daily Quantities (PDQs)

– PDQs are estimates of local production based on production volume

history

• Local production estimates need to be as accurate as possible

• Deliver upstream supplies at primary firm or acceptable alternate

delivery points

13

National Fuel

New York & Pennsylvania OperationsNew York & Pennsylvania Operations

• Market Pool and Production Pool operators are responsible for monitoring

actual flowing volumes and adjusting DDQs and PDQs via TSS

• Monitor storage inventories

– Required end of month storage inventory percentages are minimums,

not targets

• REMINDER: National Fuel provides PA DMT pool operators, and requesting • 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 E-MAILED TO [email protected]. THIS IS A PA GTOP REQUIREMENT.|

---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

14

National Fuel

SYSTEM MAINTENANCE ORDERSSYSTEM MAINTENANCE ORDERS

* TO MAINTAIN SYSTEM OPERATIONAL INTEGRITY *

• SYSTEM ALERT

• OFO

• UNAUTHORIZED OVERRUN

• CURTAILMENT

15

National Fuel Operational Update

Winter 2015 – 2016(Gas days inclusive)

• System Alerts – 2 Warm Weather

• December 12-14

• December 21-27

– 1 Cold Weather

• February 11-14• February 11-14

– 5 DDQ Averaging

• November 26-30

• December 24-28

• January 9-11

• January 29-31

• February 13-16

• OFOs– None

16

National Fuel

40

50

60

70

National Fuel Degree Days (HDD)

Buffalo NY - 2015-2016

Actual HDD as of 3-6-16

16.2% WTN

Actual HDD

November 2015 23.4% WTN

December 2015 35.0% WTN

January 2016 5.7% WTN

February 2016 8.2% WTN

March 2016 (EST) 23.0 WTN

0

10

20

30

Nov Dec Jan Feb MarActual HDDs Normal HDDs (NOAA 1981-2010) Forecast Accuweather HDDs Mar 7 - Mar 31

17

National Fuel

3,000

4,000

5,000

6,000


Cumulative Buffalo NY - 2015-2016

16.2% Warmer through 3/6/16

12.6% Colder through 3/6/15


17.3% Warmer through 3/6/12**

0

1,000

2,000

Nov Dec Jan Feb MarActual HDDs Winter 2015-16 Normal HDDs (NOAA 1981-2010)

Actual HDDs Winter 2014-15 Actual HDDs Winter 2013-14 (Coldest in 71 Years)

Cumulative HDD through the end of





March 2016 (EST) 17.9% WTN

** The normals used for Winter 2011-12 are based off of NOAA 1971-2000 data.

18

National Fuel

30

40

50

60


Erie PA - 2015-2016

Actual HDD as of 3-6-16

16.4% WTN

Actual HDD





March 2016 (EST) 22.0 WTN

0

10

20

Nov Dec Jan Feb Mar

Actual HDDs Normal HDDs (NOAA 1981-2010) Forecasted Accuweather HDDs Mar 7 - Mar 31

19

National Fuel

3,000

4,000

5,000

6,000


Cumulative Erie PA - 2015-2016

16.4% Warmer through 3/6/16



17.9% Warmer through 3/6/12**

0

1,000

2,000

Nov Dec Jan Feb MarActual HDDs Winter 2015-16 Normal HDDs (NOAA 1981-2010)

Actual HDDs Winter 2014-15 Actual HDDs Winter 2013-14 (4th Coldest in 61 Years)

Actual HDDs Winter 2011-12 (Warmest in 61 Years)

Cumulative HDD through the end

of





March 2016 (EST) 18.4% WTN

** The normals used for Winter 2011-12 are based off of NOAA 1971-2000 data.

20

National Fuel

Winter 2015Winter 2015--2016 Operations Summary2016 Operations Summary

• November – February, No Issues.

• March – No issues at this point.

21

National Fuel

Gas Nomination Timeline ChangesGas Nomination Timeline Changes

RM14-2 - Coordination between Natural Gas and Electricity Markets

– Order 809 Issued 4/16/2015

• No change to Gas Day;

• Timely Nomination Deadline changes from 12:30 PM (ET) to • Timely Nomination Deadline changes from 12:30 PM (ET) to 2:00 PM (ET);

• Intraday 2 Nomination Deadline changes from 6:00 PM (ET) to 3:30 PM (ET);

• Additional Intraday 3 Scheduling Cycle Added with nomination deadline of 8:00 PM (ET).

– Changes take effect for Gas Day 4/1/2016 beginning with Timely Nominations on 3/31/2016.

22

National Fuel

Eastern Standard Time

Current TSS - SBS DCon process timeline

Nom

Deadline

TSS file

created

SBS file auto

created

TSS load of

SBS file

Schedule

Issued Cycle Rule

Start of Gas

Flow

Timely 12:30 PM 1:00 PM 5:05 PM 5:15 PM 5:30 PM 10:00 AM

Evening 7:00 PM 7:15 PM 10:35 PM 10:45 PM 11:00 PM 10:00 AM

Intraday 1 11:00 AM 11:30 AM 2:35 PM 2:45 PM 3:00 PM 0.333 1/3 6:00 PM

Intraday 2 6:00 PM 6:15 PM 9:35 PM 9:45 PM 10:00 PM 0.5 1/2 10:00 PM

23

National Fuel

TSS - SBS DCon process timeline on 3/31/16 ONLY

Nom

Deadline

TSS file

created

SBS file auto

created

TSS load of

SBS file

Schedule

Issued Cycle Rule

Start of Gas

Flow

Timely for 4/1/16 2:00 PM 2:30 PM 5:35 PM 5:45 PM 6:00 PM 10:00 AM

Evening for 4/1/16 7:00 PM 7:15 PM 9:35 PM 9:45 PM 10:00 PM 10:00 AM

Intraday 1 for

3/31/16 11:00 AM 11:30 AM 2:35 PM 2:45 PM 3:00 PM 0.333 1/3 6:00 PM

Intraday 2 for

3/31/16 6:00 PM 6:15 PM 9:35 PM 9:55 PM 10:00 PM 0.5 1/2 10:00 PM

24

National Fuel

TSS - SBS DCon process timeline beginning on 4/1/2016

Nom

Deadline

TSS file

created

SBS file

auto

created

TSS load of

SBS file

Schedule

Issued Cycle Rule

Start of Gas

Flow

Timely for 4/2/16 2:00 PM 2:30 PM 5:35 PM 5:45 PM 6:00 PM 10:00 AM

Evening for 4/2/16 7:00 PM 7:15 PM 9:35 PM 9:45 PM 10:00 PM 10:00 AM

Intraday 1 for

4/1/16 11:00 AM 11:30 AM 1:35 PM 1:45 PM 2:00 PM 0.208 5/24 3:00 PM

Intraday 2 for

4/1/16 3:30 PM 3:45 PM 6:05 PM 6:15 PM 6:30 PM 0.375 9/24 7:00 PM

Intraday 3 for

4/1/16 8:00 PM 8:15 PM 10:35 PM 10:45 PM 11:00 PM 0.542 13/24 11:00 PM

25

National Fuel

26

National Fuel

Questions?Questions?

27

National Fuel



Teleconference

Capacity UpdateCapacity Update

Presentation by: Bob Michalski

March 9, 2016

28

National Fuel

Discussion Topics

• NY STBA - Mandatory Upstream Transmission

Capacity (MUTC)

• PA SATS - Released Transmission Capacity

(RTC)(RTC)

• System Balancing Operations

• Released ESS Capacity inventory requirements

• DDQs & Scheduling for Holiday/Split Weekend

29

National Fuel

NY STBA Capacity

• Serves Requirements for up to 62 DD:

�Intermediate Capacity (NFGS ESS) provides 33%

�Upstream Capacity (MUTC) provides 67%�Upstream Capacity (MUTC) provides 67%

• MUTC released at weighted average cost of capacity

(WACOC) rate:

�ESS – 15% of MUTC, released at its maximum rate

�TGP – 85% of MUTC, 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

30

National Fuel

NY STBA Capacity

31

National Fuel

NY MUTC TGP Released Capacity

TGP FT-A Z4 and Z5 Delivery Contracts – Effective Apr 2016 - 85% of MUTC

Date Z1-4 Z0-4 Z4-4 Total Z4 Z1-5

Apr 2012 100%

Apr 2013 38% 33% 29% 100%

Apr 2014 20% 17% 63% 100%

Apr 2015 19% 17% 59% 95% 5%

Apr 2016 * 21% 18% 61% 100% 0%

* Projected Release Mix; reflects Feb 2016 release quantities

32

National Fuel

NY MUTC WACC & Release Rates

MUTC Capacity Mix: ESS – 15%, TGP FT-A Z4 and Z5 – 85%

Date WACOCESS Max

Rate/Dth

TGP Release

Rate/Dth

WACOC Change

Since Apr 2012

Apr 2012 $10.8359 $4.1649 $11.9219 -Apr 2012 $10.8359 $4.1649 $11.9219 -

Apr 2013 $10.5102 $4.4947 $11.4895 (3%)

Apr 2014 $9.8099 $4.4817 $10.6773 (10%)

Apr 2015 $9.4158 $4.4817 $10.2865 (13%)

Apr 2016 $10.0213 $4.3924 $11.0146* (8%)

* Projected Release Rate/Dth; reflects Feb 2016 release quantities

33

National Fuel

PA SATS Capacity

• Serves Requirements for up to 62 DD

• Capacity mix filed for August 2016:

�Upstream Pipeline Capacity 47%�Upstream Pipeline Capacity 47%

�NFGSC ESS Intermediate Capacity 53%

34

National Fuel

PA SATS Capacity

35

National Fuel

PA SATS TGP Release Rate

TGP FT-A Z4 Delivery Contract – Effective Aug 2016 - 47% of RTC

Date Z1 – Z4 Z0 – Z4 TGP Release Rate/Dth* Change

Aug 2012 100% $14.9823 -

Aug 2013 100% $13.8762 (7%)

Aug 2014 100% $11.7962 (21%)

Aug 2015 100% $10.1388 (32%)

Aug 2016 100% $9.6158** (36%)

*PA TGP Release Rate = PA WACOC Rate.

** Projected Rate/Dth

36

National Fuel

System Balancing Issues

• Scheduling to Primary Delivery Points

�Winter

• New York – TGP Zone 5 (Nashville)*• New York – TGP Zone 5 (Nashville)*

• Pennsylvania – TGP Zone 4 (Sharon)

�Summer

• New York - TGP Zone 5 – Storage Fill (Nashville)*

* (Nashville) only applicable if TGP Zone 5 capacity is released

37

National Fuel

ESS Inventory Levels– NY&PA

End of Month Minimum % FullApril 0%

May 12%

June 29%

July 46%July 46%

August 63%

September 80%

October 95%

November 90%

December 75%

January 50%

February 28%

March 0%38

National Fuel

Daily Delivery Quantity (“DDQ”) Averaging

• DDQs are typically averaged for weekends and

holidays, subject to operational requirements.

• If DDQs cannot be averaged, notice will be provided

on the business day prior to the day that on the business day prior to the day that

weekend/holiday DDQs are to be provided.

39

National Fuel

Split Weekend DDQ Averaging

Apr 2016 May 2016

27 28 29 30 1 2

Wed Thu Fri Sat Sun Mon

• Wed: Notice given if DDQs will not be averaged

• Thu: DDQs posted for Fri – Sat (Apr) & Sun – Mon (May)

Gas trades on ICE for Fri - Sat

• Fri: Gas trades on ICE for Sun - Mon

40

National Fuel


41

National Fuel



Teleconference

Rates & Regulatory Update

Presentation by: Michael Novak

March 9, 2016

42

National Fuel Rates & Regulatory Update

Federal Update

Pipeline Rate Events

• National Fuel Gas Supply Corporation (NFGSC) was

required to file a general rate case by 1/1/2016.

• Instead, on 9/29/2015 NFGSC filed a Supplemental • Instead, on 9/29/2015 NFGSC filed a Supplemental

Stipulation and Agreement (of the RP12-88 S&A).

• On 11/13/2015, FERC issued Letter Order Approving

Filing of an Uncontested Supplemental Stipulation and

Agreement in Docket No. RP15-1310.

– Reduced Rates went into effect 11/1/2015.

43


Federal Update

Pipeline Rate Events• On 12/18/2015, Columbia Gas Transmission, LLC

(Columbia) filed Stipulation and Agreement of Settlement (Docket No. RP16-314).– Described by Columbia as a comprehensive agreement in the

Modernization II Settlement to extend the essential provisions of Modernization II Settlement to extend the essential provisions of the Modernization I Settlement (RP12-1021) for a Second Term.

– Capital Cost-Recovery Mechanism (CCRM) Tracker/Surcharge addressing storage facilities and additional transmission facilities.

• As yet, FERC has not issued an Order on Columbia’s Petition for Approval.– Reduced Rates could go into effect 4/1/2016 although the long

term rate effect will be to increase rates.

44


New York Update

New York GTOP

– GTOP Version 2.60 was filed on 1/29/2016• Change in the gas switching timeline from 15 calendar days to 10 business

days.

• SC-13M (MMT) Customers with multiple meters per account may request that meters measuring de minimis account consumption be excluded from the electronic telemetering equipment requirement.

• Adjustments to teleconference scheduling procedures. Other routine updates and clarifications.

• Adjustments to teleconference scheduling procedures. Other routine updates and clarifications.

– GTOP Version 2.61 was filed on 2/29/2016• UBP Compliance filing.

• Update to the capacity mix for Mandatory Upstream Transmission Capacity (MUTC).

• Gas Nomination Timeline Change.

No Distribution-initiated tariff changes affecting STBA service are anticipated, however….

45

National FuelRates & Regulatory Update

New York Update

Case 12-M-0476 - 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”)

– Order issued on 2/25/2014• UBP Changes regarding Door-to-Door Marketing;• UBP Changes regarding Door-to-Door Marketing;

• Changes regarding ESCO service to Low Income Customers;

• Technical Conference to address implementation of new requirements from Order;

• Collaborative to address changes in Electronic Data Interchange(“EDI”) Standards

related to new requirements from Order;

• Collaborative on ESCO Specific POR Discount Rates.

– On 4/25/2014, the PSC issued Order Granting Requests For Rehearing

And Issuing A Stay• Low Income/HEAP related provisions of the 2/25/2014 Order were stayed.

46


New York Update

Case 12-M-0476 – NY Retail Energy Markets Case

• On 2/6/2015, the PSC issued Order Granting and Denying

Petitions For Rehearing In Part

– Stay lifted on Low Income/HEAP related provisions of the 2/25/2014

Order subject to various modifications.Order subject to various modifications.

– Directed development of an EDI transaction to be used by ESCOs to

send utilities bill credits for Assistance Program Participants (APP).

47


New York Update

Case 12-M-0476 – NY Retail Energy Markets Case

• The directive to ESCOs in the 2/25/2014 Order was that in order to sell

energy commodity to Assistance Program Participants, the ESCO must

guarantee such customers savings in comparison with what the customer

would have paid the utility, or must include energy-related value-added

services that may reduce a customer’s overall energy bill. services that may reduce a customer’s overall energy bill.

• A Staff-led collaborative was established by the 2/6/2015 Order to:• Define the energy-related value-added products and services that must be

provided to Assistance Program Participants (APP);

• Consider available technologies and mechanisms for implementing point-of-

sale confirmation of APP customers;

• Consider how best to protect existing APP customers;

• The Staff Report was filed on 11/5/2015– Comments and Reply-comments were filed in response.

48


New York Update

Case 15-M-0127 - In the Matter of Eligibility Criteria for Energy Services Companies.

– Staff proposed that the Commission move toward reliance on industry-developed eligibility requirements. The retail energy supply industry should develop clear and common standards for core issues of importance to consumers;

Changes to Application Requirements including – Changes to Application Requirements including demonstration of required expertise.

– Standardized Definitions of “Fixed Price” and “Green Energy”;

– Standard Contracts or Contract Terms;

– Consequences Applicable to ESCOs with a Material Pattern of High Complaints;

– Other Administrative changes.

49


New York Update

Case 15-M-0127 - In the Matter of Eligibility Criteria for Energy Services Companies.

– On 2/23/2016, the PSC issued Order Resetting Retail Energy Markets and Establishing Further Process (“Resetting Order”);

• For gas customers, the order extended the protections envisioned in 12-M-0476 for APP Customers to all mass-market customers.

• The Resetting Order set forth issues to be evaluated within 60 days to refine the retail energy markets for residential and small non-residential customers in New York and consider new requirements applicable to entities providing energy to retail energy markets for residential and small non-residential customers in New York and consider new requirements applicable to entities providing energy to mass market customers.

• 10-day (March 4, 2016) Implementation ordered.

– On 2/23/2016, the PSC issued Notice Seeking Comments on Resetting Retail Energy Markets for Mass Market Customers;

– On 3/2/2016, the PSC issued Notice Denying Request for Extension;

– On 3/4/2016, a NY Court granted a temporary restraining order preventing enforcement of certain provisions of the Reset Order; reportedly through at least 4/14/2016.

50

National Fuel

Case 15-M-0127 Notices/Information web page

• Accessible from Services For Marketers, Producers & Suppliers web page

http://nationalfuelgas.com/marketers/default.aspx

ESCO/Supplier – Change Impacts

National Fuel’s New Utility Billing System

51

National Fuel

Case 15-M-0127 Notices/Information web pagehttp://nationalfuelgas.com/marketers/Case15-M-0127/default.aspx



• This web page will be the primary means to communicate information to ESCOs concerning the Resetting Order as it relates to National Fuel’s service territory. Please check it regularly.

52


New York Update

Case 12-M-0476 – NY Retail Energy Markets CaseChanges to EDI Standards

• On 3/2/2015, the PSC issued an Order approving EDI modifications developed from the 2/25/2014 Order.

– Other New York utilities implemented EDI changes by 11/2/2015.

• NFGDC implementation factors.• NFGDC implementation factors.– Changes limited to pre-enrollment provision of Customer SIC Codes,

Shopping Status, Tax Exempt Status, whether the customer has non-portable utility discounts, new codes indicating whether the customer has an enrollment block, historical usage block or both.

– NFGDC provides the 11/2/2015 items through online Customer Information Inquiry (CII) secured website access (non-EDI).

– EDI Implementation will take place when the new billing system is implemented.

– CII access will continue.

53


Pennsylvania Update

Pennsylvania GTOP

– GTOP Version 2.60 was filed on 3/1/2016

• Implementation of the revised gas industry standard nomination timeline

• Clarification of procedures and responsibilities • Clarification of procedures and responsibilities during telemetering failures.

No Distribution-initiated tariff changes affecting SATS or MMNGS services are anticipated, however…

54


Pennsylvania Update

Investigation of Pennsylvania’s

Retail Natural Gas Supply Market

I-2013-2381742 (“RMI”)

• By Order entered 9/12/2013, the Commission initiated an

investigation of the market because it believes there are more

opportunities for customers to benefit from robust competition in opportunities for customers to benefit from robust competition in

the retail natural gas market.

• In an Order issued 12/18/2014, the Office of Competitive Market

Oversight (OCMO) was directed to examine various issues with the

goal of improving the retail gas market and stimulating customer

participation.

55


Pennsylvania Update

RMI

Capacity Assignment/

Use of Storage

System Balancing,

Tolerances and Penalties

Access to Local

Production

Seamless Moves &

Instant Connects

Accelerated Switching Creditworthiness

Requirements

Standard Offer Program Account Number Lookup Low Income ShoppingStandard Offer Program Account Number Lookup

Mechanisms

Low Income Shopping

Customer Education Migration Riders Purchase of Receivables

Programs

Disclosure Statements Electronic Data Protocols Joint NGDC – NGS Bill

56


Pennsylvania Update

Investigation of Pennsylvania’s Retail Natural Gas Supply Market

I-2013-2381742 (“RMI”)

• Working Groups met during summer 2015 (“the Beast

Committee”) covering several topics including:

– Capacity and Storage Release;– Capacity and Storage Release;

– Penalties and Balancing;

– Access Points;

– Standard Offer Programs;

– Creditworthiness.

• A Tentative Order from the PUC is the likely next step.

57


Pennsylvania Update

Investigation of Pennsylvania’s Retail Natural Gas Supply MarketI-2013-2381742 (“RMI”)

• M-2015-2468991 – Final Order - Natural Gas Distribution Company Customer Account Number Access Mechanism for Natural Gas Suppliers.– Distribution’s compliance plan has been filed with the PUC.– Distribution’s compliance plan has been filed with the PUC.

– Implementation will likely be delayed until January 2017.

• M- 2015-2474802 – Final Order - Joint Natural Gas Distribution Company – Natural Gas Supplier Bill.– With the exception of the Shopping Box, Distribution’s bill will be compliant

when the new billing system is implemented (display of logo and NGS message space).

– The Shopping Box information is currently displayed on the front page of the bill, but not displayed in the prescribed format.

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Pennsylvania Update

2016 Annual 1307(f) filing

• Status Update– Exhibits were filed January 2016.– Tariff and Testimony were filed February 2016.– No major non-gas cost tariff initiatives are being bundled with 1307(f) filing.

• Filing Highlights – proposed rate* changes:• Filing Highlights – proposed rate* changes:– MMT from $0.2900 to $0.2700– SATC from $0. 2844 to $0.2506– PSB from $1.1791 to $1.1086– SB from $0. 5583 to $0.5272– RTC from $9.9539 to $9.6158 (weighted avg. demand cost of upstream capacity)

– DTR [Nov. $0.33 to $0.23, Dec $0.54 to $0.44, Jan $0.41 to $0.33 & Feb $0.00 to $0.10]

• Implementation to be effective August 1, 2016.

* Relative to current tariff rates

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National Fuel

Overview

1. Cutover date scheduled for May 9th, 2016.

2. Recap of major business changes.



2. Recap of major business changes.

3. EDI Testing and Web Files.

4. Cutover gaps and workarounds.

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• Even though the changes will be largely invisible to customers, the new SAP customer information system touches nearly every aspect of National Fuel’s customer data management.

• The slides within this presentation address the



• The slides within this presentation address the Company’s interaction with ESCOs and NGSs, focusing upon changes to current business processes.– Some changes will impact the manner in which ESCOs and

NGSs provide service to their customers.

– In most cases, the system design maintains continuity before and after SAP implementation.

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National Fuel

New Utility Billing System Notices/Information web pagehttp://nationalfuelgas.com/marketers/SAPannounce.asp



• This web page will be the primary means to communicate information to ESCOs/NGSs concerning the new billing system. Please check it regularly.

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National Fuel

Budget Billing Plan Consolidation

• For Utility Consolidated Billing (“UCB”) enrolled accounts, NFG will no longer require customers to enroll in separate supply and delivery budget billing plans.– Budget Plans will be consolidated in to one plan.

– Budget Plans will no longer need to be “settled” whenever a customer



– Budget Plans will no longer need to be “settled” whenever a customer switches ESCOs.

• For POR enrolled customers, NFG will purchase the receivable based on the “billed amount”. – NFG will no longer purchase the ESCO/NGS supply budget plan

amount.

– Conforming modifications to the POR section of the Billing Service Agreement (“BSA”) were included in the September 2015 GTOP filings.

• ESCOs/NGSs may be required to execute new BSAs.

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National Fuel

Budget Billing Plan Consolidation

• ESCOs/NGSs will no longer be able to send Budget Plan Amounts and Review indicators on EDI Enrollment and Change transactions.

– ESCOs/NGSs will still be able to add customers to Budget Billing.

– ESCOs/NGSs will no longer be able to remove customers from Budget



– ESCOs/NGSs will no longer be able to remove customers from Budget Billing.

• Customers must contact the Company to leave Budget Billing.

• All ESCO/NGS Budget Plans will be settled to prepare for consolidation.

– After the credit/debit balance is sent to the ESCO/NGS, any balance still owed by the customer will be transferred into the customer’s consolidated plan.

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National Fuel

Utility Combined Billing – Sales Tax Rate Changes

• ESCOs/NGSs will be required to provide sales tax rates via EDI to be applied to the commodity portion of the customer’s bill when enrolling customers under the UCB Model.– Sales tax on ESCO/NGS commodity will be calculated independently

from sales tax on utility delivery charges.



from sales tax on utility delivery charges.

– At cutover, the sales tax rates for each ESCO/NGS customer in the new system will be populated with rates from the current system.

• The UCB EDI Enrollment requirement is prospective and also applies to EDI changes for existing customers switched from MCB or Dual to UCB.

– Rather than requiring exemption percentages via EDI, the new system will require the net rate (residential or commercial) to be applied to the ESCO/NGS charges.

• After SAP cutover, GTOP sales tax change forms will no longer be accepted.

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Utility Combined Billing – Sales Tax Rate Changes

IMPORTANT CHANGE IMPACTING CUSTOMER ENROLLMENT

– After cutover to the new system, EDI Enrollment Transactions for UCB customers without sales tax rate information will be rejected.



• If a customer is totally exempt from sales tax, the ESCO/NGS should provide a zero rate in the EDI Enrollment Transaction (blanks will be rejected).

– For NY, DTF web site provides sales tax rates by street address (excluding school tax): http://www8.tax.ny.gov/JRLA/jrlaStart

• ESCO responsible for determining applicable school tax rate

– For PA, the current sales tax rate is 6% unless there’s a customer specific exemption or a customer is categorically exempt.

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National Fuel

Marketer Consolidated Billing (MCB)/Single Retailer

• In New York, MCB is currently billed on the Calendar Month Estimates (CMEs) of customers enrolled in this billing model.

• In SAP, ESCOs will be billed on the cycle readings for



• In SAP, ESCOs will be billed on the cycle readings for customers enrolled in this billing model.– Customer billing data will be provided to ESCOs based on the

customer’s cycle readings.

• CME billing detail will be discontinued.

– ESCOs will receive the customer’s cycle billing charges on their end of month summary invoices.

• ESCO level billing data will continue to be on the summary invoice which will include cycles 1-21 of the previous month.

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National Fuel

NY ESCO Contest Period Reinstatement Requests

• Will be automated using EDI Drop Transactions– Similar to ConEd’s implementation, the Incumbent ESCO will use the

“CHA” code to challenge a customer’s pending enrollment with another ESCO or return to utility sales service (subject to NY UBP rules).

– GTOP form will be retired.



– GTOP form will be retired.

• Related EDI Drop Changes:– ESCOs will have to stop using the “CHA” code for routine drops; use

“B38” code instead.

• ESCOs can use this code now – there’s no need to wait until the new system is implemented.

– Post implementation, a “CHA” code in absence of a pending enrollment will not drop the customer.

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PA Last-In Enrollment Requests

• SAP will have separate enrollment processing logic for

each state so it will no longer be necessary to process

last-in enrollments manually.

– After SAP cutover, GTOP Last-In Enrollment forms will no longer



– After SAP cutover, GTOP Last-In Enrollment forms will no longer

be accepted.

– EDI transactions (Accept/Reject responses) will be created by

SAP instead of being initiated manually.

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National Fuel

PA Last-In Enrollment Requests

• If two or more enrollments are received on the same

day…

– SAP “stacking rules” will accept whichever enrollment is

received latest.



received latest.

– NGSs should not use NY “CHA” code for Drops; “B38” should be

used instead.

• The PA method for the current NGS to cancel a pending enrollment to

another NGS is to submit another enrollment.

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National Fuel

Seamless Moves

• Customer requests to keep the same ESCO/NGS when they move

within National Fuel’s service territory (within the same state) are

currently handled through a manual process.

• After SAP cutover:




– At order entry, SAP will generate a new account number.

� In the current system, the new account number is not created until the new

account begins service.

– Using the new account number, customers may keep their current

ESCO/NGS when they move through a two step process.

1. The Customer provides the new account number to the ESCO/NGS.

2. The ESCO/NGS submits an enrollment request.

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National Fuel

Instant Connects (New Delivery Service)• Customer requests to choose an ESCO/NGS when they initiate new delivery

service (instead of starting with utility sales service) are currently handled through a manual process during service application.


– At order entry, SAP will generate a new account number.� In the current system, the new account number is not created until the new



� In the current system, the new account number is not created until the new account begins service.

– Using the new account number, customers may keep their current ESCO/NGS when they initiate service through a two step process.

1. The Customer provides the new account number to the ESCO/NGS.

2. The ESCO/NGS submits an enrollment request.

NOTE: Instant Connect Requests will be accepted until delivery service starts. If the ESCO/NGS submits the request after this date, it will be processed as a normal enrollment transaction and the customer will be switched to ESCO/NGS service at the next scheduled switching date.

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National Fuel

Impact to Gas Scheduling

Overall TSS scheduling operations will not change with

implementation of the new billing system.

• While problems are not anticipated with

implementation of the new interfaces between the



implementation of the new interfaces between the

Billing System and TSS there is a possibility that some

items, e.g. DDQs and Daily or Monthly processing

could be delayed.

– Patience during the initial periods of operation will

be greatly appreciated!

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National Fuel

DDQ Methodology Changes

• Adding Algorithm 0 (New Accounts) - DDQ's for new accounts will be based on system default values specific to rate classes until enough history is accumulated to trigger changing to appropriate algorithm.

• Algorithm 1 (BL, DDF calculation) - New SAP system allows



• Algorithm 1 (BL, DDF calculation) - New SAP system allows for expanded base load and degree day factors. May result in some larger heat sensitive accounts to be included in this algorithm.

• Algorithm 4 (AMD) - DDQ will be based on actual use for same gas day last week. Current method uses most recent gas day usage available for next day(s) DDQ.

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National Fuel

DDQ Methodology Changes

There will be no changes to:– Algorithm 2 (Avg. daily volume of most current billing

month available);

– Algorithm 3 (Avg. daily volume from same month last year);



year);

– Algorithm 5 (Accounts that have multiple meters with different algorithm basis);

– Mid course correction methodology;

– Degree day bucket methodologies;

– Applicable peak degree days for STBA, SATS, MMNGS services.

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National Fuel

EDI Testing

• NFG has minimized changes to its EDI implementation because except as noted, the EDI transactions exchanged after cutover will be identical to those currently exchanged.

– Where changes are being made, the resulting EDI transactions will implement business process changes reflected in other utility EDI



implement business process changes reflected in other utility EDI implementations.

• NFG is utilizing the expedited testing procedures contained in the NY EDI Standards.

– Internal EDI testing between NFG and its EDI Service Providers (“EDISP”) has been underway for a few weeks.

– External EDI testing between NFG’s EDISP and ESCO/NGS EDISPs (or with ESCOs/NGSs that provide their own EDI functionality) started last fall and will resume shortly.

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National Fuel

EDI Testing

– Under expedited testing, utilities need not test every EDI transaction with each individual ESCO/NGS.

• Since most EDI transactions are not being changed, retesting can be limited to the most critical changes, i.e. those related to sales tax.

• This approach will eliminate duplicative/redundant testing because a successful test with one of an EDISP’s ESCOs/NGSs means that NFG can



successful test with one of an EDISP’s ESCOs/NGSs means that NFG can exchange EDI transactions with the EDISP for any of its clients.

– ESCOs/NGSs will need to adjust their business processes and systems to accommodate the changes but such changes should not affect the EDI exchange between NFG’s EDISP and ESCO/NGS EDISPs .

• EDISPs will be expected to test changes, as necessary, with their ESCO/NGS clients.

• If an ESCO/NGS wishes to test with NFG, it should work through its EDISP.

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National Fuel

Website and Web file/Report Changes

• NFG is working to keep most file and report formats unchanged, but there are some changes that will be made.

– Account number will no longer have a separate 2 character



– Account number will no longer have a separate 2 character check digit. Account number will be 9 numeric characters.

• Some field lengths may increase/decrease on web files and reports to accommodate new naming conventions for billing components.

– Utility Tax Exempt Status will be provided via web files at SAP cutover.

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National Fuel

Cutover Gaps/Temporary Workarounds

Pre-Cutover Cancel/Rebill Volumes & Amounts for MCB/Single Retailer

• The transition from CME billing to Cycle billing of customer level charges results in a data complication impacting the cancel/rebill process.

• Where the cancel/rebill period crosses the cutover date for National Fuel’s



• Where the cancel/rebill period crosses the cutover date for National Fuel’s new billing system. – Post-Cutover cancel/rebill volumes and amounts for cycles and CMEs will be sent

via EDI.

– Pre-Cutover cancel/rebill volumes and amounts for CMEs will be sent via EDI.

– Pre-Cutover informational volumes and amounts for cycle periods will not be sent via EDI however volume adjustments will be provided via Web File E3.

– The details of this workaround have been posted in an SAP Bulletin.

– Obtaining customer meter reads prior to the SAP go-live date minimizes cancel/rebill and other transition issues, particularly for MCB ESCOs that bill customers on a cycle basis.

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National Fuel

Cutover Gaps/Temporary Workarounds

Allocation of Late Payment Charges (LPC) forNon-Purchase of Receivables (POR) Customers

• The system that calculates late payment charges on all customer bills is not allocating the portion of the LPC that belongs to the ESCO/NGS where the customer is non-POR.



belongs to the ESCO/NGS where the customer is non-POR.

• Until this is fixed, a potential manual calculation workaround has been identified which would be included in the payment to the ESCO/NGS.

– The workaround LPC amount will not initially be included in the EDI transaction provided to the ESCO/NGS.

– A non-EDI means of providing the LPC amount to the ESCO/NGS will be developed and posted in a bulletin.

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National Fuel

SUMMARY

• There may be additional changes affecting

ESCO/NGS transactions.



• NFG will continue to communicate these

changes as we become aware of them.– Check the New Utility Billing System Notices/Information

web page to stay current with the latest communications.

– Thank you for your patience and cooperation.

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spring 2016 master · 2016-03-08 · 17.3%warmer through 3/6/12** 0 1,000 2,000 nov dec jan feb mar...

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