6Th Annual Customer Meeting Presentation
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Millennium Pipeline Company, L.L.C. 6th Annual Customer Meeting October 14, 2015 Joe Shields President 1 Welcome 2 Presenters ◆ Ron Happach – Chief Operating Officer, Millennium Pipeline ◆ Michelle Brocklesby – Director of Optimization, Millennium Pipeline ◆ Mark Bering – VP Business Development, Millennium Pipeline ◆ James Eckert - VP Commercial Operations, Columbia Pipeline Group ◆ Nikki Bruno – Director, Business Development, Spectra Energy 3 Vision 4 Vision Ø Millennium Pipeline to become the Premier Pipeline in the Northeast Ø Millennium Pipeline to achieve the highest Customer Service Rating Ø Millennium Pipeline to achieve the highest Reliability Rating Ø Millennium Pipeline to bring Added Value to Customer Contracts Ø Aid in growing customer business by bringing value to meet customer needs Ø Quality, Experienced Staffing 5 Customer Service 6 Customer Service Survey Overview Ø Customer surveys conducted in August and September Ø Survey managed by Wayne Rechnitz of Energy Insights Ø Survey categories for Executive, Commercial, Scheduling, Gas Controls, and Back/Middle Office Ø THANK YOU to all those that participated Ø Final Results of survey to be released late October 7 Preliminary Survey Results Ø Flexibility Ø Communication Ø Reliability Ø Navigates Ø Decision Making Ø Ron Happach is a Super Star 8 Organization 9 Organizational Changes Millennium Pipeline Company, L.L.C. Management Organization Structure - 2015 Joseph P. Shields * President Erin Fennell Executive Marketing Ron Happach * Assistant Chief Operating Officer Michael Armstrong Michelle Mark Bering * John V. Keith * Gary Kruse * Director of Project Brocklesby VP Business VP Finance & VP General Mgmt, Operations Director Development Controller Counsel & & Engineering Optimization Secretary Randy Parker Jeff Reavis Christina Project Manager Optimization Audrey Bottari Woodburn Manager Executive Cynthia Castro Administrative Staff Accountant Records Mgmt/ Assistant Contract Admin Executive Officer * Detailed Org Chart Full Time Employees – 13 7/22/15 10 Organization Millennium Pipeline Company LLC – DTE Energy - 26.25% – National Grid/Keyspan – 26.25% – Columbia Pipeline Group – 47.5% Columbia Pipeline Group Services Provided: – Gas Control/Operations – Customer Service – Navigates Support – Finance and Accounting Support 11 To Summarize… ◆ Millennium Pipeline is improving but we have a lot of work to do ◆ Millennium is well positioned to see continued progress toward our vision of becoming the premier pipeline in the Northeast 12 Millennium Pipeline Overview Ron Happach Chief Operating Officer 13 Reliability Ø “Reliability” was emphasized last year and will be continued to be emphasized, evaluated and measured Ø How is Reliability being defined Ø FT -1 flows / scheduled is 100% Ø FT2 & IT only sold when there is no impact on FT-1 Ø Facilities Physically Available to Flow Volumes Ø Strong Operations Team Ø No FT-1 Cuts Last Year Except for Force Majeure Ø FT2 and IT continues to be very limited 14 Reliability (continued) Ø Millennium Pipeline Facilities Ø 244 Mile Single Barrel Pipeline Ø ~ East of Corning 182 Miles of 30” Pipeline and 18 Miles of 24” Ø 3 – Compressor Stations Ø Corning - Mars 100 (15,900 HP) Ø Hancock – Mars 100 (15,900 HP) Ø Minisink – 2 Centaurs ( 6,130 HP / each) Ø ~ West of Corning ~ 44 Miles of 12” Pipeline Ø ~ Average Volumes 2014 / 2015 – 1.2 to 1.3 Bcf / day Ø Millennium’s Pipeline System is Being Highly Utilized Year Around Particularly Starting at Corning and Going East 15 Millennium Map 16 Wagner East Utilization for 2015 YTD Wagoner East 800,000 700,000 600,000 500,000 400,000 300,000 200,000 Pigging 100,000 0 11/1/2014 12/1/2014 1/1/2015 2/1/2015 3/1/2015 4/1/2015 5/1/2015 6/1/2015 7/1/2015 8/1/2015 9/1/2015 17 Reliability (continued) Ø How Do We Mitigate Issues When They Occur? Ø Work Closely and Communicate Daily with Our Major Interconnected Pipelines (TGP, NFG, CW, Williams, DTE, Algonquin, etc.) ØCommunication and Working Together During Outages Goes Both Ways, and All Parties Have Worked Well To Insure Customers’ Gas Flows Ø Be Prepared for the Unexpected Ø Constantly Monitor and Re-evaluate the System Ø Strong Operations Team Ø Experienced / Dedicated 18 Reliability (continued) Ø Force Majeure (“FM”) / Pipeline - Compressor Maintenance Ø Force Majeure - Experienced Liquid Contamination Last February Upstream of the Hancock CS ØContamination was a Black, Oily Substance Consistency of Lubrication Oil, Kerosene and Glycol ØHancock CS was Shutdown on Several Days Due to Change Out Replace Filters in Filter Separators ØDeclared FM on 4 Days Reducing Capacities Between 75,000 Dth / d to 231,000 Dth / d Ø All Receipt Points Have Filter Separator Facilities 19 Reliability (continued) Ø Additional Actions Being Taken To Prevent Further Re- Occurrence of Pipeline Contamination ØReviewed ALL Receipt Locations for Properly Designed Filter Separators, Controls and Monitoring Equipment ØInstall Additional Filter Separators, Controls and Monitoring at Various Millennium Tap Locations Over the Next 2 Years ØWhere Filter-Separation Already Exists At the Tap Location, Install Additional Controls and Monitoring (e.g. Positioners and Seals on FS By-pass Valves) ØEvaluate Installing Additional Pig L/Rs to Minimize Pig Run Times (e.g. DOT requires periodic smart pig runs) 20 Reliability (continued) Ø Pipeline / Compressor Maintenance Mitigating Measures Ø Schedule Activities to Correspond with Other Interconnecting Pipeline Activities to Minimize Overall Impact to Customer Ø During Maintenance Activities Where Significant Flows Were to be Impacted; Millennium Bought Gas At to Keep Customers Whole (e.g. Chemical Pig Cleaning Runs Last April ) Ø Millennium Bought Storage to Help w Operational Issues 21 Customer Feedback Ø Reliability (Discussed Above) Ø Includes Lack of Operational Flexibility – Highly Utilized Single Barrel Pipeline Ø Ownership Ø Who Do Customers Call When There are Issues Ø Jeff Reavis – Manager, Hub Optimization – Cell: (281) 453 - 5307 Ø Michelle Brocklesby – Director, Optimization – Cell: (214) 476 - 2442 Ø Ron Happach – Chief Operation Officer – Cell: (816) 885 - 7632 Ø Communication Ø Better Communication With Customers ØQuarterly Meetings Ø Better Communications Internally 22 The Year in Review Michelle Brocklesby Director of Optimization 23 Changes Personnel Tools Flow 24 Personnel Jeff Reavis – Manager, optimization Mike Armstrong – Director, Project Management Randy Parker – Project Manager Customer Service Team 25 1st Implementation of the VIC Voluntary Interruption Credits A tool for you to utilize that will help to minimize the impact of planned outages 1st implemented during pigging of the mainline in April Maximize reservation credits during an outage by NOT nominating The less you nominate, the more credit you receive No upper limit on what you can bid 26 Tariff Changes Sent out for 30-day customer commentary in August Filed in September Forms – allowing for electronic forms of communication and confirmation Streamlined forms 27 Navigates Changes July 2015 – technology upgrade, better performance Sept 2015 – Operationally available capacity – Nomination upload template – Improvements to measurement data processings Nov 2015 – Gas/electric coordinate background processes – Begin phased implementation of point consolidation (one receipt/delivery point) – Scheduling process improvements 2016 – continued improvements and enhancements 28 2015 RAM RAM Component Projected Volumes as per Review of first 6 months of RAM filing MDth 2015 Current Fuel 2,400 Fuel quantities are at projected levels. Millennium continues to monitor the data and operational changes resulting from the use of its new system Current LAUF 430 LAUF for the first ½ of 2015 is at projected levels. RAM under-recovery surcharge 161 Under-recovery balance is being reduced as expected. Throughput 504,000 Throughput is on pace to meet projections. Maintaining current RAM rate through March 2016 Anticipate overall RAM rate in the range of 0.5% to 0.7% in 2016 29 3 Year Supply History 30 3 Year Demand History 31 East Pool Trading East Pool Volumes 1,200,000 1,000,000 800,000 600,000 MMBTU 400,000 200,000 0 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Month 32 IT Volumes IT Volumes 8,000,000 7,000,000 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 0 Nov Dec jan feb mar apr may jun jul aug sep 2014 2015 Over 6.5 bcf less IT moving on Millennium in 2015 33 Winter 2014/15 Flow ( last year) Holding Point Corning 169 MM Avg. 203 MM Avg. (-157) 235 MM Peak 256 MM Peak (-95) Independence 31 MM Avg. (-31) Wagoner 57 MM Peak (-37) Stagecoach Bluestone 48 MM Avg. (+10) 627 MM Avg. (+44) 446 MM Avg. (+211) 99 MM Peak (+15) 760 MM Peak (+59) 398 MM Peak (+116) Laser 298 MM Avg. (+97) 325 MM Peak (+42) Ramapo 725 MM Avg. (+130) 842 MM Peak (+142) 34 Summer 2015 Flow (as of 9/30) Corning Holding Point 164 MM Avg. (-79) 220 MM Avg. (+116) 234 MM Peak (-27) 235 MM Peak (+42) Independence 36 MM Avg. (-18) Wagoner 43 MM Avg. (-7) 46 MM Peak (-40) Stagecoach Bluestone 114 MM Peak (+53) 617 MM Avg. (+34) 486 MM Avg. (+207) 755 MM Peak (+74) 570 MM Peak (+178) Laser 275 MM Avg. (-38) 324 MM Peak (-43) Ramapo 751 MM Avg. (+44) 850 MM Peak (+20) 35 Firm Service Interruptions No cuts to FT1 with the exception of the force majeure FT2 highly limited Winter 2014/Summer 2015 and only be sold when it has no effect on FT1 36 Capacity Increase in capacity at Holding Point (Dominion) interconnect from 235,000 dth/day to 250,000 dth/day West side