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 capacity available Nov 1 – 47,500 dth/day Stagecoach to Empire – 50,000 dth/day Stagecoach to Dominion West side capacity available Mar 1 – 10,000 dth/day Stagecoach to Empire
37 Ready for Winter Changes designed with YOU in mind – More flexibility – More stability – Streamlined decision-decision making processes – Improved communications Winter Arsenal – Storage – Buying/selling gas
38 Growth Projects
Mark Bering VP Business Development
39 Ramapo Expansion
Millennium is expanding mainline capacity to Ramapo and other east end delivery points
Ø More than 200,000 Dth/d of binding contracts with anchor shippers and open season participants
Ø Currently finalizing design • Combination of looping and compression
Ø FERC Pre-Filing Q4 2015
40 Valley Lateral Project
Ø Lateral to serve CPV Valley Energy Center • New 650 MW combined cycle power plant • Located in Wawayanda, NY • Within the NYISO Lower Hudson Valley new capacity zone • Target in service date of November 2017
Ø Approximately 7.8 mile lateral to transport at least 127,200 Dth/d
Ø FERC pre-filing requested April 30, 2015, received May 19, 2015
Ø Target in service date for the lateral is April 2017
CPV Valley adds 35 Bcf/year of demand to Millennium
41 CPV Valley Energy Center - Location
42 Future Expansions
Ø Additional interest in Millennium transportation from the market • Accesses low priced Marcellus supply • Good connectivity to interstate pipelines and Northeast markets • Interest from LDC’s and power generation
Ø Eastward Expansions • Additional expansion capability to Algonquin • Ability to get to Constitution very affordably • Expansions are scalable
Ø Westward Expansions • Ability to expand to Empire at Corning or Dominion at Holding Point
43 Questions?
44