Vector Pipeline TM
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TM Vector Pipeline Customer Meeting October 9, 2014 Overview TM Vector Pipeline • Welcome – Pete Cianci • Vector Update – Amy Bruhn & Matt Malinowski • DTE Update – David Slater Steve Hohf • Enbridge Update – Bruce Herdman • Discussion TM Vector Pipeline Amy Bruhn Manager, Transportation Services TM Vector Pipeline Vector Update Web Site Redesign Tariff Changes NAESB Abandonment Cost Recovery Mastio Survey TM Vector Pipeline Updated Website TM Vector Pipeline Tariff Changes • Force Majeure definition changed to be consistent with FERC policy • Reservation Charge Credits for Firm Service • Procedures for Posting and Awarding Capacity • Reservation of Capacity for Potential Expansion Projects TM Vector Pipeline NAESB Version 2.1 Standards • Published April 30, 2013 but not yet approved by FERC. Possible NOPR in the Spring with Fall implementation, including changes to the gas day • Location common codes eliminated and replaced with proprietary codes • Some field name changes • Behind-the-scenes data set changes TM Vector Pipeline Gas-Electric Coordination • Gas nomination schedule changing to improve coordination of natural gas and electricity markets. • Comments in response to FERC NOPR RM14-2-000 due November 28 TM Vector Pipeline The Gas Day is Changing Current FERC Proposal NAESB Proposal 9 a.m. Gas Day Start 4 a.m. Gas Day Start Nomination Gas Flow Nomination Gas Flow Nomination Gas Flow Cycle Timely 11:30 a.m. 9:00 a.m. 1:00 p.m. 4:00 a.m. 1:00 p.m. start of gas day Evening 6:00 p.m. 9:00 a.m. 6:00 p.m. 4:00 a.m. 6:00 p.m. start of gas day ID 1 10:00 a.m. 5:00 p.m. 8:00 a.m. 12:00 p.m. 10:00 a.m. 2:00 p.m. ID 2 5:00 p.m. 9:00 p.m. 10:30 a.m. 4:00 p.m. 2:30 p.m. 6:00 p.m. ID 3 4:00 p.m. 7:00 p.m. 7:00 p.m. 10:00 p.m. ID 4 7:00 p.m. 9:00 p.m. TM Vector Pipeline Abandonment Cost Recovery • The National Energy Board (NEB) issued its Reasons for Decision (RH-2- 2008) for the Land Matters Consultation Initiative (LMCI) Stream 3 in May 2009, whereby it required regulated Group 1 and Group 2 pipelines to file for future abandonment cost recovery mechanisms. • Vector’s physical abandonment plan was filed with the NEB, reflecting estimated future abandonment costs of $4.8 million ($CAN). • Vector’s proposed abandonment cost collection and set aside mechanisms was filed with the NEB on May 31, 2013 and approved on June 5, 2014. • Future abandonment costs are to be collected from shippers commencing January 1, 2015 over a period of 40 years and placed into a trust for safekeeping. • The abandonment surcharge is proposed to be CAN $0.0004 per GJ, but is still illustrative. It will be charged similar to the ACA surcharge. Filing of abandonment surcharge to be made with NEB by December 5, 2014. TM Vector Pipeline Mastio Customer Survey • Baseline Requirements – Items a company is expected to be competent in • Conscious Differentiators – Actively drive supplier selection decisions • Latent Differentiators – Correlate highly to customer satisfaction • Low Impact – Parity with competitors is sufficient TM Vector Pipeline Baseline Needs Firm gas transportation is highly reliable. Scheduled gas volumes are accurate. Timely transmittal of invoices. Competitive pricing of service. 1 2 3 4 5 6 7 8 9 10 Vector 2014 Vector 2012 Vector 2010 TM Vector Pipeline Conscious Differentiators Integrity of transportation provider. Accuracy of gas metering statements & invoices. Timely notification before initiating restrictions. Contract negotiations are handled efficiently. Historically dependable in meeting commitments. 1 2 3 4 5 6 7 8 9 10 Vector 2014 Vector 2012 Vector 2010 TM Vector Pipeline Latent Differentiators Ease of doing business. Timely resolution of problems. Ease of structuring credit arrangements. Personnel respond quickly to requests. Quality of pipeline initiated communications. Direct access to ample & diverse supply. Ease of use of Vector's website. 1 2 3 4 5 6 7 8 9 10 Vector 2014 Vector 2012 Vector 2010 TM Vector Pipeline Low Impact Operational information is readily available. Ease of pipelines system for nominating & reporting. Expertise of personnel. Ease of use of the QuickNom system. Straightforward capacity release system Easy to contact the right person for help. Representatives who listen well. Contract execution handled efficiently. 1 2 3 4 5 6 7 8 9 10 Vector 2014 Vector 2012 Vector 2010 TM Vector Pipeline Vector vs. The Industry Firm gas transportation is highly reliable. Scheduled gas volumes are accurate. Accuracy of gas metering statements &… Competitive pricing of service. Timely notification before initiating… Contract negotiations are handled efficiently. Operational information is readily available. Ease of system for nominating & reporting. Expertise of personnel. Straightforward capacity release system Personnel respond quickly to requests. Easy to contact the right person for help. Representatives who listen well. Quality of pipeline initiated communications. Direct access to ample & diverse supply. 1 2 3 4 5 6 7 8 9 10 Vector 2014 Industry 2014 TM Vector Pipeline Survey Action Plan We continue to seek areas where we can improve: • Posting monthly calendar of planned maintenance. • Additional training for the scheduling staff • Adding a back-up for the scheduling hotline TM Vector Pipeline Matt Malinowski Manager, Market Development TM Vector Pipeline Vector Update Year in Review Operations Expansion / Open Season Near Term Opportunities Vector Pipeline Average Dth/Day 1,000,000 1,200,000 1,400,000 1,600,000 1,800,000 2,000,000 200,000 400,000 600,000 800,000 - Oct-04 Jan-05 TM Apr-05 Jul-05 Oct-05 Jan-06 Apr-06 Jul-06 (Includes Longhaul, Shorthaul, Backhaul and and Segmentation) Backhaul Shorthaul, Longhaul, (Includes Oct-06 Deliveries Scheduled Jan-07 Apr-07 Jul-07 Oct-07 Canada Jan-08 Apr-08 Jul-08 Oct-08 U.S. Jan-09 Apr-09 Jul-09 Long Haul Capacity Oct-09 Jan-10 Apr-10 Jul-10 Oct-10 Jan-11 Apr-11 Jul-11 Oct-11 Jan-12 Apr-12 Jul-12 Oct-12 Jan-13 Apr-13 Jul-13 Oct-13 Jan-14 Apr-14 Jul-14 TM Vector Pipeline Winter 2013/14 Winter 2013/14 System Peak – 2,340 MDth January 7, 2014 Storage Wash 10 Bluewater DTE Gas APL/NBPL Rec - 1793 Rec - 547 St. Clair 195 58 22 455 Del - 1231 Guardian NIPSCO Jackson DTE Gas Consumers Del - 352 Del - 137 Del - 80 Del - 433 Del - 107 TM Vector Pipeline Operations TM Vector Pipeline 2014 Compressor Work Completed • Springville Unit #2 exchanged – Spring 2014 • Athens engine exchanged – Spring 2014 • Rebuilt exhaust stacks at Washington – Spring 2014 • Highland Compressor Assembly – September 2014 TM Vector Pipeline Washington Stacks Old vs New TM Vector Pipeline 2014 Pipeline Maintenance • Pipeline Integrity Work - 42-inch system – Competed in Canada in September – Currently occurring on U.S. 42-inch – Multiple sites for exposure and inspection – Verifying data from 2013 smart pigging TM Vector Pipeline 2014 Pipeline Maintenance TM Vector Pipeline 2014 Pipeline Maintenance TM Vector Pipeline Future Maintenance • Pipeline Integrity Work - 36-inch system – Scheduled for Nov. 10-14 – 5 to 8 sites for exposure and inspection – Verifying data from 2013 smart pigging – Reduced pressure required – Will impact firm! TM Vector Pipeline Future Maintenance • Springville Unit #1 – replace entire control system – Scheduled for November 2014 (2-3 weeks) – Older equipment no longer OEM supported – Eventually impacts all Springville and Highland engines – Also replacing engine due to runtime TM Vector Pipeline 2015 Proposed Work • Additional electronic upgrades throughout the system due to older equipment being obsolete • New SCADA system • Continue engine exchanges and other preventative maintenance • No impacts to Firm expected TM Vector Pipeline New Facilities TM Vector Pipeline Potential Interconnects • Greenfield South – New delivery in Ontario for a 300MW Power Plant – Commercial In-Service 2015 • Chicago Markets - 2015 – Provides direct access to large LDC market TM Vector Pipeline 2017 Expansion Vector TM Vector Pipeline Expansion Capabilities • Short Haul Lake Huron WISCONSIN MICHIGAN • Scalable Incremental Capacity • Lease Line Loop • Potential Compression Lake Michigan Washington ONTARIO Highland Dawn (Union) Detroit Chicago Athens Lake Erie Joliet Springville TM Vector Pipeline 2017 Expansion • Will physically expand the east side of Vector in a scalable project – Up to 54 miles of 42-inch loop between Milford Junction and Belle River – Potentially adding compression at Washington and Belle River – Other station upgrades as needed • Vector has a PA with Nexus and is working with ET Rover to be anchor shippers for a 2017 Expansion TM Vector Pipeline 2017 Expansion • New supply of 1.3 to 2.1 Bcf/d • Expiring Capacity on Vector will be reserved for this project: Date Capacity Available (Dth/d) Dec 14 – Mar 15 68,885 Apr 15 – Oct 15 78,885 Nov 15 75,885 Dec 15 – Mar 16 435,885 Apr 16 – Oct 16 431,028 Nov 16 456,600 Dec 16 – Mar 17 541,600 Apr 17 – Oct 17 566,028 Nov 17 capacity will be reserved for Nov 17 859,347 expansion TM Vector Pipeline Open Season • Currently conducting a Binding Open Season for capacity for November 2017 • All conforming bids will be considered including new supply receipts to Dawn, Joliet to Dawn and backhauls • Bids are due Tuesday, November 4th, 2014 by 4 p.m. ECT TM Vector Pipeline Timeline • Fall 2014 – Initiate Engineering and Environmental Field Surveys • Winter 2014 – Conduct Open Houses, Agency and Stakeholder Outreach • Winter 2014 – Begin FERC/NEPA Pre-filing process • Summer 2015 – FERC 7(c) Application • Spring 2016 – FERC issues EA or EIS • Fall 2016 – FERC issues certificate • Winter 2016 – Initiate Construction Clearing • Spring 2017 – Commence Construction • November 2017 – Target In-Service Date TM Vector Pipeline Available Capacity TM Vector Pipeline Capacity • 68,885 Dth/d available Dec.