Millennium Pipeline Company, L.L.C.
5th Annual Customer Meeting October 8, 2014
Joseph P. Shields President
1 Welcome!
2 Our Speakers
3 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
5 Vision
6 Reliability
Firm transportation flows 100%
FT2 & IT only sold when there is no impact on FT-1 contracts
Strong operations team
7 Communication
No surprises!
Customers see FERC filings 30 days before FERC sees them
8 Customer Service
Dedicated MPC customer service team
2014 Customer Survey
9 Bring Value to our Customers
Producers
LDCs
Marketers
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Organizational Chart
Joseph P. Shields * President
Audrey Bottari Executive Administrative Assistant
Mark Bering * Michelle Brocklesby James Ransom John V. Keith * Gary Kruse * VP Business Development Director Optimization Director of Pipeline VP Finance & Controller VP General Counsel & Operations Secretary
Laura Cosenza Christina Woodburn William Nyahay Christopher Estep Office Administrator Records Management/ Director Market Analysis Director of Marketing Contract Administrator
Executive Officer * Detailed Org Chart 10/1/14
11 Millennium Pipeline Today
Dominion Holding Point 200 MM Del Hancock Compressor Station
Ramapo 500 MM Rec Corning 850 MM Del 500 MM Rec 350 MM Del
Wagoner TCO Interconnect 115 Rec/Del
12 Fuel
13 Review of Millennium RAM Activity for First Six Months of 2014
Projected Volumes as per RAM RAM Component Filing MDth Review of First Six Months of 2014
Fuel quantities are exceeding projected levels. Current Fuel 1,400 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 Under-Recovery balance is being reduced as 1,304 Surcharge 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.
14 Current Expectations for 2015 RAM
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
15 To Summarize…
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
16 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
Jointly owned by NiSource, National Grid and DTE Energy
Extends 220 miles across the southern tier of New York state
Multiple receipt Northeast Marcellus points for Marcellus Production production
Interconnects with National Fuel, Empire, Dominion, Columbia, Algonquin and local NY markets
Access to storage
18 System Configuration in 2014
C H
M
19 The Supply Picture
1,400,000
1,200,000
1,000,000
Bluestone 800,000 Laser Independence 600,000 Stagecoach
400,000
200,000
- Nov-12 Nov-13 Aug-14
20 And Our Markets
Nov-12 Nov-13 Aug-14
21 Millennium LDC City Gates
80,000
70,000
60,000
50,000 Central Hudson 40,000 Orange & Rockland
30,000 NYSEG
20,000
10,000
-
22 Flows from Winter 2013/14
Corning 340 MM Avg. 351 MM Peak
Independence 62 MM Avg. Wagoner 94 MM Peak 38 MM Avg. Stagecoach Bluestone 84 MM Peak 583 MM Avg. 235 MM Avg. 701 MM Peak 282 MM Peak Laser 201 MM Avg. 283 MM Peak Ramapo 595 MM Avg. 700 MM Peak
23 Flows this Summer
Holding Point 104 MM Avg. Corning 193 MM Peak 243 MM Avg. 261 MM Peak
Independence 54 MM Avg. Wagoner 86 MM Peak 50 MM Avg. Stagecoach Bluestone 61 MM Peak 583 MM Avg. 279 MM Avg. 681 MM Peak 392 MM Peak
Laser 313 MM Avg. 367 MM Peak Ramapo 707 MM Avg. 830 MM Peak
24 Diversity of Supply on Millennium
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
25 Millennium Accesses Low Priced Marcellus production
$/MMBtu Winter 2013/2014 Daily Spot Prices $90
$80
$70
$60
$50 Millennium East Iroquois $40 Algonquin Dawn $30
$20
$10
$0 1-Nov-13 1-Dec-13 1-Jan-14 1-Feb-14 1-Mar-14
26 Pipeline Constraints Impact Northeast and Dawn markets
Capacity Constraints
Millennium East Pool
27 Future Expansions to Constrained Markets
Capacity Constraints
Millennium East Pool
28 Expansion Opportunities
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
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Supply / Market Growth Potential
30 Improving Customer Service & Communication
31 Tariff Changes Summary
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
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Reservation Charge Credits
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
33 Reverse Open Season Process
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
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Customer Survey Goals
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
35 Customer Survey Overview
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
36 Preliminary Survey Results
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!
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Thank You For Your Business!
For more information, please contact:
Mark Bering VP Business Development [email protected] 845-620-0147 Work 313-404-5567 Cell
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