2016 Millennium Shipper Meeting - Millennium Pipelinemillenniumpipeline.com/wp-content/uploads/2017/01/... · 2016 Millennium Shipper Meeting. Vision ... Georgia Carter – ... Potential

Connecting communities

to cleaner energy

Welcome– Joe Shields

2016 Millennium Shipper Meeting

Vision

To become the premier pipeline in the Northeast

To attain the highest customer service rating

To attain the highest reliability rating

To bring added value to customers contracts

To provide quality staffing to meet our customer’s needs

Connecting communities to cleaner energy 2

Our vision is to provide you with the best customer experience

2016 In Review

TransCanada Pipelines acquires Columbia Pipeline Group Millennium ownership interest is unchanged

TransCanada – 47.5%

DTE – 26.25%

National Grid – 26.25%


Ownership change is transparent to your service

2015 Customer Survey Actions

Increased communication through customer newsletter and customer conference calls

New and additional staff

On-going and direct communications with the Navigates team


We use your feedback. Please continue to participate in

the survey process.

Millennium Organization

Joe Shields -President

Ron Happach –Chief Operating

Officer

Mike Armstrong Director – PM

Randy Parker –Project Mgr

Bruce Page –Project Mgr

Patrick Riban –Mgr System

Design

Steven Leggett –Project Acct

Rick Gardner –SVP Business Development

Michelle Brocklesby –

Director Optimization

Riochi Giles –Business Analyst

Jeff Reavis – MgrOptimization

John Keith – VP Finance & Controller

Audrey Bottari –Executive Admin

Asst

Cynthia Castro –Staff Accountant

Georgia Carter –VP & General

Counsel

Christina Woodward –

Records Mgmt

Michelle Hook –Director Outreach

Erin Fennell –Executive Marketing Assistant


2016 Customer Survey

2016 Energy Insights Customer Survey conducted by Wayne Rechnitz

90% participation rate

Thank you to all those who took the time to provide feedback

This is the best tool we have to measure how well we are meeting customer needs

70% of the participants agree that Millennium Pipeline provides exceptional service, 1% disagree

78% of the participants agree that Millennium Pipeline is committed to improving its customer relationships, no one disagrees

53% of the participants agree that Millennium provides better service than other pipelines, up from 27% percent last year


We have listened to feedback and strive to improve

Customer Survey Results


Mid/

Bk Office

Noms & Sched/

Navigates

Senior Mgnt/

Biz Dvlpmnt

General Commercial Overall

AverageGas

Control

8.38.0

7.77.6

8.0 8.2 8.0

2014

2015

2016

2016 Themes – Opportunities for improvement

A stronger relationship between Millennium and its interconnected pipelines is desired Better communication about operational challenges

Confusion on cuts

Reliability and lack of flexibility Intraday cuts impact production

Less flexibility on where gas can be shipped

Navigates Improved, but information is difficult to obtain

Confusion in regards to cuts

Concern over viability of expansion projects given the regulatory climate Customers are willing to help in any way possible

Expansions are critical to customer success


The Millennium team is developing a plan and will report

back in the newsletter

Ron Happach

Operational Update

O&M Construction Projects

Major 2016 Mainline Work - Completed

Corning CS – Turbine replacement

Minisink CS – Additional station piping testing, installation of vessels and station valving

Hancock CS – Turbine repair and maintenance

Major 2016 Mainline Work – Still Remaining

Potential cleaning pig run from Corning to Bush Hill to coincide with major work at Bluestone

Major 2017 Planned Mainline Work

Add Launcher / Receiver near Stagecoach Interconnect

Reduces run time for pigging activities

ILI Runs

Corning to Bush Hill

Westtown to Ramapo

Minisink turbine change-outs (2 units)


Reliable Firm Service

Customers experienced ONE interruption in service 60,000 dth impact to eastern deliveries

Outage due to:

Scheduled maintenance at Minisink

Unplanned outage on another pipeline


Firm service has been reliable – flexibility has presented a

challenge

“The 24” Pipeline Section”


Four Year Supply History


Supply continues to increase, bringing value to Millennium shippers

Four Year Interconnect History


2015/2016 Winter Flow Summary


Direct connected markets average ~200 MM

2016 Summer Flow Summary


Direct connected markets average ~165 MM

Michelle Brocklesby

Commercial Update


Customer Service Reorganization

MPC Customer Service team Missy McNamara

Teri Pollack

Ebere Bolton

Contracts Keri Crawford

Gas Control Charleston, WV


Navigates Changes

Nov 2015 Gas/electric coordinate background

processes

Begin phased implementation of point consolidation (one receipt/delivery point)

Scheduling process improvements

2016 Point consolidation completed

Pool tolerances set to zero


Firm Transportation


• Ramapo capacity

provides flexibility for

Wagoner deliveries

Three Year IT History


Significant drop in IT volumes 2015 to 2016

Factors impacting IT

• Warmer winter

• Higher load factor on

firm capacity

• AIM construction

• MPC maintenance

Two Year East Pool Volume History


East pool liquidity on the rise in 2016

Tariff Changes Fuel

April 1 - Retainage rate of 0.512% established September 1 - Zero fuel rate becomes effective We continually evaluate fuel retention The expectation is that it will be returned to approximately the same rate (0.512%)

Clean Up Clarifications to the sale and purchase of operational gas Negotiated commodity, fuel, and surcharges for capacity releases Discretionary waivers

Coming soon – Section 4 restructuring

All concepts have had support and have been approved by FERC on other pipelines such as Columbia Gas Transmission

Providing more flexibility for contracting available capacity

Lining up MPC’s Section 4 with other previously accepted Section 4s

Mapping of changes coming soon

Spot pricing New rate schedules – LFT (lateral firm transport), LIT (lateral interruptible transport) Customer meetings, conference calls to discuss all filings


Our goal is to make it easier for customers to conduct business

Available Capacity

November 1 - West side capacity available 42,500 dth/day Stagecoach to Empire

50,000 dth/day Stagecoach to Dominion

10,000 dth/day Stagecoach to Arlington

April 1 - West side capacity available 10,000 dth/day Stagecoach to Empire

As we did this past year – review ability to delivery additional capacity to Holding Point


If interested in available capacity – please contact

Michelle Brocklesby

Rick Gardner

Business Development

Valley Lateral Project Description

7.9 Mile 16” Lateral to CPV’s Proposed 650 MW Combined Cycle Power Plant

Reduces regional dependency on older less efficient power plants

Improves electric pricing for New York energy consumers

Competitive Power Ventures is the sole customer


New market directly attached to Millennium – up to 127,200 dth/d

Valley Lateral Project Regulatory Status


We anticipate a FERC order on Valley Lateral in October Construction will be conditioned on receipt of

Clean Water Act authorizations

NYSDEC decision on MPC’s 401 Water Permit due by Nov. 23, 2016 We have met all Clean Water Act standards

Valley Lateral Project vs Constitution Also greenfield, but much smaller - 7.8 miles of

16-inch pipeline

Will cross most streams and wetlands by trenchless method

Will serve gas fired generation facility that received air/clean water permits from NYSDEC

ESU Project Overview


Eastern System Upgrade (ESU)

Increases capacity between Corning and Ramapo by approximately 220,000 Dth/day

Customers are Northeast Utilities

Customers are seeking diversity of supply

Increased supply at Ramapo benefits both New York and New England energy consumers

Ramapo is a major supply point for New York State utilities and power plants


Millennium will be posting the remaining capacity shortly –

20,500 Dth

Outlook for ESU Project


FERC Authorizations Filed July 29, 2016 after six months in pre-filing;

July 2017 approval requested.

Initial comments on ESU at FERC relatively light.

NYSDEC Authorizations Need air and 401 Water Permits from NYSDEC.

NYSDEC must act on MPC’s 401 Water Permit by July 2017.

No statutory deadline for action on air permits.

ESU vs Constitution 7.8 miles of looping along existing ROW

Adding compression at existing station; also constructing new station

Market pull

ESU Highland Compressor Station


Millennium strives to be a good neighbor, >.5 mile to nearest residence

Other Potential Projects

Additional deliveries to Ramapo based on customer demand Ability to construct an incremental 300,000 Dth/d at approximate system rate

Expand interconnect with Dominion at Holding Point Preliminary investigation

Changes in piping, addition of filter separator

Estimated capital is within our blanket FERC authority

Capacity 100,000 Dth/d

Expand interconnect with Empire at Corning Preliminary investigation

Change in piping

Estimated capital is within our blanket FERC authority


Millennium strives to provide cost-effective supplies to the market

Break

Georgia Carter

Regulatory Update

We Operate in Interesting Times


FERC at a crossroads

Under fire from environmentalists

Down to three Commissions

Two Republican vacancies

Impacts of a new administration?

Natural gas facing political challenges in NY

Will air and water permits be issued?

What is happening with the Constitution litigation?

At issue: How broad is a state’s authority under the Clean Water Act?

What does this mean for Millennium projects?

NY Regulatory Environment for 2016 Projects


Difficult year in New York for natural gas projects.

NYSDEC rejected Constitution’s 401 Water Permit on Earth Day. Constitution immediately appealed the NYSDEC rejection to the 2nd

Circuit.

Briefs filed in September & October; oral argument set for Nov. 16.

NYSDEC has not acted on air permits for Iroquois & Dominion projects

Both have had FERC approval for months.

No deadline for states to act on Clean Air Act applications.

NGA gives pipelines a remedy at the DC Court of Appeals for a state’s failure to act.

Iroquois has filed at DC Court of Appeals to compel NYSDEC action

Dominion has not pursued a remedy in court at this time.

Uncertainty over 401 Water Permits pending at NYSDEC. Clean Water Act requires state action no later than 1 year after

application.

NYSDEC decision on Algonquin’s Atlantic Bridge 401 Water Permit due 11-18-16 and on MPC’s Valley Lateral Project on 11-23-16.

The next 12 months will tell us a lot.

John Broyles

New York ISO

Questions on any topics?

Documents

2016 Millennium Shipper Meeting - Millennium Pipelinemillenniumpipeline.com/wp-content/uploads/2017/01/... · 2016 Millennium Shipper Meeting. Vision ... Georgia Carter – ... Potential