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National Fuel Gas Distribution Corporation Spring 2016 Marketer/Supplier Teleconference March 9, 2016
AGENDA
1:00 pm Welcome and Roll Call Dave Wolford
1:15 pm Operational Update Dave Wolford
o Gas Nomination Timeline Changes
1:45 pm Capacity Update Bob Michalski
2:00 pm Rates & Regulatory Update Mike Novak
o Federal Regulatory Update o NY Regulatory Update o PA Regulatory Update
2:30 pm New Utility Billing System Implementation Mike Novak
2:45 pm General Discussion All
3:00 pm Closing Dave Wolford
National Fuel
National Fuel Gas Distribution Corporation
Spring 2016 Marketer/Supplier
Teleconference
Operational UpdateOperational Update
Presentation by: Dave Wolford
March 9, 2016
1
National Fuel Transportation CustomersTransportation Customers
STAND-ALONE CUSTOMERS
MONTHLY (MMT) –
New York 1
Pennsylvania 0
DAILY (DMT) –
New York 0
Pennsylvania 73
TOTAL 74
AGGREGATION CUSTOMERS
TOTAL NFGDC 143,552
New York (STBA) 113,143
New York (DMT) 35
Pennsylvania (MMNGS) 3,177
Pennsylvania (SATS) 27,123
TOTAL 143,478
2
National Fuel
80,000
100,000
120,000
140,000
Nu
mb
er o
f C
ust
om
ers
National Fuel Gas DistributionNY STBA Enrollment
ResidentialNon-ResidentialTotal
0
20,000
40,000
60,000
80,000
Sep
-05
Mar
-06
Sep
-06
Mar
-07
Sep
-07
Mar
-08
Sep
-08
Mar
-09
Sep
-09
Mar
-10
Sep
-10
Mar
-11
Sep
-11
Mar
-12
Sep
-12
Mar
-13
Sep
-13
Mar
-14
Sep
-14
Mar
-15
Sep
-15
Mar
-16
Nu
mb
er o
f C
ust
om
ers
3
National Fuel
20,000
25,000
30,000
35,000
Nu
mb
er o
f C
ust
om
ers
National Fuel Gas DistributionPA SATS Enrollment
Residential
Non-Residential
Total
0
5,000
10,000
15,000
20,000
Sep
-10
No
v-10
Jan
-11
Mar
-11
May
-11
Jul-
11S
ep-1
1N
ov-
11Ja
n-1
2M
ar-1
2M
ay-1
2Ju
l-12
Sep
-12
No
v-12
Jan
-13
Mar
-13
May
-13
Jul-
13S
ep-1
3N
ov-
13Ja
n-1
4M
ar-1
4M
ay-1
4Ju
l-14
Sep
-14
No
v-14
Jan
-15
Mar
-15
May
-15
Jul-
15S
ep-1
5N
ov-
15Ja
n-1
6M
ar-1
6
Nu
mb
er o
f C
ust
om
ers
4
National Fuel
2,000
2,500
3,000
3,500
Nu
mb
er o
f C
ust
om
ers
National Fuel Gas DistributionPA MMNGS Enrollment
TotalResidentialNon-Residential
0
500
1,000
1,500
2,000
No
v-07
Mar
-08
Jul-
08
No
v-08
Mar
-09
Jul-
09
No
v-09
Mar
-10
Jul-
10
No
v-10
Mar
-11
Jul-
11
No
v-11
Mar
-12
Jul-
12
No
v-12
Mar
-13
Jul-
13
No
v-13
Mar
-14
Jul-
14
No
v-14
Mar
-15
Jul-
15
No
v-15
Mar
-16
Nu
mb
er o
f C
ust
om
ers
5
National Fuel
85.4 87.0
80.3
91.2
99.9 94.6
80.0
100.0
120.0
NEW YORK12 Month Totals
(Through December 2015) Throughput Transported
42.7 43.5 41.6 46.9
51.9 49.4
0.0
20.0
40.0
60.0
2010 2011 2012 2013 2014 2015
BC
F
6
National Fuel
41.1 42.1 39.5
45.2
49.9
46.3
28.3 30.0
40.0
50.0
PENNSYLVANIA12 Month Totals
(Through December 2015) Throughput Transported
18.7 21.1 21.3
25.3
28.3
26.0
0.0
10.0
20.0
30.0
2010 2011 2012 2013 2014 2015
BC
F
7
National Fuel
126.5 129.1
119.8
136.4
149.7
140.9
100.0
120.0
140.0
160.0
NFGDC YEARLY DELIVERIES12 Month Totals
(Through December 2015) Throughput Transported
61.4 64.6 62.8
72.2 80.2
75.4
0.0
20.0
40.0
60.0
80.0
2010 2011 2012 2013 2014 2015
BC
F
8
National Fuel
50.0% 50.0%51.8% 51.4% 52.0% 52.2%
40%
50%
60%
NYTRANSPORTATION PERCENTAGE
OF 12 MONTH DELIVERIES
0%
10%
20%
30%
Dec-10 Dec-11 Dec-12 Dec-13 Dec-14 Dec-15
9
National Fuel
45.4%
50.1%53.9%
56.1% 56.7% 56.1%
40%
50%
60%
PATRANSPORTATION PERCENTAGE
OF 12 MONTH DELIVERIES
0%
10%
20%
30%
Dec-10 Dec-11 Dec-12 Dec-13 Dec-14 Dec-15
10
National Fuel
48.5% 50.1%52.5% 52.9% 53.6% 53.5%
40%
50%
60%
NFGDC TRANSPORTATION PERCENTAGE
OF 12 MONTH DELIVERIES
0%
10%
20%
30%
Dec-10 Dec-11 Dec-12 Dec-13 Dec-14 Dec-15
11
National Fuel
Marketer/Supplier Operations SupportMarketer/Supplier Operations Support
• NFGDC provides a full range of business tools and support services:
– NFGDC Website:
http://www.nationalfuelgas.com/marketers/default.aspx
– Operating Procedures Manuals:
• GTOP, TSS, TSS Reports, Aggregator, Market Pool, Production Pool
– Transportation Scheduling System – TSS– Transportation Scheduling System – TSS
– Training
– Help Desks
• Scheduling: 716-857-7232 email: [email protected]
• Billing: 716-857-7432 email: [email protected]
– After Hours Scheduling Support: 716-857-7232
12
National Fuel
New York & Pennsylvania OperationsNew York & Pennsylvania Operations
• Daily Delivery Quantities (DDQs)
– DDQs are customer usage estimates based on usage history, weather
forecasts, actual measurement
• Customer usage estimates need to be as accurate as possible
• Meet daily delivery requirements (DDQs) to serve marketMeet daily delivery requirements (DDQs) to serve market
• Production Daily Quantities (PDQs)
– PDQs are estimates of local production based on production volume
history
• Local production estimates need to be as accurate as possible
• Deliver upstream supplies at primary firm or acceptable alternate
delivery points
13
National Fuel
New York & Pennsylvania OperationsNew York & Pennsylvania Operations
• Market Pool and Production Pool operators are responsible for monitoring
actual flowing volumes and adjusting DDQs and PDQs via TSS
• Monitor storage inventories
– Required end of month storage inventory percentages are minimums,
not targets
• REMINDER: National Fuel provides PA DMT pool operators, and requesting • REMINDER: National Fuel provides PA DMT pool operators, and requesting
customers, with official notification of instances of missing or incomplete
customer telemetered readings via the daily Customer Transportation
Statements (CTS).
– The following statement appears at the bottom of each CTS:--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|NOTE:WHEN 'USAGE EST.' IS SHOWN UNDER THE STMT BASIS COLUMN ON THIS REPORT, IT IS THE MARKET POOL OPERATOR'S RESPONSIBILITY TO OBTAIN A |
| 10:00 A.M. READ DIRECTLY FROM THE CUSTOMER. THIS READ SHOULD BE E-MAILED TO [email protected]. THIS IS A PA GTOP REQUIREMENT.|
---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
14
National Fuel
SYSTEM MAINTENANCE ORDERSSYSTEM MAINTENANCE ORDERS
* TO MAINTAIN SYSTEM OPERATIONAL INTEGRITY *
• SYSTEM ALERT
• OFO
• UNAUTHORIZED OVERRUN
• CURTAILMENT
15
National Fuel Operational Update
Winter 2015 – 2016(Gas days inclusive)
• System Alerts – 2 Warm Weather
• December 12-14
• December 21-27
– 1 Cold Weather
• February 11-14• February 11-14
– 5 DDQ Averaging
• November 26-30
• December 24-28
• January 9-11
• January 29-31
• February 13-16
• OFOs– None
16
National Fuel
40
50
60
70
National Fuel Degree Days (HDD)
Buffalo NY - 2015-2016
Actual HDD as of 3-6-16
16.2% WTN
Actual HDD
November 2015 23.4% WTN
December 2015 35.0% WTN
January 2016 5.7% WTN
February 2016 8.2% WTN
March 2016 (EST) 23.0 WTN
0
10
20
30
Nov Dec Jan Feb MarActual HDDs Normal HDDs (NOAA 1981-2010) Forecast Accuweather HDDs Mar 7 - Mar 31
17
National Fuel
3,000
4,000
5,000
6,000
National Fuel Degree Days (HDD)
Cumulative Buffalo NY - 2015-2016
16.2% Warmer through 3/6/16
12.6% Colder through 3/6/15
12.1% Colder through 3/6/14
17.3% Warmer through 3/6/12**
0
1,000
2,000
Nov Dec Jan Feb MarActual HDDs Winter 2015-16 Normal HDDs (NOAA 1981-2010)
Actual HDDs Winter 2014-15 Actual HDDs Winter 2013-14 (Coldest in 71 Years)
Cumulative HDD through the end of
November 2015 23.4% WTN
December 2015 30.3% WTN
January 2016 20.3% WTN
February 2016 17.3% WTN
March 2016 (EST) 17.9% WTN
** The normals used for Winter 2011-12 are based off of NOAA 1971-2000 data.
18
National Fuel
30
40
50
60
National Fuel Degree Days (HDD)
Erie PA - 2015-2016
Actual HDD as of 3-6-16
16.4% WTN
Actual HDD
November 2015 22.8% WTN
December 2015 36.3% WTN
January 2016 4.4% WTN
February 2016 11.0% WTN
March 2016 (EST) 22.0 WTN
0
10
20
Nov Dec Jan Feb Mar
Actual HDDs Normal HDDs (NOAA 1981-2010) Forecasted Accuweather HDDs Mar 7 - Mar 31
19
National Fuel
3,000
4,000
5,000
6,000
National Fuel Degree Days (HDD)
Cumulative Erie PA - 2015-2016
16.4% Warmer through 3/6/16
14.7% Colder through 3/6/15
14.3% Colder through 3/6/14
17.9% Warmer through 3/6/12**
0
1,000
2,000
Nov Dec Jan Feb MarActual HDDs Winter 2015-16 Normal HDDs (NOAA 1981-2010)
Actual HDDs Winter 2014-15 Actual HDDs Winter 2013-14 (4th Coldest in 61 Years)
Actual HDDs Winter 2011-12 (Warmest in 61 Years)
Cumulative HDD through the end
of
November 2015 22.8% WTN
December 2015 31.1% WTN
January 2016 20.0% WTN
February 2016 17.6% WTN
March 2016 (EST) 18.4% WTN
** The normals used for Winter 2011-12 are based off of NOAA 1971-2000 data.
20
National Fuel
Winter 2015Winter 2015--2016 Operations Summary2016 Operations Summary
• November – February, No Issues.
• March – No issues at this point.
21
National Fuel
Gas Nomination Timeline ChangesGas Nomination Timeline Changes
RM14-2 - Coordination between Natural Gas and Electricity Markets
– Order 809 Issued 4/16/2015
• No change to Gas Day;
• Timely Nomination Deadline changes from 12:30 PM (ET) to • Timely Nomination Deadline changes from 12:30 PM (ET) to 2:00 PM (ET);
• Intraday 2 Nomination Deadline changes from 6:00 PM (ET) to 3:30 PM (ET);
• Additional Intraday 3 Scheduling Cycle Added with nomination deadline of 8:00 PM (ET).
– Changes take effect for Gas Day 4/1/2016 beginning with Timely Nominations on 3/31/2016.
22
National Fuel
Eastern Standard Time
Current TSS - SBS DCon process timeline
Nom
Deadline
TSS file
created
SBS file auto
created
TSS load of
SBS file
Schedule
Issued Cycle Rule
Start of Gas
Flow
Timely 12:30 PM 1:00 PM 5:05 PM 5:15 PM 5:30 PM 10:00 AM
Evening 7:00 PM 7:15 PM 10:35 PM 10:45 PM 11:00 PM 10:00 AM
Intraday 1 11:00 AM 11:30 AM 2:35 PM 2:45 PM 3:00 PM 0.333 1/3 6:00 PM
Intraday 2 6:00 PM 6:15 PM 9:35 PM 9:45 PM 10:00 PM 0.5 1/2 10:00 PM
23
National Fuel
TSS - SBS DCon process timeline on 3/31/16 ONLY
Nom
Deadline
TSS file
created
SBS file auto
created
TSS load of
SBS file
Schedule
Issued Cycle Rule
Start of Gas
Flow
Timely for 4/1/16 2:00 PM 2:30 PM 5:35 PM 5:45 PM 6:00 PM 10:00 AM
Evening for 4/1/16 7:00 PM 7:15 PM 9:35 PM 9:45 PM 10:00 PM 10:00 AM
Intraday 1 for
3/31/16 11:00 AM 11:30 AM 2:35 PM 2:45 PM 3:00 PM 0.333 1/3 6:00 PM
Intraday 2 for
3/31/16 6:00 PM 6:15 PM 9:35 PM 9:55 PM 10:00 PM 0.5 1/2 10:00 PM
24
National Fuel
TSS - SBS DCon process timeline beginning on 4/1/2016
Nom
Deadline
TSS file
created
SBS file
auto
created
TSS load of
SBS file
Schedule
Issued Cycle Rule
Start of Gas
Flow
Timely for 4/2/16 2:00 PM 2:30 PM 5:35 PM 5:45 PM 6:00 PM 10:00 AM
Evening for 4/2/16 7:00 PM 7:15 PM 9:35 PM 9:45 PM 10:00 PM 10:00 AM
Intraday 1 for
4/1/16 11:00 AM 11:30 AM 1:35 PM 1:45 PM 2:00 PM 0.208 5/24 3:00 PM
Intraday 2 for
4/1/16 3:30 PM 3:45 PM 6:05 PM 6:15 PM 6:30 PM 0.375 9/24 7:00 PM
Intraday 3 for
4/1/16 8:00 PM 8:15 PM 10:35 PM 10:45 PM 11:00 PM 0.542 13/24 11:00 PM
25
National Fuel
26
National Fuel
Questions?Questions?
27
National Fuel
National Fuel Gas Distribution Corporation
Spring 2016 Marketer/Supplier
Teleconference
Capacity UpdateCapacity Update
Presentation by: Bob Michalski
March 9, 2016
28
National Fuel
Discussion Topics
• NY STBA - Mandatory Upstream Transmission
Capacity (MUTC)
• PA SATS - Released Transmission Capacity
(RTC)(RTC)
• System Balancing Operations
• Released ESS Capacity inventory requirements
• DDQs & Scheduling for Holiday/Split Weekend
29
National Fuel
NY STBA Capacity
• Serves Requirements for up to 62 DD:
�Intermediate Capacity (NFGS ESS) provides 33%
�Upstream Capacity (MUTC) provides 67%�Upstream Capacity (MUTC) provides 67%
• MUTC released at weighted average cost of capacity
(WACOC) rate:
�ESS – 15% of MUTC, released at its maximum rate
�TGP – 85% of MUTC, released at rate that blended with the
ESS component achieves the WACOC rate:
• TGP Zone 4 Rose Lake – up to 34,000 Dth/day available
• TGP Zone 5 Nashville – additional capacity, as required
30
National Fuel
NY STBA Capacity
31
National Fuel
NY MUTC TGP Released Capacity
TGP FT-A Z4 and Z5 Delivery Contracts – Effective Apr 2016 - 85% of MUTC
Date Z1-4 Z0-4 Z4-4 Total Z4 Z1-5
Apr 2012 100%
Apr 2013 38% 33% 29% 100%
Apr 2014 20% 17% 63% 100%
Apr 2015 19% 17% 59% 95% 5%
Apr 2016 * 21% 18% 61% 100% 0%
* Projected Release Mix; reflects Feb 2016 release quantities
32
National Fuel
NY MUTC WACC & Release Rates
MUTC Capacity Mix: ESS – 15%, TGP FT-A Z4 and Z5 – 85%
Date WACOCESS Max
Rate/Dth
TGP Release
Rate/Dth
WACOC Change
Since Apr 2012
Apr 2012 $10.8359 $4.1649 $11.9219 -Apr 2012 $10.8359 $4.1649 $11.9219 -
Apr 2013 $10.5102 $4.4947 $11.4895 (3%)
Apr 2014 $9.8099 $4.4817 $10.6773 (10%)
Apr 2015 $9.4158 $4.4817 $10.2865 (13%)
Apr 2016 $10.0213 $4.3924 $11.0146* (8%)
* Projected Release Rate/Dth; reflects Feb 2016 release quantities
33
National Fuel
PA SATS Capacity
• Serves Requirements for up to 62 DD
• Capacity mix filed for August 2016:
�Upstream Pipeline Capacity 47%�Upstream Pipeline Capacity 47%
�NFGSC ESS Intermediate Capacity 53%
34
National Fuel
PA SATS Capacity
35
National Fuel
PA SATS TGP Release Rate
TGP FT-A Z4 Delivery Contract – Effective Aug 2016 - 47% of RTC
Date Z1 – Z4 Z0 – Z4 TGP Release Rate/Dth* Change
Aug 2012 100% $14.9823 -
Aug 2013 100% $13.8762 (7%)
Aug 2014 100% $11.7962 (21%)
Aug 2015 100% $10.1388 (32%)
Aug 2016 100% $9.6158** (36%)
*PA TGP Release Rate = PA WACOC Rate.
** Projected Rate/Dth
36
National Fuel
System Balancing Issues
• Scheduling to Primary Delivery Points
�Winter
• New York – TGP Zone 5 (Nashville)*• New York – TGP Zone 5 (Nashville)*
• Pennsylvania – TGP Zone 4 (Sharon)
�Summer
• New York - TGP Zone 5 – Storage Fill (Nashville)*
* (Nashville) only applicable if TGP Zone 5 capacity is released
37
National Fuel
ESS Inventory Levels– NY&PA
End of Month Minimum % FullApril 0%
May 12%
June 29%
July 46%July 46%
August 63%
September 80%
October 95%
November 90%
December 75%
January 50%
February 28%
March 0%38
National Fuel
Daily Delivery Quantity (“DDQ”) Averaging
• DDQs are typically averaged for weekends and
holidays, subject to operational requirements.
• If DDQs cannot be averaged, notice will be provided
on the business day prior to the day that on the business day prior to the day that
weekend/holiday DDQs are to be provided.
39
National Fuel
Split Weekend DDQ Averaging
Apr 2016 May 2016
27 28 29 30 1 2
Wed Thu Fri Sat Sun Mon
• Wed: Notice given if DDQs will not be averaged
• Thu: DDQs posted for Fri – Sat (Apr) & Sun – Mon (May)
Gas trades on ICE for Fri - Sat
• Fri: Gas trades on ICE for Sun - Mon
40
National Fuel
Questions?Questions?
41
National Fuel
National Fuel Gas Distribution Corporation
Spring 2016 Marketer/Supplier
Teleconference
Rates & Regulatory Update
Presentation by: Michael Novak
March 9, 2016
42
National Fuel Rates & Regulatory Update
Federal Update
Pipeline Rate Events
• National Fuel Gas Supply Corporation (NFGSC) was
required to file a general rate case by 1/1/2016.
• Instead, on 9/29/2015 NFGSC filed a Supplemental • Instead, on 9/29/2015 NFGSC filed a Supplemental
Stipulation and Agreement (of the RP12-88 S&A).
• On 11/13/2015, FERC issued Letter Order Approving
Filing of an Uncontested Supplemental Stipulation and
Agreement in Docket No. RP15-1310.
– Reduced Rates went into effect 11/1/2015.
43
National Fuel Rates & Regulatory Update
Federal Update
Pipeline Rate Events• On 12/18/2015, Columbia Gas Transmission, LLC
(Columbia) filed Stipulation and Agreement of Settlement (Docket No. RP16-314).– Described by Columbia as a comprehensive agreement in the
Modernization II Settlement to extend the essential provisions of Modernization II Settlement to extend the essential provisions of the Modernization I Settlement (RP12-1021) for a Second Term.
– Capital Cost-Recovery Mechanism (CCRM) Tracker/Surcharge addressing storage facilities and additional transmission facilities.
• As yet, FERC has not issued an Order on Columbia’s Petition for Approval.– Reduced Rates could go into effect 4/1/2016 although the long
term rate effect will be to increase rates.
44
National Fuel Rates & Regulatory Update
New York Update
New York GTOP
– GTOP Version 2.60 was filed on 1/29/2016• Change in the gas switching timeline from 15 calendar days to 10 business
days.
• SC-13M (MMT) Customers with multiple meters per account may request that meters measuring de minimis account consumption be excluded from the electronic telemetering equipment requirement.
• Adjustments to teleconference scheduling procedures. Other routine updates and clarifications.
• Adjustments to teleconference scheduling procedures. Other routine updates and clarifications.
– GTOP Version 2.61 was filed on 2/29/2016• UBP Compliance filing.
• Update to the capacity mix for Mandatory Upstream Transmission Capacity (MUTC).
• Gas Nomination Timeline Change.
No Distribution-initiated tariff changes affecting STBA service are anticipated, however….
45
National FuelRates & Regulatory Update
New York Update
Case 12-M-0476 - Proceeding on Motion of the Commission to
Assess Certain Aspects of the Residential and Small Non-
Residential Retail Energy Markets in New York State
(“NY Retail Energy Markets Case”)
– Order issued on 2/25/2014• UBP Changes regarding Door-to-Door Marketing;• UBP Changes regarding Door-to-Door Marketing;
• Changes regarding ESCO service to Low Income Customers;
• Technical Conference to address implementation of new requirements from Order;
• Collaborative to address changes in Electronic Data Interchange(“EDI”) Standards
related to new requirements from Order;
• Collaborative on ESCO Specific POR Discount Rates.
– On 4/25/2014, the PSC issued Order Granting Requests For Rehearing
And Issuing A Stay• Low Income/HEAP related provisions of the 2/25/2014 Order were stayed.
46
National FuelRates & Regulatory Update
New York Update
Case 12-M-0476 – NY Retail Energy Markets Case
• On 2/6/2015, the PSC issued Order Granting and Denying
Petitions For Rehearing In Part
– Stay lifted on Low Income/HEAP related provisions of the 2/25/2014
Order subject to various modifications.Order subject to various modifications.
– Directed development of an EDI transaction to be used by ESCOs to
send utilities bill credits for Assistance Program Participants (APP).
47
National FuelRates & Regulatory Update
New York Update
Case 12-M-0476 – NY Retail Energy Markets Case
• The directive to ESCOs in the 2/25/2014 Order was that in order to sell
energy commodity to Assistance Program Participants, the ESCO must
guarantee such customers savings in comparison with what the customer
would have paid the utility, or must include energy-related value-added
services that may reduce a customer’s overall energy bill. services that may reduce a customer’s overall energy bill.
• A Staff-led collaborative was established by the 2/6/2015 Order to:• Define the energy-related value-added products and services that must be
provided to Assistance Program Participants (APP);
• Consider available technologies and mechanisms for implementing point-of-
sale confirmation of APP customers;
• Consider how best to protect existing APP customers;
• The Staff Report was filed on 11/5/2015– Comments and Reply-comments were filed in response.
48
National Fuel Rates & Regulatory Update
New York Update
Case 15-M-0127 - In the Matter of Eligibility Criteria for Energy Services Companies.
– Staff proposed that the Commission move toward reliance on industry-developed eligibility requirements. The retail energy supply industry should develop clear and common standards for core issues of importance to consumers;
Changes to Application Requirements including – Changes to Application Requirements including demonstration of required expertise.
– Standardized Definitions of “Fixed Price” and “Green Energy”;
– Standard Contracts or Contract Terms;
– Consequences Applicable to ESCOs with a Material Pattern of High Complaints;
– Other Administrative changes.
49
National Fuel Rates & Regulatory Update
New York Update
Case 15-M-0127 - In the Matter of Eligibility Criteria for Energy Services Companies.
– On 2/23/2016, the PSC issued Order Resetting Retail Energy Markets and Establishing Further Process (“Resetting Order”);
• For gas customers, the order extended the protections envisioned in 12-M-0476 for APP Customers to all mass-market customers.
• The Resetting Order set forth issues to be evaluated within 60 days to refine the retail energy markets for residential and small non-residential customers in New York and consider new requirements applicable to entities providing energy to retail energy markets for residential and small non-residential customers in New York and consider new requirements applicable to entities providing energy to mass market customers.
• 10-day (March 4, 2016) Implementation ordered.
– On 2/23/2016, the PSC issued Notice Seeking Comments on Resetting Retail Energy Markets for Mass Market Customers;
– On 3/2/2016, the PSC issued Notice Denying Request for Extension;
– On 3/4/2016, a NY Court granted a temporary restraining order preventing enforcement of certain provisions of the Reset Order; reportedly through at least 4/14/2016.
50
National Fuel
Case 15-M-0127 Notices/Information web page
• Accessible from Services For Marketers, Producers & Suppliers web page
http://nationalfuelgas.com/marketers/default.aspx
ESCO/Supplier – Change Impacts
National Fuel’s New Utility Billing System
51
National Fuel
Case 15-M-0127 Notices/Information web pagehttp://nationalfuelgas.com/marketers/Case15-M-0127/default.aspx
ESCO/Supplier – Change Impacts
National Fuel’s New Utility Billing System
• This web page will be the primary means to communicate information to ESCOs concerning the Resetting Order as it relates to National Fuel’s service territory. Please check it regularly.
52
National Fuel Rates & Regulatory Update
New York Update
Case 12-M-0476 – NY Retail Energy Markets CaseChanges to EDI Standards
• On 3/2/2015, the PSC issued an Order approving EDI modifications developed from the 2/25/2014 Order.
– Other New York utilities implemented EDI changes by 11/2/2015.
• NFGDC implementation factors.• NFGDC implementation factors.– Changes limited to pre-enrollment provision of Customer SIC Codes,
Shopping Status, Tax Exempt Status, whether the customer has non-portable utility discounts, new codes indicating whether the customer has an enrollment block, historical usage block or both.
– NFGDC provides the 11/2/2015 items through online Customer Information Inquiry (CII) secured website access (non-EDI).
– EDI Implementation will take place when the new billing system is implemented.
– CII access will continue.
53
National Fuel Rates & Regulatory Update
Pennsylvania Update
Pennsylvania GTOP
– GTOP Version 2.60 was filed on 3/1/2016
• Implementation of the revised gas industry standard nomination timeline
• Clarification of procedures and responsibilities • Clarification of procedures and responsibilities during telemetering failures.
No Distribution-initiated tariff changes affecting SATS or MMNGS services are anticipated, however…
54
National Fuel Rates & Regulatory Update
Pennsylvania Update
Investigation of Pennsylvania’s
Retail Natural Gas Supply Market
I-2013-2381742 (“RMI”)
• By Order entered 9/12/2013, the Commission initiated an
investigation of the market because it believes there are more
opportunities for customers to benefit from robust competition in opportunities for customers to benefit from robust competition in
the retail natural gas market.
• In an Order issued 12/18/2014, the Office of Competitive Market
Oversight (OCMO) was directed to examine various issues with the
goal of improving the retail gas market and stimulating customer
participation.
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National Fuel Rates & Regulatory Update
Pennsylvania Update
RMI
Capacity Assignment/
Use of Storage
System Balancing,
Tolerances and Penalties
Access to Local
Production
Seamless Moves &
Instant Connects
Accelerated Switching Creditworthiness
Requirements
Standard Offer Program Account Number Lookup Low Income ShoppingStandard Offer Program Account Number Lookup
Mechanisms
Low Income Shopping
Customer Education Migration Riders Purchase of Receivables
Programs
Disclosure Statements Electronic Data Protocols Joint NGDC – NGS Bill
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National Fuel Rates & Regulatory Update
Pennsylvania Update
Investigation of Pennsylvania’s Retail Natural Gas Supply Market
I-2013-2381742 (“RMI”)
• Working Groups met during summer 2015 (“the Beast
Committee”) covering several topics including:
– Capacity and Storage Release;– Capacity and Storage Release;
– Penalties and Balancing;
– Access Points;
– Standard Offer Programs;
– Creditworthiness.
• A Tentative Order from the PUC is the likely next step.
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National Fuel Rates & Regulatory Update
Pennsylvania Update
Investigation of Pennsylvania’s Retail Natural Gas Supply MarketI-2013-2381742 (“RMI”)
• M-2015-2468991 – Final Order - Natural Gas Distribution Company Customer Account Number Access Mechanism for Natural Gas Suppliers.– Distribution’s compliance plan has been filed with the PUC.– Distribution’s compliance plan has been filed with the PUC.
– Implementation will likely be delayed until January 2017.
• M- 2015-2474802 – Final Order - Joint Natural Gas Distribution Company – Natural Gas Supplier Bill.– With the exception of the Shopping Box, Distribution’s bill will be compliant
when the new billing system is implemented (display of logo and NGS message space).
– The Shopping Box information is currently displayed on the front page of the bill, but not displayed in the prescribed format.
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National Fuel Rates & Regulatory Update
Pennsylvania Update
2016 Annual 1307(f) filing
• Status Update– Exhibits were filed January 2016.– Tariff and Testimony were filed February 2016.– No major non-gas cost tariff initiatives are being bundled with 1307(f) filing.
• Filing Highlights – proposed rate* changes:• Filing Highlights – proposed rate* changes:– MMT from $0.2900 to $0.2700– SATC from $0. 2844 to $0.2506– PSB from $1.1791 to $1.1086– SB from $0. 5583 to $0.5272– RTC from $9.9539 to $9.6158 (weighted avg. demand cost of upstream capacity)
– DTR [Nov. $0.33 to $0.23, Dec $0.54 to $0.44, Jan $0.41 to $0.33 & Feb $0.00 to $0.10]
• Implementation to be effective August 1, 2016.
* Relative to current tariff rates
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Change Impacts
© 2012 HCL AXON – Proprietary & Confidential
National Fuel’s
New
Utility Billing System
National Fuel
Overview
1. Cutover date scheduled for May 9th, 2016.
2. Recap of major business changes.
ESCO/Supplier – Change Impacts
National Fuel’s New Utility Billing System
2. Recap of major business changes.
3. EDI Testing and Web Files.
4. Cutover gaps and workarounds.
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National Fuel
National Fuel’s New Utility Billing System
• Even though the changes will be largely invisible to customers, the new SAP customer information system touches nearly every aspect of National Fuel’s customer data management.
• The slides within this presentation address the
ESCO/Supplier – Change Impacts
National Fuel’s New Utility Billing System
• The slides within this presentation address the Company’s interaction with ESCOs and NGSs, focusing upon changes to current business processes.– Some changes will impact the manner in which ESCOs and
NGSs provide service to their customers.
– In most cases, the system design maintains continuity before and after SAP implementation.
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National Fuel
New Utility Billing System Notices/Information web pagehttp://nationalfuelgas.com/marketers/SAPannounce.asp
ESCO/Supplier – Change Impacts
National Fuel’s New Utility Billing System
• This web page will be the primary means to communicate information to ESCOs/NGSs concerning the new billing system. Please check it regularly.
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National Fuel
Budget Billing Plan Consolidation
• For Utility Consolidated Billing (“UCB”) enrolled accounts, NFG will no longer require customers to enroll in separate supply and delivery budget billing plans.– Budget Plans will be consolidated in to one plan.
– Budget Plans will no longer need to be “settled” whenever a customer
ESCO/Supplier – Change Impacts
National Fuel’s New Utility Billing System
– Budget Plans will no longer need to be “settled” whenever a customer switches ESCOs.
• For POR enrolled customers, NFG will purchase the receivable based on the “billed amount”. – NFG will no longer purchase the ESCO/NGS supply budget plan
amount.
– Conforming modifications to the POR section of the Billing Service Agreement (“BSA”) were included in the September 2015 GTOP filings.
• ESCOs/NGSs may be required to execute new BSAs.
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National Fuel
Budget Billing Plan Consolidation
• ESCOs/NGSs will no longer be able to send Budget Plan Amounts and Review indicators on EDI Enrollment and Change transactions.
– ESCOs/NGSs will still be able to add customers to Budget Billing.
– ESCOs/NGSs will no longer be able to remove customers from Budget
ESCO/Supplier – Change Impacts
National Fuel’s New Utility Billing System
– ESCOs/NGSs will no longer be able to remove customers from Budget Billing.
• Customers must contact the Company to leave Budget Billing.
• All ESCO/NGS Budget Plans will be settled to prepare for consolidation.
– After the credit/debit balance is sent to the ESCO/NGS, any balance still owed by the customer will be transferred into the customer’s consolidated plan.
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National Fuel
Utility Combined Billing – Sales Tax Rate Changes
• ESCOs/NGSs will be required to provide sales tax rates via EDI to be applied to the commodity portion of the customer’s bill when enrolling customers under the UCB Model.– Sales tax on ESCO/NGS commodity will be calculated independently
from sales tax on utility delivery charges.
ESCO/Supplier – Change Impacts
National Fuel’s New Utility Billing System
from sales tax on utility delivery charges.
– At cutover, the sales tax rates for each ESCO/NGS customer in the new system will be populated with rates from the current system.
• The UCB EDI Enrollment requirement is prospective and also applies to EDI changes for existing customers switched from MCB or Dual to UCB.
– Rather than requiring exemption percentages via EDI, the new system will require the net rate (residential or commercial) to be applied to the ESCO/NGS charges.
• After SAP cutover, GTOP sales tax change forms will no longer be accepted.
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National Fuel
Utility Combined Billing – Sales Tax Rate Changes
IMPORTANT CHANGE IMPACTING CUSTOMER ENROLLMENT
– After cutover to the new system, EDI Enrollment Transactions for UCB customers without sales tax rate information will be rejected.
ESCO/Supplier – Change Impacts
National Fuel’s New Utility Billing System
• If a customer is totally exempt from sales tax, the ESCO/NGS should provide a zero rate in the EDI Enrollment Transaction (blanks will be rejected).
– For NY, DTF web site provides sales tax rates by street address (excluding school tax): http://www8.tax.ny.gov/JRLA/jrlaStart
• ESCO responsible for determining applicable school tax rate
– For PA, the current sales tax rate is 6% unless there’s a customer specific exemption or a customer is categorically exempt.
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National Fuel
Marketer Consolidated Billing (MCB)/Single Retailer
• In New York, MCB is currently billed on the Calendar Month Estimates (CMEs) of customers enrolled in this billing model.
• In SAP, ESCOs will be billed on the cycle readings for
ESCO/Supplier – Change Impacts
National Fuel’s New Utility Billing System
• In SAP, ESCOs will be billed on the cycle readings for customers enrolled in this billing model.– Customer billing data will be provided to ESCOs based on the
customer’s cycle readings.
• CME billing detail will be discontinued.
– ESCOs will receive the customer’s cycle billing charges on their end of month summary invoices.
• ESCO level billing data will continue to be on the summary invoice which will include cycles 1-21 of the previous month.
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National Fuel
NY ESCO Contest Period Reinstatement Requests
• Will be automated using EDI Drop Transactions– Similar to ConEd’s implementation, the Incumbent ESCO will use the
“CHA” code to challenge a customer’s pending enrollment with another ESCO or return to utility sales service (subject to NY UBP rules).
– GTOP form will be retired.
ESCO/Supplier – Change Impacts
National Fuel’s New Utility Billing System
– GTOP form will be retired.
• Related EDI Drop Changes:– ESCOs will have to stop using the “CHA” code for routine drops; use
“B38” code instead.
• ESCOs can use this code now – there’s no need to wait until the new system is implemented.
– Post implementation, a “CHA” code in absence of a pending enrollment will not drop the customer.
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National Fuel
PA Last-In Enrollment Requests
• SAP will have separate enrollment processing logic for
each state so it will no longer be necessary to process
last-in enrollments manually.
– After SAP cutover, GTOP Last-In Enrollment forms will no longer
ESCO/Supplier – Change Impacts
National Fuel’s New Utility Billing System
– After SAP cutover, GTOP Last-In Enrollment forms will no longer
be accepted.
– EDI transactions (Accept/Reject responses) will be created by
SAP instead of being initiated manually.
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National Fuel
PA Last-In Enrollment Requests
• If two or more enrollments are received on the same
day…
– SAP “stacking rules” will accept whichever enrollment is
received latest.
ESCO/Supplier – Change Impacts
National Fuel’s New Utility Billing System
received latest.
– NGSs should not use NY “CHA” code for Drops; “B38” should be
used instead.
• The PA method for the current NGS to cancel a pending enrollment to
another NGS is to submit another enrollment.
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National Fuel
Seamless Moves
• Customer requests to keep the same ESCO/NGS when they move
within National Fuel’s service territory (within the same state) are
currently handled through a manual process.
• After SAP cutover:
ESCO/Supplier – Change Impacts
National Fuel’s New Utility Billing System
• After SAP cutover:
– At order entry, SAP will generate a new account number.
� In the current system, the new account number is not created until the new
account begins service.
– Using the new account number, customers may keep their current
ESCO/NGS when they move through a two step process.
1. The Customer provides the new account number to the ESCO/NGS.
2. The ESCO/NGS submits an enrollment request.
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National Fuel
Instant Connects (New Delivery Service)• Customer requests to choose an ESCO/NGS when they initiate new delivery
service (instead of starting with utility sales service) are currently handled through a manual process during service application.
• After SAP cutover:
– At order entry, SAP will generate a new account number.� In the current system, the new account number is not created until the new
ESCO/Supplier – Change Impacts
National Fuel’s New Utility Billing System
� In the current system, the new account number is not created until the new account begins service.
– Using the new account number, customers may keep their current ESCO/NGS when they initiate service through a two step process.
1. The Customer provides the new account number to the ESCO/NGS.
2. The ESCO/NGS submits an enrollment request.
NOTE: Instant Connect Requests will be accepted until delivery service starts. If the ESCO/NGS submits the request after this date, it will be processed as a normal enrollment transaction and the customer will be switched to ESCO/NGS service at the next scheduled switching date.
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National Fuel
Impact to Gas Scheduling
Overall TSS scheduling operations will not change with
implementation of the new billing system.
• While problems are not anticipated with
implementation of the new interfaces between the
ESCO/Supplier – Change Impacts
National Fuel’s New Utility Billing System
implementation of the new interfaces between the
Billing System and TSS there is a possibility that some
items, e.g. DDQs and Daily or Monthly processing
could be delayed.
– Patience during the initial periods of operation will
be greatly appreciated!
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National Fuel
DDQ Methodology Changes
• Adding Algorithm 0 (New Accounts) - DDQ's for new accounts will be based on system default values specific to rate classes until enough history is accumulated to trigger changing to appropriate algorithm.
• Algorithm 1 (BL, DDF calculation) - New SAP system allows
ESCO/Supplier – Change Impacts
National Fuel’s New Utility Billing System
• Algorithm 1 (BL, DDF calculation) - New SAP system allows for expanded base load and degree day factors. May result in some larger heat sensitive accounts to be included in this algorithm.
• Algorithm 4 (AMD) - DDQ will be based on actual use for same gas day last week. Current method uses most recent gas day usage available for next day(s) DDQ.
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National Fuel
DDQ Methodology Changes
There will be no changes to:– Algorithm 2 (Avg. daily volume of most current billing
month available);
– Algorithm 3 (Avg. daily volume from same month last year);
ESCO/Supplier – Change Impacts
National Fuel’s New Utility Billing System
year);
– Algorithm 5 (Accounts that have multiple meters with different algorithm basis);
– Mid course correction methodology;
– Degree day bucket methodologies;
– Applicable peak degree days for STBA, SATS, MMNGS services.
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National Fuel
EDI Testing
• NFG has minimized changes to its EDI implementation because except as noted, the EDI transactions exchanged after cutover will be identical to those currently exchanged.
– Where changes are being made, the resulting EDI transactions will implement business process changes reflected in other utility EDI
ESCO/Supplier – Change Impacts
National Fuel’s New Utility Billing System
implement business process changes reflected in other utility EDI implementations.
• NFG is utilizing the expedited testing procedures contained in the NY EDI Standards.
– Internal EDI testing between NFG and its EDI Service Providers (“EDISP”) has been underway for a few weeks.
– External EDI testing between NFG’s EDISP and ESCO/NGS EDISPs (or with ESCOs/NGSs that provide their own EDI functionality) started last fall and will resume shortly.
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National Fuel
EDI Testing
– Under expedited testing, utilities need not test every EDI transaction with each individual ESCO/NGS.
• Since most EDI transactions are not being changed, retesting can be limited to the most critical changes, i.e. those related to sales tax.
• This approach will eliminate duplicative/redundant testing because a successful test with one of an EDISP’s ESCOs/NGSs means that NFG can
ESCO/Supplier – Change Impacts
National Fuel’s New Utility Billing System
successful test with one of an EDISP’s ESCOs/NGSs means that NFG can exchange EDI transactions with the EDISP for any of its clients.
– ESCOs/NGSs will need to adjust their business processes and systems to accommodate the changes but such changes should not affect the EDI exchange between NFG’s EDISP and ESCO/NGS EDISPs .
• EDISPs will be expected to test changes, as necessary, with their ESCO/NGS clients.
• If an ESCO/NGS wishes to test with NFG, it should work through its EDISP.
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National Fuel
Website and Web file/Report Changes
• NFG is working to keep most file and report formats unchanged, but there are some changes that will be made.
– Account number will no longer have a separate 2 character
ESCO/Supplier – Change Impacts
National Fuel’s New Utility Billing System
– Account number will no longer have a separate 2 character check digit. Account number will be 9 numeric characters.
• Some field lengths may increase/decrease on web files and reports to accommodate new naming conventions for billing components.
– Utility Tax Exempt Status will be provided via web files at SAP cutover.
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National Fuel
Cutover Gaps/Temporary Workarounds
Pre-Cutover Cancel/Rebill Volumes & Amounts for MCB/Single Retailer
• The transition from CME billing to Cycle billing of customer level charges results in a data complication impacting the cancel/rebill process.
• Where the cancel/rebill period crosses the cutover date for National Fuel’s
ESCO/Supplier – Change Impacts
National Fuel’s New Utility Billing System
• Where the cancel/rebill period crosses the cutover date for National Fuel’s new billing system. – Post-Cutover cancel/rebill volumes and amounts for cycles and CMEs will be sent
via EDI.
– Pre-Cutover cancel/rebill volumes and amounts for CMEs will be sent via EDI.
– Pre-Cutover informational volumes and amounts for cycle periods will not be sent via EDI however volume adjustments will be provided via Web File E3.
– The details of this workaround have been posted in an SAP Bulletin.
– Obtaining customer meter reads prior to the SAP go-live date minimizes cancel/rebill and other transition issues, particularly for MCB ESCOs that bill customers on a cycle basis.
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National Fuel
Cutover Gaps/Temporary Workarounds
Allocation of Late Payment Charges (LPC) forNon-Purchase of Receivables (POR) Customers
• The system that calculates late payment charges on all customer bills is not allocating the portion of the LPC that belongs to the ESCO/NGS where the customer is non-POR.
ESCO/Supplier – Change Impacts
National Fuel’s New Utility Billing System
belongs to the ESCO/NGS where the customer is non-POR.
• Until this is fixed, a potential manual calculation workaround has been identified which would be included in the payment to the ESCO/NGS.
– The workaround LPC amount will not initially be included in the EDI transaction provided to the ESCO/NGS.
– A non-EDI means of providing the LPC amount to the ESCO/NGS will be developed and posted in a bulletin.
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National Fuel
SUMMARY
• There may be additional changes affecting
ESCO/NGS transactions.
ESCO/Supplier – Change Impacts
National Fuel’s New Utility Billing System
• NFG will continue to communicate these
changes as we become aware of them.– Check the New Utility Billing System Notices/Information
web page to stay current with the latest communications.
– Thank you for your patience and cooperation.
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National Fuel
Questions?Questions?
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