20
Winter 2013/14 Benchmark and Revised Projections for New England Natural Gas Supplies and Demand Presentation to Planning Advisory Committee April 29, 2014 Kevin Petak Vice President, Natural Gas Markets ICF International 703-218-2753 [email protected] Docket No. IR 15-124 Comments of Eversource Energy Attachment 8 Page 1 of 20 000158

Vice President, Natural Gas Markets Planning Advisory ... · Presentation to Planning Advisory Committee . April 29, 2014 . Kevin Petak . Vice President, Natural Gas Markets . ICF

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Page 1: Vice President, Natural Gas Markets Planning Advisory ... · Presentation to Planning Advisory Committee . April 29, 2014 . Kevin Petak . Vice President, Natural Gas Markets . ICF

Win

ter

20

13

/14

Be

nch

mar

k an

d R

evis

ed

Pro

ject

ion

s fo

r N

ew E

ngl

and

Nat

ura

l Gas

Su

pp

lies

and

De

man

d

Pre

sen

tati

on

to

Pla

nn

ing

Ad

viso

ry C

om

mit

tee

Ap

ril 2

9, 2

01

4

Kev

in P

etak

V

ice

Pre

sid

en

t, N

atu

ral G

as M

arke

ts

ICF

Inte

rnat

ion

al

70

3-2

18

-27

53

K

evin

.Pet

ak@

icfi

.co

m

Docket No. IR 15-124 Comments of Eversource Energy

Attachment 8 Page 1 of 20

000158

Page 2: Vice President, Natural Gas Markets Planning Advisory ... · Presentation to Planning Advisory Committee . April 29, 2014 . Kevin Petak . Vice President, Natural Gas Markets . ICF

2

ICF

Inte

rnat

ion

al D

iscl

aim

er

War

ran

tie

s an

d R

ep

rese

nta

tio

ns.

IC

F en

de

avo

rs t

o p

rovi

de

info

rmat

ion

an

d

pro

ject

ion

s co

nsi

sten

t w

ith

sta

nd

ard

pra

ctic

es in

a p

rofe

ssio

nal

man

ner

. IC

F M

AK

ES

NO

WA

RR

AN

TIES

, HO

WEV

ER, E

XP

RES

S O

R IM

PLI

ED (

INC

LUD

ING

WIT

HO

UT

LIM

ITAT

ION

AN

Y W

AR

RA

NTI

ES O

R M

ERC

HA

NTA

BIL

ITY

OR

FIT

NES

S FO

R A

PA

RTI

CU

LAR

P

UR

PO

SE),

AS

TO T

HIS

PR

ESEN

TATI

ON

. Sp

eci

fica

lly, b

ut

wit

ho

ut

limit

atio

n, I

CF

mak

es

no

war

ran

ty o

r gu

aran

tee

rega

rdin

g th

e ac

cura

cy o

f an

y fo

reca

sts,

est

imat

es, o

r an

alys

es,

or

that

su

ch w

ork

pro

du

cts

will

be

acc

epte

d b

y an

y le

gal o

r re

gula

tory

b

od

y.

Wai

vers

. Th

ose

vie

win

g th

is p

rese

nta

tio

n h

ereb

y w

aive

an

y cl

aim

at

any

tim

e,

wh

eth

er n

ow

or

in t

he

futu

re, a

gain

st IC

F, it

s o

ffic

ers,

dir

ecto

rs, e

mp

loye

es

or

agen

ts

aris

ing

ou

t o

f o

r in

co

nn

ect

ion

wit

h t

his

pre

sen

tati

on

. In

no

eve

nt

wh

atso

ever

sh

all

ICF,

its

off

icer

s, d

irec

tors

, em

plo

yee

s, o

r ag

ents

be

liab

le t

o t

ho

se v

iew

ing

this

p

rese

nta

tio

n.

Ap

ril 2

9, 2

01

4 P

AC

Mee

tin

g

Docket No. IR 15-124 Comments of Eversource Energy

Attachment 8 Page 2 of 20

000159

Page 3: Vice President, Natural Gas Markets Planning Advisory ... · Presentation to Planning Advisory Committee . April 29, 2014 . Kevin Petak . Vice President, Natural Gas Markets . ICF

Stu

dy

Co

nta

cts

Ma

rk B

ab

ula

, IS

O

Pro

ject M

anager

413-5

35-4

324

m

ba

bula

@is

o-n

e.c

om

Ke

vin

Pe

tak

, IC

F

Pro

ject D

irecto

r

703-2

18-2

753

K

evin

.Pe

tak@

icfi.c

om

Wa

yn

e C

os

te, IS

O

Technic

al M

anager

413-5

40-4

266

w

co

ste

@is

o-n

e.c

om

Fra

nk

Bro

ck

, IC

F

Lead, G

as

Syste

ms A

na

lysis

703-2

18

-27

41

F

ran

k.B

rock@

icfi.c

om

3

Ap

ril 2

9, 2

01

4 P

AC

Mee

tin

g

Docket No. IR 15-124 Comments of Eversource Energy

Attachment 8 Page 3 of 20

000160

Page 4: Vice President, Natural Gas Markets Planning Advisory ... · Presentation to Planning Advisory Committee . April 29, 2014 . Kevin Petak . Vice President, Natural Gas Markets . ICF

Co

nte

nts

In

tro

du

ctio

n

D

ata

fro

m W

inte

r 2

01

3/1

4

N

atu

ral G

as S

up

ply

an

d D

eman

d:

P

roje

ctio

ns

vers

us

Act

ual

R

evis

ed p

roje

ctio

n f

or

gas

sup

plie

s av

aila

ble

to

el

ectr

ic g

ener

ato

rs t

hro

ugh

20

20

4

Ap

ril 2

9, 2

01

4 P

AC

Mee

tin

g

Docket No. IR 15-124 Comments of Eversource Energy

Attachment 8 Page 4 of 20

000161

Page 5: Vice President, Natural Gas Markets Planning Advisory ... · Presentation to Planning Advisory Committee . April 29, 2014 . Kevin Petak . Vice President, Natural Gas Markets . ICF

5

Intr

od

uct

ion

In

20

13

, IC

F co

mp

lete

d t

he

Ph

ase

II a

sses

smen

t o

f N

ew E

ngl

and

nat

ura

l gas

su

pp

lies,

fir

m L

DC

d

eman

d, a

nd

gas

su

pp

lies

rem

ain

ing

for

elec

tric

gen

erat

ors

th

rou

gh 2

02

0.

–P

has

e II

incl

ud

ed p

roje

ctio

ns

for

the

90

-day

win

ter

per

iod

(D

ecem

ber

1 t

hro

ugh

Feb

ruar

y 2

8)

and

th

e p

eak

sum

mer

day

un

der

a r

ange

of

wea

ther

co

nd

itio

ns,

bas

ed o

n t

he

pri

or

20

-yea

rs o

f te

mp

erat

ure

dat

a.

Th

e p

rim

ary

ob

ject

ive

of

this

new

“B

ench

mar

k” a

nal

ysis

is t

o r

e-e

valu

ate

the

Ph

ase

II

pro

ject

ion

s fo

r N

ew E

ngl

and

nat

ura

l gas

su

pp

lies,

fir

m L

DC

dem

and

, an

d g

as s

up

plie

s re

mai

nin

g fo

r el

ectr

ic g

ener

ato

rs b

ased

on

dat

a fo

r ga

s sy

stem

per

form

ance

du

rin

g th

e w

inte

r o

f 2

01

3/1

4

(par

ticu

larl

y d

uri

ng

the

po

lar

vort

ex e

ven

ts),

an

d m

ake

adju

stm

ent

to t

he

pro

ject

ion

s w

her

e n

eces

sary

.

IS

O-N

E al

so p

rovi

ded

new

pro

ject

ion

s fo

r p

eak

day

win

ter

and

su

mm

er e

lect

ric

gen

erat

ion

gas

d

eman

d t

hro

ugh

20

20

, b

ased

on

th

e re

sult

s o

f th

e la

test

Fo

rwar

d C

apac

ity

Au

ctio

n (

FCA

8).

–IC

F u

sed

th

ese

new

gas

dem

and

pro

ject

ion

s an

d t

he

revi

sed

pro

ject

ion

s fo

r ga

s su

pp

lies

rem

ain

ing

for

elec

tric

gen

erat

ors

to

cal

cula

te p

ote

nti

al g

as s

up

ply

su

rplu

s/d

efic

its

on

pea

k w

inte

r an

d s

um

mer

day

s th

rou

gh 2

02

0.

Ap

ril 2

9, 2

01

4 P

AC

Mee

tin

g

Un

its

use

d t

hro

ugh

ou

t th

is p

rese

nta

tio

n:

1

De

kath

erm

(D

th)

= 1

MM

Btu

= 1

Mcf

= 1

,00

0 c

ub

ic f

eet

1

,00

0 D

th =

1 M

Mcf

= 1

,00

0,0

00

cu

bic

fe

et

Docket No. IR 15-124 Comments of Eversource Energy

Attachment 8 Page 5 of 20

000162

Page 6: Vice President, Natural Gas Markets Planning Advisory ... · Presentation to Planning Advisory Committee . April 29, 2014 . Kevin Petak . Vice President, Natural Gas Markets . ICF

The

Win

ter

of

20

13

/14

was

th

e 3

rd C

old

est

in

the

Pas

t 2

0 Y

ear

s

Th

e w

inte

r o

f 2

01

3/1

4 w

as t

he

cold

est

in N

ew E

ngl

and

sin

ce t

he

19

90

s.

–B

etw

een

Dec

1 a

nd

Feb

28

a

tota

l of

~3,5

00

Hea

tin

g D

egre

e D

ays

(HD

Ds)

, ab

ou

t 1

0%

co

lder

th

an t

he

20

yea

r av

erag

e.

O

ut

of

the

pas

t 2

1 y

ears

, th

e w

inte

r o

f 2

01

3/1

4 r

anks

th

ird

in

bo

th t

ota

l win

ter

HD

Ds

and

th

e co

ldes

t av

erag

e d

aily

te

mp

erat

ure

.

–Th

e co

ldes

t d

ay w

as J

anu

ary

3,

20

14

, wh

en t

he

wei

ghte

d

aver

age

dai

ly t

emp

erat

ure

was

2

.7 d

egre

es F

.*

1993/94 1995/96

2013/14

2003/04

2007/08

2012/13 2011/12

2001/02

0

50

0

1,0

00

1,5

00

2,0

00

2,5

00

3,0

00

3,5

00

4,0

00

4,5

00

To

tal H

DD

s, D

ec

1 t

hro

ugh

Fe

b 2

8

6

Ap

ril 2

9, 2

01

4 P

AC

Mee

tin

g

* D

aily

te

mp

era

ture

s a

nd

to

tal w

inte

r H

DD

s a

re b

ase

d o

n th

e w

eig

hte

d a

ve

rage

ho

urly te

mp

era

ture

s fo

r e

igh

t N

ew

En

gla

nd

we

ath

er

sta

tio

ns fo

r th

e g

as d

ay (

a 2

4-h

ou

r p

erio

d s

tart

ing 1

0 A

M E

aste

rn e

ach

da

y).

Docket No. IR 15-124 Comments of Eversource Energy

Attachment 8 Page 6 of 20

000163

Page 7: Vice President, Natural Gas Markets Planning Advisory ... · Presentation to Planning Advisory Committee . April 29, 2014 . Kevin Petak . Vice President, Natural Gas Markets . ICF

LDC

Fir

m D

em

and

: R

ep

ort

ed

Se

nd

ou

t o

n P

eak

Day

s

Th

e N

ort

hea

st G

as A

sso

ciat

ion

(N

GA

) p

rovi

ded

IS

O-N

E w

ith

rec

ent

sen

do

ut

dat

a an

d r

evis

ed

des

ign

day

est

imat

es f

or

17

of

the

21

New

En

glan

d L

DC

s.

–Th

e 1

7 L

DC

s re

pre

sen

t 9

4%

of

the

regi

on

’s

firm

dem

and

; th

e es

tim

ates

fo

r to

tal N

ew

Engl

and

LD

C s

end

ou

t w

ere

adju

sted

up

war

d

to a

cco

un

t fo

r th

e LD

Cs

that

did

no

t re

po

rt.

–Th

e LD

Cs

did

no

t re

po

rt t

he

tem

per

atu

res

assu

med

for

the

new

des

ign

day

est

imat

es;

ICF

has

ass

um

ed a

des

ign

day

tem

per

atu

re

of

0 d

egre

es

F.

Se

nd

ou

t d

ata

was

pro

vid

ed fo

r 4

day

s:

Jan

uar

y 3

, 7, 2

2, a

nd

23

, of

20

14

.

–Th

ese

wer

e 4

of

the

6 c

old

est

day

s th

is

win

ter,

wit

h a

vera

ge d

aily

tem

per

atu

res

ran

gin

g fr

om

2.7

to

10

.1 d

egre

es

F.

Th

e h

igh

est

ob

serv

ed s

end

ou

t th

is w

inte

r w

as

on

Jan

uar

y 3

, wh

ich

was

als

o t

he

cold

est

day

.

–Ev

en t

ho

ugh

it w

as t

he

hig

hes

t d

eman

d d

ay,

the

com

bin

atio

n o

f a

ho

liday

wee

k an

d a

re

gio

nal

sn

ow

sto

rm r

esu

lted

in J

anu

ary

3,

20

14

dem

and

bei

ng

low

er t

han

we

wo

uld

h

ave

exp

ecte

d, g

iven

th

e te

mp

erat

ure

.

7

Ap

ril 2

9, 2

01

4 P

AC

Mee

tin

g

32

50

35

00

37

50

40

00

42

50

45

00

-1

0

1

2

3

4

5

6

7

8

9

10

1

1

LDC Sendout (1,000 Dth)

Ave

rage

Dai

ly T

emp

erat

ure

(D

egre

es F

ahre

nh

eit)

Win

ter

Dai

ly L

DC

Fir

m D

em

and

:

4-D

ay S

amp

le D

ata

and

New

De

sign

Day

Jan

3

Jan

7

Jan

22

Jan

23

Re

vise

d D

esi

gn D

ay E

stim

ate

Ori

gin

al D

esi

gn D

ay E

stim

ate

Ho

liday

we

ek

and

sn

ow

sto

rm

resu

lte

d in

sch

oo

l an

d b

usi

ne

ss

clo

sure

s o

n J

anu

ary

3, 2

01

4

wh

ich

re

du

ced

LD

C g

as d

em

and

.

Docket No. IR 15-124 Comments of Eversource Energy

Attachment 8 Page 7 of 20

000164

Page 8: Vice President, Natural Gas Markets Planning Advisory ... · Presentation to Planning Advisory Committee . April 29, 2014 . Kevin Petak . Vice President, Natural Gas Markets . ICF

LDC

Fir

m D

em

and

: R

evis

ion

to

LD

C F

irm

De

man

d M

od

el

B

ased

on

th

e n

ew L

DC

sen

do

ut

dat

a, IC

F re

des

ign

s it

s m

od

el f

or

win

ter

dai

ly L

DC

fir

m d

eman

d.

Th

e re

vise

d d

esig

n d

ay d

eman

d is

ab

ou

t 3

% lo

wer

th

an IC

F’s

ori

gin

al e

stim

ate

at t

he

pea

k.

H

ow

ever

, th

e re

vise

d p

roje

ctio

ns

for

dem

and

s b

etw

een

63

an

d 4

5

HD

Ds

(2 t

o 2

0 d

egre

es F

) ar

e h

igh

er t

han

ICF’

s o

rigi

nal

p

roje

ctio

n.

8

Ap

ril 2

9, 2

01

4 P

AC

Mee

tin

g

3,2

50

3,5

00

3,7

50

4,0

00

4,2

50

4,5

00

54

5

5

56

5

7

58

5

9

60

6

1

62

6

3

64

6

5

66

LDC Sendout (1,000 Dth)

He

atin

g D

egr

ee

Day

s

Win

ter

Dai

ly L

DC

Fir

m D

em

and

:

4-D

ay S

amp

le D

ata

vers

us

Mo

de

l Pro

ject

ion

s

Ori

gin

al L

DC

Dem

and

Mo

del

Rev

ised

LD

C D

eman

d M

od

el

Docket No. IR 15-124 Comments of Eversource Energy

Attachment 8 Page 8 of 20

000165

Page 9: Vice President, Natural Gas Markets Planning Advisory ... · Presentation to Planning Advisory Committee . April 29, 2014 . Kevin Petak . Vice President, Natural Gas Markets . ICF

LDC

Fir

m D

em

and

: O

rigi

nal

an

d R

evis

ed

Est

imat

es

for

Win

ter

20

13

/14

9

Ap

ril 2

9, 2

01

4 P

AC

Mee

tin

g

0

50

0

1,0

00

1,5

00

2,0

00

2,5

00

3,0

00

3,5

00

4,0

00

4,5

00

1

10

2

0

30

4

0

50

6

0

70

8

0

90

LDC Firm Demand (1,000 Dth)

12

/1/1

3 t

hro

ugh

2/2

8/1

4, O

rde

red

Co

lde

st t

o W

arm

est

Day

Rev

ised

Mo

del

Ori

gin

al M

od

el

B

ased

on

th

is w

inte

r’s

aver

age

d

aily

tem

per

atu

res,

th

e O

rigi

nal

an

d R

evis

ed m

od

els

hav

e si

mila

r re

sult

s fo

r b

oth

Pe

ak-D

ay D

eman

d a

nd

90

-Day

To

tal D

eman

d.

H

ow

ever

, th

e R

evis

ed m

od

el’s

lo

ad c

urv

e h

as a

Ste

eper

Slo

pe

than

th

e O

rigi

nal

mo

del

:

–LD

C d

eman

d a

vera

ges

5%

h

igh

er o

n t

he

30

Hig

hes

t D

ays.

–LD

C d

eman

d a

vera

ges

4%

lo

wer

on

th

e 6

0 L

ow

est

Day

s.

Docket No. IR 15-124 Comments of Eversource Energy

Attachment 8 Page 9 of 20

000166

Page 10: Vice President, Natural Gas Markets Planning Advisory ... · Presentation to Planning Advisory Committee . April 29, 2014 . Kevin Petak . Vice President, Natural Gas Markets . ICF

Gas

Su

pp

lies:

P

ipe

line

Cap

acit

ies

and

Flo

ws

10

A

pri

l 29

, 20

14

PA

C M

eeti

ng

In

Ph

ase

II, IC

F u

pd

ated

it’s

ass

essm

ent

of

con

trac

ted

pip

elin

e ca

pac

ity

into

New

En

glan

d.

–Fo

r P

has

e II,

ICF

esti

mat

ed c

on

trac

ted

ca

pac

ity

into

th

e re

gio

n is

3,7

19

MM

cf/d

.

–IC

F cu

rren

tly

pro

ject

s th

at c

apac

ity

add

itio

ns

on

Alg

on

qu

in a

nd

Ten

nes

see

will

ad

d a

to

tal o

f 4

14

MM

cf/d

of

cap

acit

y in

N

ove

mb

er 2

01

6; t

his

is s

ligh

tly

low

er t

han

th

e P

has

e II

pro

ject

ion

of

45

0 M

Mcf

/d.

IC

F co

mp

ared

th

is w

inte

r’s

dai

ly f

low

s (d

eriv

ed fr

om

no

min

atio

n d

ata

po

sted

on

th

e p

ipel

ines

’ ele

ctro

nic

bu

lleti

n b

oar

ds)

to

ou

r cu

rren

t ca

pac

ity

assu

mp

tio

n.

A

s in

pas

t ye

ars,

we

ob

serv

ed t

hat

n

om

inat

ion

s o

n s

ever

al p

ipel

ines

wer

e sl

igh

tly

hig

her

th

an IC

F’s

esti

mat

e o

f co

ntr

acte

d c

apac

ity

on

a f

ew d

ays;

on

Ja

nu

ary

3 (

the

pea

k d

eman

d d

ay),

to

tal f

low

s w

ere

abo

ut

10

0 M

Mcf

/d (

~2%

) ab

ove

ag

greg

ate

pip

elin

e ca

pac

ity.

–H

ow

ever

, flo

ws

wer

e b

elo

w a

ggre

gate

ca

pac

ity

on

sev

eral

oth

er h

igh

dem

and

d

ays;

th

eref

ore

we

hav

e n

ot

chan

ged

ou

r es

tim

ate

of

curr

ent

pip

elin

e ca

pac

ity.

-

50

0

1,0

00

1,5

00

2,0

00

2,5

00

3,0

00

3,5

00

4,0

00

MMcf / 1,000 Dth

New

En

glan

d In

-Bo

un

d P

ipe

line

s:

Agg

rega

te F

low

s ve

rsu

s A

ggre

gate

Cap

acit

y

Tota

l Co

ntr

acte

d P

ipel

ine

Cap

acit

y in

to N

ew E

ngl

and

Ob

serv

ed D

aily

Pip

elin

e Fl

ow

s, W

inte

r 2

01

3/1

4

Docket No. IR 15-124 Comments of Eversource Energy

Attachment 8 Page 10 of 20

000167

Page 11: Vice President, Natural Gas Markets Planning Advisory ... · Presentation to Planning Advisory Committee . April 29, 2014 . Kevin Petak . Vice President, Natural Gas Markets . ICF

Gas

Su

pp

lies:

LN

G a

nd

Pro

pan

e-A

ir P

eak

Sh

avin

g Se

nd

ou

t

11

A

pri

l 29

, 20

14

PA

C M

eeti

ng

Th

e LD

Cs

mee

t a

po

rtio

n o

f th

eir

pea

k w

inte

r lo

ads

wit

h s

atel

lite

LNG

an

d p

rop

ane-

air

pea

k sh

avin

g fa

cilit

ies.

Th

e LD

Cs

did

no

t p

rovi

de

any

dat

a o

n d

aily

sen

do

ut

fro

m t

hei

r p

eak

shav

ing

faci

litie

s, b

ut

we

can

im

plic

itly

arr

ive

at u

sage

: Im

plie

d P

eak

Sh

avin

g Se

nd

ou

t =

LD

C S

en

do

ut

-

LDC

Pip

elin

e N

om

inat

ion

s

Th

e R

evis

ed M

od

el o

f p

eak

shav

ing

sen

do

ut

ind

icat

es h

igh

er

uti

lizat

ion

on

“n

ear-

pea

k” w

inte

r

day

s, w

hen

tem

per

atu

res

are

bel

ow

10

deg

rees

F.

0

20

0

40

0

60

0

80

0

1,0

00

1,2

00

1,4

00

1,6

00

54

5

5

56

5

7

58

5

9

60

6

1

62

6

3

64

6

5

66

Peak Shaving Sendout (1,000 Dth)

Hea

tin

g D

egr

ee

Day

s

Win

ter

Dai

ly P

eak

Sh

avin

g Se

nd

ou

t:

Imp

lied

Val

ue

s vs

Mo

de

led

Pro

ject

ion

s

Ori

gin

al M

od

el

Rev

ised

Mo

del

Imp

lied

Pea

k Sh

avin

g Se

nd

ou

t

Docket No. IR 15-124 Comments of Eversource Energy

Attachment 8 Page 11 of 20

000168

Page 12: Vice President, Natural Gas Markets Planning Advisory ... · Presentation to Planning Advisory Committee . April 29, 2014 . Kevin Petak . Vice President, Natural Gas Markets . ICF

12

Gas

Su

pp

lies:

M

&N

Pip

elin

e W

inte

r D

aily

Flo

ws

(1

00

) -

10

0

20

0

30

0

40

0

50

0

60

0

70

0

80

0

90

0

1,0

00

1

10

2

0

30

4

0

50

6

0

70

8

0

90

M&N Flow, MMcf/d

12

/1/1

3 t

hro

ugh

2/2

8/1

4, O

rder

ed C

old

est

to W

arm

est

Day

Act

ual

20

13

/14

Ori

gin

al M

od

el

Rev

ised

Mo

del

M&

N f

low

ed

no

rth

(re

vers

e) D

ece

mb

er 1

, 2 &

3.

Ap

ril 2

9, 2

01

4 P

AC

Mee

tin

g

M

&N

gas

su

pp

lies

com

e fr

om

a

com

bin

atio

n o

f Ea

ster

n C

anad

ian

o

ffsh

ore

pro

du

ctio

n a

nd

LN

G

sen

do

ut

fro

m t

he

Can

apo

rt t

erm

inal

.

Th

e P

has

e II

pro

ject

ion

s an

tici

pat

ed

hig

her

ave

rage

dai

ly f

low

s o

n M

&N

th

is w

inte

r d

ue

to t

he

star

tup

of

Dee

p P

anu

ke in

Au

gust

20

13

.

•Th

e D

eep

Pan

uke

off

sho

re

pla

tfo

rm h

as a

max

imu

m

cap

acit

y o

f 3

00

MM

cf/d

, bu

t fl

ow

s h

ave

bee

n in

term

itte

nt

sin

ce s

tart

up

.

B

ased

on

th

e cu

rren

t d

ata,

ICF

has

re

du

ced

its

pro

ject

ion

fo

r M

&N

av

erag

e w

inte

r fl

ow

s.

–M

&N

is s

till

likel

y to

flo

w f

ull

on

th

e co

ldes

t d

ays.

–H

ow

ever

, pro

ject

ed f

low

s o

n o

ff-

pea

k d

ays

no

w a

vera

ge a

bo

ut

30

0

MM

cf/d

less

.

–D

eclin

ing

off

sho

re p

rod

uct

ion

an

d

incr

easi

ng

dem

and

s in

Eas

tern

C

anad

a w

ill c

on

tin

ue

to r

edu

ced

su

pp

lies

avai

lab

le f

or

exp

ort

th

rou

gh 2

02

0.

Docket No. IR 15-124 Comments of Eversource Energy

Attachment 8 Page 12 of 20

000169

Page 13: Vice President, Natural Gas Markets Planning Advisory ... · Presentation to Planning Advisory Committee . April 29, 2014 . Kevin Petak . Vice President, Natural Gas Markets . ICF

13

Gas

Su

pp

lies:

D

istr

igas

Win

ter

Dai

ly S

en

do

ut

Ap

ril 2

9, 2

01

4 P

AC

Mee

tin

g

0

50

10

0

15

0

20

0

25

0

30

0

35

0

40

0

45

0

1

10

2

0

30

4

0

50

6

0

70

8

0

90

Distrigas Sendout MMcf/d

12

/1/1

3 t

hro

ugh

2/2

8/1

4, O

rder

ed C

old

est

to W

arm

est

Day

Act

ual

20

13

/14

Ori

gin

al M

od

el

Rev

ised

Mo

del

Th

e o

rigi

nal

mo

del

fo

r D

istr

igas

se

nd

ou

t w

as b

ased

on

th

e h

isto

rica

l 20

12

/13

win

ter

sen

do

ut.

*

–D

uri

ng

the

20

12

/13

win

ter,

D

istr

igas

sen

do

ut

aver

aged

2

80

MM

cf/d

.

Th

is w

inte

r, D

istr

igas

sen

do

ut

aver

aged

on

ly a

bo

ut

10

0

MM

cf/d

.

–Th

e R

evis

ed m

od

el h

as

sen

do

ut

abo

ut

50

MM

cf/d

lo

wer

on

pea

k, a

nd

ave

ragi

ng

abo

ut

15

0 M

Mcf

/d lo

wer

th

rou

gho

ut

the

win

ter.

* D

istr

iga

s d

aily

se

nd

ou

t in

clu

de

s r

ega

sific

ation to

Mystic 8

& 9

, a

nd

de

live

rie

s to

Alg

on

qu

in a

nd

Te

nn

essee

pip

elin

es;

do

es n

ot in

clu

de

tru

cke

d d

eliv

erie

s o

r direct co

nn

ectio

n to

Bo

sto

n G

as.

Docket No. IR 15-124 Comments of Eversource Energy

Attachment 8 Page 13 of 20

000170

Page 14: Vice President, Natural Gas Markets Planning Advisory ... · Presentation to Planning Advisory Committee . April 29, 2014 . Kevin Petak . Vice President, Natural Gas Markets . ICF

14

Rev

ise

d M

od

el R

esu

lts

for

20

14

/15

Win

ter:

Gas

Su

pp

lies

Re

mai

nin

g fo

r El

ect

ric

Ge

ne

rato

rs

Ap

ril 2

9, 2

01

4 P

AC

Mee

tin

g

-

50

0

1,0

00

1,5

00

2,0

00

2,5

00

3,0

00

1

5

10

1

5

20

2

5

30

3

5

40

4

5

50

5

5

60

6

5

70

7

5

80

8

5

90

1,000 Dth per Day

Win

ter

Day

s D

ece

mb

er

20

13

th

rou

gh F

eb

ruar

y 2

01

4, O

rde

red

Co

lde

st t

o W

arm

est

Day

Ori

gin

al M

od

el

Rev

ise

d M

od

el

Ass

um

ing

20

13

/14

win

ter

tem

per

atu

res

and

all

pip

elin

es o

per

ate

at f

ull

cap

acit

y, g

as s

up

plie

s av

aila

ble

to

gen

erat

ors

nex

t w

inte

r w

ill b

e

be

low

1,0

00

MM

cf/d

fo

r ~4

5 d

ays,

an

d

be

low

50

0 M

Mcf

/d f

or

20

day

s.

Un

der

th

ese

wea

ther

co

nd

itio

ns,

an

y m

ajo

r d

isru

pti

on

to

ga

s in

fra

stru

ctu

re

wo

uld

red

uce

rem

ain

ing

ga

s su

pp

lies

to n

ear

zero

.

Docket No. IR 15-124 Comments of Eversource Energy

Attachment 8 Page 14 of 20

000171

Page 15: Vice President, Natural Gas Markets Planning Advisory ... · Presentation to Planning Advisory Committee . April 29, 2014 . Kevin Petak . Vice President, Natural Gas Markets . ICF

Ele

ctri

c G

ene

rati

on

Ret

ire

me

nts

in t

he

FC

A 8

Cas

es

Ap

ril 2

9, 2

01

4 P

AC

Mee

tin

g 1

5

Are

a U

nit

Nam

e

Typ

e

Pri

mar

y Fu

el

Ch

ange

in

C

apac

ity

(MW

)

SEM

A

SOM

ERSE

T 6

ST

BIT

-1

09

.1

CT

AES

TH

AM

ES

ST

BIT

-1

84

.7

SWC

T B

RID

GEP

OR

T H

AR

BO

R 2

ST

R

FO

-13

0.5

NO

R

NO

RW

ALK

HA

RB

OR

2

ST

RFO

-1

68

.0

NO

R

NO

RW

ALK

HA

RB

OR

1

ST

RFO

-1

62

.0

BO

ST

SALE

M H

AR

BO

R 4

ST

R

FO

-43

1.0

BO

ST

SALE

M H

AR

BO

R 3

ST

B

IT

-14

9.8

VT

VT

YAN

KEE

NU

CLE

AR

ST

NU

C

-62

0.2

WM

A

MT

TOM

ST

B

IT

-14

4.4

RI

BR

AYT

ON

PT

3

ST

BIT

-6

12

.0

RI

BR

AYT

ON

PT

4

ST

RFO

-4

35

.0

RI

BR

AYT

ON

PT

2

ST

BIT

-2

44

.0

RI

BR

AYT

ON

PT

1

ST

BIT

-2

43

.5

0

20

0

40

0

60

0

80

0

10

00

12

00

14

00

16

00

18

00

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

Retirements (MW)

Ye

ar

Re

tire

me

nts

in F

CA

8 C

ase

s RFO

w/

Gas

RFO

Co

al w

/ G

as

Co

al

Nu

c

To

tal =

3,6

34

MW

Docket No. IR 15-124 Comments of Eversource Energy

Attachment 8 Page 15 of 20

000172

Page 16: Vice President, Natural Gas Markets Planning Advisory ... · Presentation to Planning Advisory Committee . April 29, 2014 . Kevin Petak . Vice President, Natural Gas Markets . ICF

Ass

um

ed

Fu

el P

rice

s fo

r th

e F

CA

8 C

ases

Ap

ril 2

9, 2

01

4 P

AC

Mee

tin

g 1

6

FUEL

PR

ICES

($

/MM

Btu

)

Bas

e

Low

H

igh

Ex

tre

me

Ass

um

ed

H

eat

Rat

e

(MM

Btu

/ M

Wh

)

Nat

ura

l Gas

$

4.6

$

1.1

5

$9

.19

$

22

.98

7

.5

Co

al

$3

.34

$

3.3

4

$3

.34

$

3.3

4

10

.0

Oil

$1

2.7

2

$1

2.7

2

$1

9.0

8

$1

2.7

2

10

.0

Dis

tilla

te

$2

3.4

2

$2

3.4

2

$4

0.9

8

$2

3.4

2

10

.0

ILLU

STR

ATI

VE

DIS

PATC

H P

RIC

ES (

$/M

Wh

)

Bas

e

Low

H

igh

Ex

tre

me

NG

CC

$

34

.47

$

8.6

2

$6

8.9

3

$1

72

.35

Co

al

$3

3.3

8

$3

3.3

8

$3

3.3

8

$3

3.3

8

RFO

$

12

7.2

1

$1

27

.21

$

19

0.8

1

$1

27

.21

DFO

$

23

4.1

8

$2

34

.18

$

40

9.8

2

$2

34

.18

0

50

10

0

15

0

20

0

25

0

30

0

35

0

40

0

45

0

Bas

e Lo

w F

uel

H

igh

Fu

el

Extr

eme

Gas

Pri

ce

Dispatch Price ($/MWh)

Illu

stra

tive

Dis

pat

ch P

rice

s ($

/MW

h)

NG

CC

(7

.5 M

Btu

/MW

h)

Co

al (

10

.0 M

Btu

/MW

h)

RFO

(1

0.0

MB

tu/M

Wh

) D

FO (

10

.0 M

Btu

/MW

h)

Docket No. IR 15-124 Comments of Eversource Energy

Attachment 8 Page 16 of 20

000173

Page 17: Vice President, Natural Gas Markets Planning Advisory ... · Presentation to Planning Advisory Committee . April 29, 2014 . Kevin Petak . Vice President, Natural Gas Markets . ICF

17

New

ISO

-NE

Pro

ject

ion

s fo

r

Ele

ctri

c G

en

era

tio

n G

as D

em

and

(co

nti

nu

ed

)

0

50

0

1,0

00

1,5

00

2,0

00

2,5

00

3,0

00

3,5

00

4,0

00

2013/14

2014/15

2015/16

2016/17

2017/18

2018/19

2019/20

Winter Gas Demand (Thous Dth per day)

Win

ter

Pe

ak D

ay G

as D

em

and

E1SN

P8

9L

E11

NP

85

0

E11

NP

89

0

E11

NP

89

H

E1SN

P8

9H

E1SN

P8

5H

E1SN

P8

5L

E1SN

P8

9E

E11

NP

89

E 0

50

0

1,0

00

1,5

00

2,0

00

2,5

00

3,0

00

3,5

00

4,0

00

2014

2015

2016

2017

2018

2019

2020

Summer Gas Demand (Thous Dth per day)

Sum

me

r P

eak

Day

Gas

De

man

d

Ap

ril 2

9, 2

01

4 P

AC

Mee

tin

g

Hig

he

st G

as D

em

and

E1SN

P89

LLo

w G

as P

rice

s, S

eab

roo

k-O

ut,

90/

10 F

ore

cast

E11N

P85

0B

ase

Gas

Pri

ces,

Se

abro

ok-

In, 5

0/50

Fo

reca

st

E11N

P89

0B

ase

Gas

Pri

ces,

Se

abro

ok-

In, 9

0/10

Fo

reca

st

E11N

P89

HH

igh

Gas

Pri

ces,

Se

abro

ok-

In, 9

0/10

Fo

reca

st

E1SN

P89

HH

igh

Gas

Pri

ces,

Se

abro

ok-

Ou

t, 9

0/10

Fo

reca

st

E1SN

P85

HH

igh

Gas

Pri

ces,

Se

abro

ok-

Ou

t, 5

0/50

Fo

reca

st

E1SN

P89

EEX

TREM

E G

as P

rice

s, S

eab

roo

k-O

ut,

90/

10 F

ore

cast

Low

est

Gas

De

man

dE1

1NP

89E

EXTR

EME

Gas

Pri

ces,

Se

abro

ok-

In, 9

0/10

Fo

reca

st

Docket No. IR 15-124 Comments of Eversource Energy

Attachment 8 Page 17 of 20

000174

Page 18: Vice President, Natural Gas Markets Planning Advisory ... · Presentation to Planning Advisory Committee . April 29, 2014 . Kevin Petak . Vice President, Natural Gas Markets . ICF

18

Tw

o o

f th

e n

ew d

isp

atch

cas

es

pro

vid

ed b

y IS

O-N

E as

sum

e $

23

/MM

Btu

gas

pri

ces

(sim

ilar

to t

his

w

inte

r’s

aver

age

spo

t p

rice

).

–Th

ese

“Ext

rem

e G

as P

rice

” ca

ses

mak

e m

ost

(b

ut

no

t al

l) o

f th

e ga

s-fi

red

un

its

mo

re e

xpen

sive

to

d

isp

atch

th

an o

ther

res

ou

rces

.

A

ssu

min

g w

inte

r 2

01

3/1

4 w

eath

er

con

dit

ion

s, m

ost

oil-

fire

d u

nit

s in

-m

erit

, an

d S

eab

roo

k in

clu

ded

in t

he

dis

pat

ch, g

as s

up

plie

s av

aila

ble

to

ge

ner

ato

rs a

re b

arel

y ad

equ

ate

thro

ugh

20

17

/18

, an

d t

hen

in d

efic

it

by

abo

ut

10

0 M

Mcf

/d (

~40

0 M

W).

W

ith

Sea

bro

ok

off

line,

gas

su

pp

lies

are

in d

efic

it t

hro

ugh

ou

t th

e fo

reca

st

by

as m

uch

as

30

0 M

Mcf

/d (

1,2

50

M

W).

Rev

ise

d P

roje

ctio

n f

or

Win

ter

Pe

ak D

ay

Gas

Def

icit

wit

h “

Extr

em

e G

as P

rice

s”

Ap

ril 2

9, 2

01

4 P

AC

Mee

tin

g

-62

50

-50

00

-37

50

-25

00

-12

50

0

12

50

-15

00

-12

50

-10

00

-75

0

-50

0

-25

0 0

25

0

50

0

20

14

/15

2

01

5/1

6

20

16

/17

2

01

7/1

8

20

18

/19

2

01

9/2

0

MW Equivalent

1,000s of Dth/d

Extr

eme

Gas

Pri

ces,

90

/10

Lo

ad, S

eab

roo

k IN

Extr

eme

Gas

Pri

ces,

90

/10

Lo

ad, S

eab

roo

k O

UT

Po

we

r Se

cto

r W

inte

r P

eak

Day

Su

pp

ly D

efi

cits

, “E

xtre

me

Gas

Pri

ce”

Sce

nar

ios

Ass

um

ing

20

13

/14

We

ath

er

AIM

/Ten

nes

see

exp

ansi

on

s te

mp

ora

rily

re

du

ce d

efic

its

du

rin

g th

e w

inte

r o

f 2

01

6/1

7

Docket No. IR 15-124 Comments of Eversource Energy

Attachment 8 Page 18 of 20

000175

Page 19: Vice President, Natural Gas Markets Planning Advisory ... · Presentation to Planning Advisory Committee . April 29, 2014 . Kevin Petak . Vice President, Natural Gas Markets . ICF

19

Sum

mar

y an

d C

on

clu

sio

ns

Ap

ril 2

9, 2

01

4 P

AC

Mee

tin

g

C

om

par

ed t

he

Ph

ase

II p

roje

ctio

ns,

th

e R

evis

ed p

roje

ctio

ns

for

gas

sup

plie

s av

aila

ble

to

ele

ctri

c ge

ner

atio

n

thro

ugh

ou

t th

e w

inte

r av

erag

e n

earl

y 5

00

MM

cf/d

low

er.

–R

evis

ed p

roje

ctio

n fo

r LD

C f

irm

dem

and

is s

ligh

tly

low

er o

n t

he

des

ign

day

(0

deg

ree

s F)

, bu

t h

igh

er o

n d

ays

wit

h

tem

per

atu

res

bet

wee

n 3

an

d 3

0 d

egre

es

F.

–Lo

wer

an

tici

pat

ed p

rod

uct

ion

fro

m E

aste

rn C

anad

ian

off

sho

re f

ield

s re

du

ces

exp

ecte

d s

up

plie

s vi

a M

&N

Pip

elin

e; C

anap

ort

LN

G s

end

ou

t lim

ited

to

on

ly t

he

hig

hes

t d

eman

d d

ays.

–D

istr

igas

sen

do

ut

this

win

ter

aver

aged

ab

ou

t 1

10

MM

cf/d

(~1

50

less

th

an

last

yea

r) d

esp

ite

cold

er t

emp

erat

ure

s.

G

iven

th

e p

roje

cted

gas

su

pp

lies,

ele

ctri

c sy

stem

rel

iab

ility

du

rin

g th

e w

inte

r m

on

ths

wo

uld

be

com

pro

mis

ed

by

sust

ain

ed c

old

wea

ther

.

–If

we

assu

me

“Ext

rem

e G

as P

rice

s” (

>$2

0/M

MB

tu, m

ean

ing

man

y o

il u

nit

s w

ou

ld b

e in

-mer

it) a

nd

th

e sa

me

wea

ther

co

nd

itio

ns

as t

his

pas

t w

inte

r, w

inte

r p

eak

day

gas

su

pp

lies

will

be

bar

ely

adeq

uat

e o

r sl

igh

tly

in d

efic

it t

hro

ugh

20

20

, a

s lo

ng

a

s th

ere

are

no

ma

jor

no

n-g

as

fire

d c

ap

aci

ty o

uta

ges

; a d

isru

pti

on

to

gas

su

pp

lies

or

a n

ucl

ear

un

it o

uta

ge w

ou

ld r

esu

lt in

a

seri

ou

s ga

s su

pp

ly d

efic

it.

D

uri

ng

the

sum

mer

, LD

C f

irm

dem

and

is o

nly

ab

ou

t 2

0%

of

the

win

ter

pea

k d

eman

d, s

o p

ipel

ine

cap

acit

y is

le

ss li

kely

to

be

con

stra

ined

.

–Th

e A

IM/T

enn

esse

e e

xpan

sio

ns

will

ad

d 4

14

MM

cf/d

of

cap

acit

y b

y N

ove

mb

er 2

01

6, s

o t

he

tota

l in

-bo

un

d p

ipel

ine

cap

acit

y w

ill in

crea

se t

o a

bo

ut

4,1

00

MM

cf/d

, wel

l ab

ove

pro

ject

ed s

um

me

r p

eak

day

ele

ctri

c se

cto

r ga

s d

eman

d.

•H

ow

ever

, th

at t

ota

l in

clu

des

83

3 M

Mcf

/d o

f ca

pac

ity

on

M&

N P

ipel

ine.

M&

N is

un

likel

y to

co

ntr

ibu

te m

uch

to

New

En

glan

d’s

su

mm

er g

as s

up

plie

s; in

fac

t, M

&N

can

act

ual

ly r

ever

sed

flo

w, r

edu

cin

g n

et s

up

plie

s av

aila

ble

in N

ew

En

glan

d.

–C

erta

in e

ven

ts o

r co

mb

inat

ion

s o

f ev

ents

(h

igh

load

co

nd

itio

ns,

pip

elin

e ca

pac

ity

off

line

for

mai

nte

nan

ce, n

ucl

ear

ou

tage

s,

etc.

) co

uld

res

ult

in a

gas

su

pp

ly c

on

stra

ints

eve

n w

ith

in t

he

sum

me

r.

Docket No. IR 15-124 Comments of Eversource Energy

Attachment 8 Page 19 of 20

000176

Page 20: Vice President, Natural Gas Markets Planning Advisory ... · Presentation to Planning Advisory Committee . April 29, 2014 . Kevin Petak . Vice President, Natural Gas Markets . ICF

20

Qu

esti

on

s/C

om

men

ts

Ap

ril 2

9, 2

01

4 P

AC

Mee

tin

g

Docket No. IR 15-124 Comments of Eversource Energy

Attachment 8 Page 20 of 20

000177