2016 Millennium Shipper Meeting Welcome Joe Shields Vision To - PowerPoint PPT Presentation

Connecting communities to cleaner energy 2016 Millennium Shipper Meeting Welcome – Joe Shields

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 Our vision is to provide you with the best customer experience Connecting communities to cleaner energy 2

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 Connecting communities to cleaner energy 3

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. Connecting communities to cleaner energy 4

Millennium Organization Joe Shields - President Erin Fennell – Executive Marketing Assistant Ron Happach – Rick Gardner – John Keith – VP Georgia Carter – Michelle Hook – Chief Operating SVP Business Finance & VP & General Director Outreach Officer Development Controller Counsel Michelle Patrick Riban – Audrey Bottari – Christina Steven Leggett – Brocklesby – Jeff Reavis – Mgr Mike Armstrong Woodward – Mgr System Executive Admin Director – PM Project Acct Director Optimization Design Asst Records Mgmt Optimization Randy Parker – Riochi Giles – Cynthia Castro – Project Mgr Business Analyst Staff Accountant Bruce Page – Project Mgr Connecting communities to cleaner energy 5

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 Connecting communities to cleaner energy 6

Customer Survey Results 8.3 8.2 8.0 8.0 8.0 7.7 7.6 2014 2015 2016 Gas Overall General Senior Mgnt/ Commercial Noms & Sched/ Mid/ Average Control Biz Dvlpmnt Navigates Bk Office Connecting communities to cleaner energy 7

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 Connecting communities to cleaner energy 8

Operational Update Ron Happach

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) Connecting communities to cleaner energy 10

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 Connecting communities to cleaner energy 11

“The 24” Pipeline Section” Connecting communities to cleaner energy 12

Four Year Supply History Supply continues to increase, bringing value to Millennium shippers Connecting communities to cleaner energy 13

Four Year Interconnect History Connecting communities to cleaner energy 14

2015/2016 Winter Flow Summary Direct connected markets average ~200 MM Connecting communities to cleaner energy 15

2016 Summer Flow Summary Direct connected markets average ~165 MM Connecting communities to cleaner energy 16

Commercial Update Michelle Brocklesby Connecting communities to cleaner energy 17

Customer Service Reorganization  MPC Customer Service team  Missy McNamara  Teri Pollack  Ebere Bolton  Contracts  Keri Crawford  Gas Control  Charleston, WV Connecting communities to cleaner energy 18

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 Connecting communities to cleaner energy 19

Firm Transportation • Ramapo capacity provides flexibility for Wagoner deliveries Connecting communities to cleaner energy 20

Three Year IT History Factors impacting IT • Warmer winter • Higher load factor on firm capacity • AIM construction • MPC maintenance Significant drop in IT volumes 2015 to 2016 Connecting communities to cleaner energy 21

Two Year East Pool Volume History East pool liquidity on the rise in 2016 Connecting communities to cleaner energy 22

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 Connecting communities to cleaner energy 23

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 Connecting communities to cleaner energy 24

Business Development Rick Gardner

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 Connecting communities to cleaner energy 26

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 Connecting communities to cleaner energy 27

ESU Project Overview Connecting communities to cleaner energy 28

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 Connecting communities to cleaner energy 29