Millennium Pipeline Company, L.L.C. 6 th Annual Customer Meeting October 14, 2015 Joe Shields President 1
Welcome 2
Presenters Ron Happach Chief Operating Officer, Millennium Pipeline Michelle Brocklesby Director of Optimization, Millennium Pipeline Mark Bering VP Business Development, Millennium Pipeline James Eckert - VP Commercial Operations, Columbia Pipeline Group Nikki Bruno Director, Business Development, Spectra Energy 3
Vision 4
Vision Ø Millennium Pipeline to become the Premier Pipeline in the Northeast Ø Millennium Pipeline to achieve the highest Customer Service Rating Ø Millennium Pipeline to achieve the highest Reliability Rating Ø Millennium Pipeline to bring Added Value to Customer Contracts Ø Aid in growing customer business by bringing value to meet customer needs Ø Quality, Experienced Staffing 5
Customer Service 6
Customer Service Survey Overview Ø Customer surveys conducted in August and September Ø Survey managed by Wayne Rechnitz of Energy Insights Ø Survey categories for Executive, Commercial, Scheduling, Gas Controls, and Back/Middle Office Ø THANK YOU to all those that participated Ø Final Results of survey to be released late October 7
Preliminary Survey Results Ø Flexibility Ø Communication Ø Reliability Ø Navigates Ø Decision Making Ø Ron Happach is a Super Star 8
Organization 9
Organizational Changes Millennium Pipeline Company, L.L.C. Management Organization Structure - 2015 Joseph P. Shields * President Erin Fennell Executive Marketing Assistant Ron Happach * Chief Operating Officer Michael Armstrong Director of Project Mgmt, Operations & Engineering Michelle Brocklesby Director Optimization Mark Bering * VP Business Development John V. Keith * VP Finance & Controller Gary Kruse * VP General Counsel & Secretary Randy Parker Project Manager Jeff Reavis Optimization Manager Audrey Bottari Executive Administrative Assistant Cynthia Castro Staff Accountant Christina Woodburn Records Mgmt/ Contract Admin Executive Officer * Full Time Employees 13 Detailed Org Chart 7/22/15 10
Organization Millennium Pipeline Company LLC DTE Energy - 26.25% National Grid/Keyspan 26.25% Columbia Pipeline Group 47.5% Columbia Pipeline Group Services Provided: Gas Control/Operations Customer Service Navigates Support Finance and Accounting Support 11
To Summarize Millennium Pipeline is improving but we have a lot of work to do Millennium is well positioned to see continued progress toward our vision of becoming the premier pipeline in the Northeast 12
Millennium Pipeline Overview Ron Happach Chief Operating Officer 13
Reliability Ø Reliability was emphasized last year and will be continued to be emphasized, evaluated and measured Ø How is Reliability being defined Ø FT -1 flows / scheduled is 100% Ø FT2 & IT only sold when there is no impact on FT-1 Ø Facilities Physically Available to Flow Volumes Ø Strong Operations Team Ø No FT-1 Cuts Last Year Except for Force Majeure Ø FT2 and IT continues to be very limited 14
Reliability (continued) Ø Millennium Pipeline Facilities Ø 244 Mile Single Barrel Pipeline Ø Ø ~ East of Corning 182 Miles of 30 Pipeline and 18 Miles of 24 Ø 3 Compressor Stations Ø Corning - Mars 100 (15,900 HP) Ø Hancock Mars 100 (15,900 HP) Ø Minisink 2 Centaurs ( 6,130 HP / each) ~ West of Corning ~ 44 Miles of 12 Pipeline Ø ~ Average Volumes 2014 / 2015 1.2 to 1.3 Bcf / day Ø Millennium s Pipeline System is Being Highly Utilized Year Around Particularly Starting at Corning and Going East 15
Millennium Map 16
Wagner East Utilization for 2015 YTD Wagoner East 800,000 700,000 600,000 500,000 400,000 300,000 200,000 Pigging 100,000 0 11/1/2014 12/1/2014 1/1/2015 2/1/2015 3/1/2015 4/1/2015 5/1/2015 6/1/2015 7/1/2015 8/1/2015 9/1/2015 17
Reliability (continued) Ø How Do We Mitigate Issues When They Occur? Ø Work Closely and Communicate Daily with Our Major Interconnected Pipelines (TGP, NFG, CW, Williams, DTE, Algonquin, etc.) Ø Communication and Working Together During Outages Goes Both Ways, and All Parties Have Worked Well To Insure Customers Gas Flows Ø Be Prepared for the Unexpected Ø Constantly Monitor and Re-evaluate the System Ø Strong Operations Team Ø Experienced / Dedicated 18
Reliability (continued) Ø Force Majeure ( FM ) / Pipeline - Compressor Maintenance Ø Force Majeure - Experienced Liquid Contamination Last February Upstream of the Hancock CS Ø Contamination was a Black, Oily Substance Consistency of Lubrication Oil, Kerosene and Glycol Ø Hancock CS was Shutdown on Several Days Due to Change Out Replace Filters in Filter Separators Ø Declared FM on 4 Days Reducing Capacities Between 75,000 Dth / d to 231,000 Dth / d Ø All Receipt Points Have Filter Separator Facilities 19
Reliability (continued) Ø Additional Actions Being Taken To Prevent Further Re- Occurrence of Pipeline Contamination Ø Reviewed ALL Receipt Locations for Properly Designed Filter Separators, Controls and Monitoring Equipment Ø Install Additional Filter Separators, Controls and Monitoring at Various Millennium Tap Locations Over the Next 2 Years Ø Where Filter-Separation Already Exists At the Tap Location, Install Additional Controls and Monitoring (e.g. Positioners and Seals on FS By-pass Valves) Ø Evaluate Installing Additional Pig L/Rs to Minimize Pig Run Times (e.g. DOT requires periodic smart pig runs) 20
Reliability (continued) Ø Pipeline / Compressor Maintenance Mitigating Measures Ø Schedule Activities to Correspond with Other Interconnecting Pipeline Activities to Minimize Overall Impact to Customer Ø During Maintenance Activities Where Significant Flows Were to be Impacted;; Millennium Bought Gas At to Keep Customers Whole (e.g. Chemical Pig Cleaning Runs Last April ) Ø Millennium Bought Storage to Help w Operational Issues 21
Customer Feedback Ø Reliability (Discussed Above) Ø Includes Lack of Operational Flexibility Highly Utilized Single Barrel Pipeline Ø Ownership Ø Who Do Customers Call When There are Issues Ø Jeff Reavis Manager, Hub Optimization Cell: (281) 453-5307 Ø Michelle Brocklesby Director, Optimization Cell: (214) 476-2442 Ø Ron Happach Chief Operation Officer Cell: (816) 885-7632 Ø Communication Ø Better Communication With Customers Ø Quarterly Meetings Ø Better Communications Internally 22
The Year in Review Michelle Brocklesby Director of Optimization 23
Changes Personnel Tools Flow 24
Personnel Jeff Reavis Manager, optimization Mike Armstrong Director, Project Management Randy Parker Project Manager Customer Service Team 25
1 st Implementation of the VIC Voluntary Interruption Credits A tool for you to utilize that will help to minimize the impact of planned outages 1 st implemented during pigging of the mainline in April Maximize reservation credits during an outage by NOT nominating The less you nominate, the more credit you receive No upper limit on what you can bid 26
Tariff Changes Sent out for 30-day customer commentary in August Filed in September Forms allowing for electronic forms of communication and confirmation Streamlined forms 27
Navigates Changes July 2015 technology upgrade, better performance Sept 2015 Operationally available capacity Nomination upload template Improvements to measurement data processings Nov 2015 Gas/electric coordinate background processes Begin phased implementation of point consolidation (one receipt/delivery point) Scheduling process improvements 2016 continued improvements and enhancements 28
2015 RAM RAM Component Projected Volumes as per RAM filing MDth Review of first 6 months of 2015 Current Fuel 2,400 Fuel quantities are at projected levels. Millennium continues to monitor the data and operational changes resulting from the use of its new system Current LAUF 430 LAUF for the first ½ of 2015 is at projected levels. RAM under-recovery surcharge 161 Under-recovery balance is being reduced as expected. Throughput 504,000 Throughput is on pace to meet projections. Maintaining current RAM rate through March 2016 Anticipate overall RAM rate in the range of 0.5% to 0.7% in 2016 29
3 Year Supply History 30
3 Year Demand History 31
East Pool Trading 1,200,000 East Pool Volumes 1,000,000 800,000 MMBTU 600,000 400,000 200,000 0 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Month 32
IT Volumes IT Volumes 8,000,000 7,000,000 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 0 Nov Dec jan feb mar apr may jun jul aug sep 2014 2015 Over 6.5 bcf less IT moving on Millennium in 2015 33
Winter 2014/15 Flow ( last year) Corning 203 MM Avg. (-157) 256 MM Peak (-95) Holding Point 169 MM Avg. 235 MM Peak Independence 31 MM Avg. (-31) 57 MM Peak (-37) Stagecoach 627 MM Avg. (+44) 760 MM Peak (+59) Laser 298 MM Avg. (+97) 325 MM Peak (+42) Bluestone 446 MM Avg. (+211) 398 MM Peak (+116) Wagoner 48 MM Avg. (+10) 99 MM Peak (+15) Ramapo 725 MM Avg. (+130) 842 MM Peak (+142) 34
Summer 2015 Flow (as of 9/30) Corning 164 MM Avg. (-79) 234 MM Peak (-27) Holding Point 220 MM Avg. (+116) 235 MM Peak (+42) Independence 36 MM Avg. (-18) 46 MM Peak (-40) Stagecoach 617 MM Avg. (+34) 755 MM Peak (+74) Bluestone 486 MM Avg. (+207) 570 MM Peak (+178) Wagoner 43 MM Avg. (-7) 114 MM Peak (+53) Laser 275 MM Avg. (-38) 324 MM Peak (-43) Ramapo 751 MM Avg. (+44) 850 MM Peak (+20) 35
Firm Service Interruptions No cuts to FT1 with the exception of the force majeure FT2 highly limited Winter 2014/Summer 2015 and only be sold when it has no effect on FT1 36
Capacity Increase in capacity at Holding Point (Dominion) interconnect from 235,000 dth/day to 250,000 dth/day West side capacity available Nov 1 47,500 dth/day Stagecoach to Empire 50,000 dth/day Stagecoach to Dominion West side capacity available Mar 1 10,000 dth/day Stagecoach to Empire 37
Ready for Winter Changes designed with YOU in mind More flexibility More stability Streamlined decision-decision making processes Improved communications Winter Arsenal Storage Buying/selling gas 38
Growth Projects Mark Bering VP Business Development 39
Ramapo Expansion Millennium is expanding mainline capacity to Ramapo and other east end delivery points Ø More than 200,000 Dth/d of binding contracts with anchor shippers and open season participants Ø Currently finalizing design Combination of looping and compression Ø FERC Pre-Filing Q4 2015 40
Valley Lateral Project Ø Lateral to serve CPV Valley Energy Center New 650 MW combined cycle power plant Located in Wawayanda, NY Within the NYISO Lower Hudson Valley new capacity zone Target in service date of November 2017 Ø Approximately 7.8 mile lateral to transport at least 127,200 Dth/d Ø FERC pre-filing requested April 30, 2015, received May 19, 2015 Ø Target in service date for the lateral is April 2017 CPV Valley adds 35 Bcf/year of demand to Millennium 41
CPV Valley Energy Center - Location 42
Future Expansions Ø Additional interest in Millennium transportation from the market Accesses low priced Marcellus supply Good connectivity to interstate pipelines and Northeast markets Interest from LDC s and power generation Ø Eastward Expansions Additional expansion capability to Algonquin Ability to get to Constitution very affordably Expansions are scalable Ø Westward Expansions Ability to expand to Empire at Corning or Dominion at Holding Point 43
Questions? 44