Algonquin Gas Transmission

Transcription

1 Algonquin Gas Transmission FRQ FILING REVIEW November 6, 2018

2 Background on AGT FRQ Settlements AGT FRQ Settlement Timeline October 30, 2017: AGT filed annual FRQ compliance filing (Docket No. RP18-75) November 29, 2017: FERC Order Accepting and Suspending Tariff Records and Establishing Hearing and Settlement Judge Procedures December 4, 2017: AGT filed partial settlement filed with Commission related to fuel reimbursement for receipts at Beverly, MA February 20, 2018: FERC Order Accepting partial Settlement June 22, 2018: AGT filed Offer of Settlement addressing remaining issues not covered by partial Settlement August 7, 2018: FERC Order Approving Settlement of remaining issues September 1, 2018: Effective Date of Settlement 2

3 Background on AGT FRQ Settlements Key Points in AGT FRQ Settlements Continuation of the 2014 FRQ Settlement with respect to Beverly and Non-Beverly receipts as specified in the partial Settlement Establishment of a Volumetric Fuel Tracker Process of managing and tracking operational purchases and sales Establishment of a System Balancing Account and a forward looking surcharge/credit mechanism based upon projected usage volumes Information sharing on throughput, scheduling priorities, and fuel allocation volumes; formal teleconference following annual FRQ filing Application of AGT FRQ Settlements to negotiated rate agreements that were subject to the previously approved FRQ mechanism Limited moratorium through November 1, 2022: precludes parties from seeking changes to Settlement to be effective prior to December 1,

4 2018 Implementation Timeline for AGT FRQ Settlements Items addressed prior to the October 2018 FRQ Filing: Per Section 1.1 of the Stipulation, AGT started tracking the volumetric fuel imbalance account (no longer monetizing monthly fuel imbalance) on August 1, 2018 Per Section 1.2 of the Stipulation, AGT started to conduct operational purchases/sales using the specified auction process on September 1, 2018 Per Section 1.2 of the Stipulation, AGT started tracking information for each operational gas purchase and/or sale starting on October 2, 2018 Per Section 1.5 of the Stipulation, AGT shared the required information by posting on its LINK website and by service to Settlement Docket on October 26, 2018 with the required follow-up teleconference scheduled for November 6, 2018 Per Section 1.6 of the Stipulation, AGT posted on its LINK website the timeline for implementation, and made the first required tariff filing on August 22, 2018 Items addressed in the October 2018 FRQ Filing: Reconciliation of Beverly / Non-Beverly FRQ collections for February 2018 and March 2018 (per RP , FERC Order issued on February 20, 2018) Per Section 1.4 of the Stipulation, the collection of the FRQ Deferred Account (dollars) will be resolved via a forward-looking usage surcharge over the period December 1, 2018 through November 30, 2019 versus the historical single invoice method in December 2018; under Section 1.4(E), any customer receiving service pursuant to a negotiated rate agreement currently subject to fuel requirements will be subject to the surcharge or credit mechanism Per Section 1.8 of the Stipulation, continued use of fuel retention percentage calculation and adjustment under the 2014 FRQ Settlement in regards to Beverly and Non-Beverly receipts 4

5 $ / Dth FRQ Surcharge Components Non Beverly Receipts $0.160 $0.140 $0.120 $0.100 $0.080 $0.060 $0.040 $0.020 $- $(0.020) $(0.040) $0.145 $0.094 $0.095 $0.074 $0.074 $0.074 $0.074 $0.070 $0.049 $0.020 $0.021 $(0.026) System Ramapo AIM Atlantic Bridge Cashout Fuel Under/(Over) Collection Total Surcharge 5

6 August-16 September-16 October-16 November-16 December-16 January-17 February-17 March-17 April-17 May-17 June-17 July-17 August-17 September-17 October-17 November-17 December-17 January-18 February-18 March-18 April-18 May-18 June-18 July-18 Dekatherms (+Due Shipper, -Due Pipe) FRQ Deferred Account Cashout AGT OFO Usage Comparison Algonquin Monthly Cashout Volumes vs. Algonquin City Gate Cashout Prices A B B/A 2018 Period Days in Period OFO % of days 2,500,000 2,000,000 $16.00 $14.00 $12.00 Dec Apr % C D D/C 1,500,000 1,000,000 $10.00 $8.00 $ Period Days in Period OFO % of days 500,000 $4.00 $2.00 Dec Apr % B - D Change In Days (B-D)/D % Change Inc/(Dec) 0 (500,000) $0.00 ($2.00) ($4.00) 42 70% Cashout Monthly Volume Cashout Monthly Average Price 6

7 FRQ Deferred Account Fuel Under/Over Collection Increased utilization of entire system throughout period results in higher compression utilization and fuel usage Very high level of contract utilization: Ramapo: 112% of MDQ AIM: 100% of MDQ Atlantic Bridge: 127% of MDQ Slight decrease of NJ/NY Project Lease volumes: 87% of MDQ Fuel over/under collection is calculated for each rate schedule Results in separate FRQ surcharge between System, Ramapo, AIM and Atlantic Bridge 7

8 FRQ Deferred Account Calculation Total Ramapo AIM Atlantic Bridge System Total Throughput Ramapo Throughput AIM Throughput AB Throughput System Throughput 760,542, ,157, ,207,428 13,909, ,267,965 Total % Ramapo % AIM % AB % System % 100% % % % % Customer Cash Out Amount Total Net Cashout * Prorata share of Total Throughput $55,566, $10,313, $9,074, $1,016, $35,162, Customer Carrying Charges Total Carrying Charge * Prorata share of Total Throughput $870, $161, $142, $15, $551, Net Fuel Shared (see next slide) ($5,958,283.93) $2,744, $2,548, $973, ($12,224,506.76) FRQ Deferred Account Balance: $50,479, $13,219, $11,765, $2,005, $23,489,

9 FRQ Deferred Account Calculation - Fuel Total Ramapo Lease AIM Atlantic Bridge System Net Fuel Consumed Share (dth) (see next slide) 7,408,163 1,318,058 3,323, ,456 2,312,182 LAUF Share (dth) (see next slide) 807, , ,390 99,130 11, ,098 Fuel Consumed and LAUF Share (dth) (see next slide) 8,215,539 1,430, ,390 3,422, ,557 2,696,280 Fuel Reimbursement (dth) (9,391,415) (1,225,280) (3,195,898) (372,233) (4,598,004) Net Fuel (dth) (Over)/Under Collection (1,175,876) 205, ,699 93,324 (1,701,333) Net Fuel ($) (Over)/Under Collection ($5,958,283.93) $2,744, $2,548, $973, ($12,224,506.76) 9

10 Projected Fuel Rate Percentage Calculation Ramapo Lease AIM Atlantic Bridge System NON-BEVERLY RECEIPTS Winter Fuel 683,321 67,889 1,865, ,470 1,142,682 Non-Winter Fuel 741, ,501 1,551, ,640 1,534,639 Total Fuel 1,424, ,390 3,417, ,110 2,677,321 Winter Throughput 44,063,278 85,064,117 42,917,605 5,346, ,516,804 Non-Winter Throughput 96,470, ,020,769 81,013,320 8,501, ,485,621 Total Throughput 140,533, ,084, ,930,925 13,847, ,002,425 Winter Fuel Rate 1.53% 0.08% 4.17% 3.84% 0.64% Non-Winter Fuel Rate 0.76% 0.08% 1.88% 2.86% 0.51% BEVERLY RECEIPTS/NON-HUBLINE DELIVERIES Winter Fuel 5,221 3, ,560 Non-Winter Fuel 553 1, ,399 Total Fuel 5,774 5,255 1,447 18,959 Winter Throughput 427, ,985 23,627 3,483,929 Non-Winter Throughput 197, ,518 37, ,611 Total Throughput 624, ,503 61,193 4,265,540 Winter Fuel Rate 1.21% 3.06% 2.74% 0.44% Non-Winter Fuel Rate 0.28% 1.05% 2.04% 0.43% 10

11 FRQ Surcharge Rate Calculation Line No. Ramapo AIM Atlantic Bridge System 1 Total Throughput (Line 2 + Line 3) 141,157, ,207,428 13,909, ,267,965 2 Projected Non Beverly Usage Determinants 140,533, ,930,925 13,847, ,002,425 3 Projected Beverly to Non-Hubline Usage Determinants 624, ,503 61,193 4,265,540 4 Projected Beverly to Non-Hubline Usage Determinants * 70% (Line 3 * 70%) 436, ,552 42,835 2,985,878 5 Total Allocated Projected Usage Determinants (Line 2 + Line 4) 140,970, ,124,477 13,890, ,988,303 6 FRQ Deferred Account Balance: $13,219,362 $11,765,649 $2,005,382 $23,489,079 7 Projected Non Beverly Deferred Account Balance ((Line 2/Line 5) * Line 6) $13,178,385 $11,747,303 $1,999,198 $23,342,960 8 Add February & March 2018 Adj $650 $2,569 $133 $7,098 9 Total Non Beverly Account Balance (Line 7 + Line 8) $13,179,035 $11,749,872 $1,999,331 $23,350, Projected Beverly to Non-Hubline Deferred Account Balance ((Line 4/Line 5) * Line 6) $40,977 $18,347 $6,184 $146, Less February & March 2018 Adj ($650) ($2,569) ($133) ($7,098) 12 Total Beverly to Non-Hubline Account Balance (Line 10 + Line 11) $40,327 $15,777 $6,051 $139, Non Beverly Cashout & Carrying Charge Portion of the Surcharge Rate dth/d $ $ $ $ Non Beverly Fuel Portion of the Surcharge Rate dth/d $ $ $ ($0.0256) 15 Total Non Beverly Usage Surcharge Rate dth/d (Line 9/Line 2) $ $ $ $ Beverly Usage Surcharge Rate dth/d (Line 12/Line 3) $ $ $ $

12 Correction to Deferred Account Balance Calculation from RP In the AGT 2017 FRQ Filing, under Docket RP , the portion of the Deferred Account Balance allocated to volume sourced at Beverly was based on the throughput reduced by 30% from Aug 1, 2016 to Jan 31, 2017, which is the settlement end date, versus the entire period. The information in schedules Appendix F, Schedule A, pages 1 to 3 denotes the application of the 30% reduction of Beverly Receipts to Non-Hubline Deliveries, against the account balance, for the entire filing period. This, in turn, results in a credit of that portion of the surcharge. To ensure that customers are only receiving a credit and no additional charges in connection with this correction, Algonquin has revised this allocation to reflect a zero amount for any customer that would have received an additional charge as a result of the corrected allocation. The total amount credited back is $4, which will be credited separately on the December 2018 invoice to all customers impacted. 12

13 Implementation of the Beverly Receipt Portion of the Deferred Account Balance The AGT FRQ 2018 filing illustrates the reconciliation of the over- and under-collections resulting from the fuel rate percentages that were in effect from February 1, 2018 through March 31, 2018 compared to those percentages calculated pursuant to the settlement ( Settlement Extension Agreement ) approved by the Commission on February 20, The information in schedules Appendix E, Schedule A, pages 1 to 4 denotes the fuel comparison. The application of these amounts are further explained on lines 8 and 11 of the FRQ Surcharge Rate Calculation slide. 13

14 Q&A