NATURAL GAS RATE INCREASE

Transcription

1 NATURAL GAS RATE INCREASE 1

2 2 WHAT WE DO? Natural Gas Utility

3 Natural Gas Operations 3

4 4 Operation and Maintenance (O&M) Leak Survey Cathodic Protection Measurement/Regulators Meter Station Maintenance Patrolling Valve Maintenance Odorant Program Operators Qualification Training Program SCADA Program Automated Meter Reading

5 5 O&M Performance Leak Survey Corrosion Protection

6 6 O&M Meter Station Maintenance SCADA

7 7 Capital Improvement Program Meet new customer growth Replace fleet and equipment Infrastructure capacity upgrades Regulator upgrades Line capacity upgrades Preventive maintenance SCADA Supervisory Control and Data Acquisition Capital repairs

8 8 Controlled Costs Operation and Maintenance Labor Equipment Tools Training Upgrades Capital Projects Community needs Growth demands = upgrades

9 9 Uncontrollable Costs Purchase and transportation of Natural Gas Weather Natural disasters Regulatory requirements Compliance with Environmental Protection Agency Department of Transportation Right-of-Way Homeland Security

10 10 CURRENT STATE Natural Gas Utility

11 11 To-Date No Natural Gas rate increase for the past 9 years Uncontrolled cost caused by economic and world events Expenses are projected to exceed revenues Aging natural gas system Additional regulatory requirements

12 Projected Spend $16,000,000 $15,000,000 $14,000,000 $13,000,000 $12,000,000 $11,000,000 $10,000,000 $9,000, Cash Inflow (Current Rate) $11,494,734 $15,043,478 $10,764,978 $10,996,066 $11,256,478 $11,446,793 $11,641,331 Cash Outflow $9,486,935 $13,345,954 $10,920,140 $12,975,089 $12,713,676 $13,545,273 $14,336,336 Cash Inflow (Proposed Rate) $10,871,317 $11,903,041 $12,713,676 $13,545,273 $14,336,336

13 13 Cost Conservation Implement a structured O&M Program to minimize outages and reduce high cost afterhour responses Conduct assessments to determine system deficiencies, weakness and areas that need renovations and replacement Promote Call Before You Dig Program

14 14 RATE INCREASE Natural Gas Utility

15 15 Process: Beginning to End Rate Study by Independent Consultant NTUA Management Recommendations Public Forum (comments) Official Public Hearing August 22 nd, 2014 Summation of all Public Comments will be reviewed by NTUA Management Board Final Decision NTUA Management Board

16 16 Customer Class Impact Residential Life Support/Senior Citizen Residential Commercial Institutional & Public Buildings

17 Residential & Life Support/Senior Citizen Residential 17 Current Oct 2014 Jan 2015 Jan 2016 Jan 2017 Jan 2018 Residential Service Charge ($/month) $3.50 $4.25 $5.00 $6.00 $7.00 $7.25 Usage Charge ($/therm) $ $ $ $ $ $ *PGA variable cost depending on changes in the market Life Support/Senior Citizen Residential Service Charge ($/month) $0.00 $0.75 $1.50 $2.00 $2.50 $2.75 Usage Charge ($/therm) $ $ $ $ $ $ *PGA variable cost depending on changes in the market The bill for a residential customer with usage of 40 therms per month or 480 therms per year is projected to increase between $2 to $3, 9%, per month or $24 to $36 per year.

18 18 Residential Customers Monthly Usage 40 Therms Residential Life Support/Senior Citizen Residential Invoice Monthly Impact Annual Impact % Annual Impact Invoice Monthly Impact Annual Impact % Annual Impact Today $ Today $ $ $ 2.42 $ % 2014 $ $ 2.31 $ % 2015 $ $ 2.92 $ % 2015 $ $ 2.47 $ % 2016 $ $ 2.57 $ % 2016 $ $ 2.20 $ % 2017 $ $ 3.18 $ % 2017 $ $ 2.50 $ % 2018 $ $ 2.75 $ % 2018 $ $ 2.53 $ %

19 19 Commercial Current Oct 2014 Jan 2015 Jan 2016 Jan 2017 Jan 2018 Commercial Service Charge ($/month) $25.00 $28.00 $31.00 $33.00 $35.00 $37.00 Usage Charge ($/therm) $ $ $ $ $ $ *PGA variable cost depending on changes in the market The bill for a commercial customer with a usage of 500 therms per month or 6,000 per year is projected to increase between $19 and $22, 5%, per month or $230 to $260 per year.

20 20 Institutional/Public Buildings Current Oct 2014 Jan 2015 Jan 2016 Jan 2017 Jan 2018 Institutional/Public Buildings Service Charge ($/month) $25.00 $28.00 $31.00 $33.00 $35.00 $37.00 Usage Charge ($/therm) $ $ $ $ $ $ *PGA variable cost depending on changes in the market The bill for a customer with a usage of 600 therms per month or 7,200 per year is projected to increase between $26 and $29, 6%, per month or $300 to $360 per year.

21 21 Commercial Natural Gas Customers Commercial 500 Therms Institutional/Public Buildings 600 Therms Invoice Monthly Impact Annual Impact % Annual Impact Invoice Monthly Impact Annual Impact % Annual Impact Today $ Today $ $ $ $ % 2014 $ $ $ % 2015 $ $ $ % 2015 $ $ $ % 2016 $ $ $ % 2016 $ $ $ % 2017 $ $ $ % 2017 $ $ $ % 2018 $ $ $ % 2018 $ $ $ %

22 22 Benefits of Natural Gas Alternative economic source of energy Clean and minimizes pollution Maintained & operated according to Department of Transportation standards Available and accessible 24 hours

23 23 Customer Programs Offered Pilot Light Relighting Program Senior Citizen & Life Support Rates New Customer Contribution Customer Budget Payment Plan Customer Installment Plan Navajo Nation Programs LIHEAP Utah Heat Assistance Southwest Indian Foundation Program

24 24 THANK YOU Natural Gas Utility Navajo Tribal Utility Authority