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k!Ork G Cnfftff af December 5, 2018 FORTIS BC" ~ Agenda - PowerPoint PPT Presentation

Dec 10, 2022 •488 likes •764 views

FEI RS 46 E XPEDITED T EMPORARY T ARIFF C HANGES E XHIBIT B-4 FEI Rate Schedule 46 FE Exp xpedited Temporary ry Tarif iff Changes to Curtailm lment t Prio iority k!Ork G Cnfftff af December 5, 2018 FORTIS BC" ~ Agenda Context

  1. FEI RS 46 – E XPEDITED T EMPORARY T ARIFF C HANGES E XHIBIT B-4 FEI Rate Schedule 46 FE Exp xpedited Temporary ry Tarif iff Changes to Curtailm lment t Prio iority k!Ork G Cnfftff af December 5, 2018 FORTIS BC"

  2. ~ Agenda Context and Overview of Gas Supply Situation FEI’s Efforts to Date Review Proposed Tariff Changes Sought Issues Raised Conclusion FORTIS BC ™ - 2 -

  3. ~ Part rt 1: C ONTEXT AND C URRENT S ITUATION FORTIS BC ™ - 3 -

  4. ~ Precip ipitatin ing Events • October 9, 2018: Enbridge 36” pipeline rupture incident • Enbridge declaration of Force Majeure • Current NEB Order limiting operating pressure on both the repaired 36” pipeline and the adjacent 30” pipeline (Westcoast T-South system) to maximum 85 percent operating pressure • FEI may not be able to meet its obligations to serve customers over Winter 2018/2019 • October 9 and 10 – unprecedented emergency situation • Ongoing critical gas supply constraint • FEI declared Force Majeure to large firm customers including RS 46 customers FORTIS BC ™ - 4 -

  5. ~ Physical l Su Supply ly/Demand Con ondit itions in in th the I-5 5 Cor orrid idor • Enbridge T-south line is essential A. Third party storage to customers in British Columbia, Trading hubs Alliance Foothills BC Washington and Oregon. Foothills Saskatchewan FortisBC Gas Transmission Northwest (GTN)  Limited gas deliverability NOVA Gas Transmission Ltd (NGTL) Northwest Pipeline available to meet winter Pacific Northern Gas TransCanada Canadian Mainline (TCPL) demand Westcoast Energy  Base gas supply (before incident) - T-South 1.6 Bcf/day (1.8 PJ/Day) and NWP Gorge 0.550 Bcf/day (.615 PJ/day)  On-call gas supply options (JPS/Mist/LNG) help with colder than normal weather  On-call assets cannot replace Base pipeline capacity for the winter, therefore region at risk for curtailing customers FORTISBC ™ - 5 -

  6. ~ Crit itic ical Factors and Uncertainties • Westcoast T-South capacity on a given day • Colder weather • Time of year • Status of on-call resources (JPS/MIST/LNG) • Customer demand / gas use FORTIS BC ™ - 6 -

  7. ~ 2018/19 Lower Main inland Win inter Supply LM L Winter Supply & De 1 mand (100% TSouth) 1,200,000 LNG 1,000,000 JP iii' 800 , 000 JP}" Mist & L ING 0 - Mist L.. di a. 600,000 TSouth Supply VI -, (.!;I -- LML Design Load 400,000 -- LML Normal Load 200,000 1.3 Bd (80%) } 0.9 Bcf (56%) -- 1. 3 Bcf (80%} -- 0. 9 Bcf (56%} Winter Days 2018/19 • TSouth capacity: 1.6 Bcf • FEI contracted 30% of the TSouth capacity ( 0.5 Bcf ) FORTIS BC ™ - 7 -

  8. ~ 20 2018/19 Lo Lower Mainland Win inter Su Supply ly LML Winter Supply & Demand (80% TSouth) 1,200,000 1,000,000 LNG 800,000 JP ... - Mist QJ 600,000 a. VI --, - Sumas Supply (.!) 400,000 TSouth Supply -- LML Des ign Lo ad 80% TSouth 1.3 Bcf (1.5 PJ) 200,000 FEI 30% -- LML Normal Lo ad • 80% TSouth capacity available 2018/19 winter • Additional Sumas purchases make up loss of TSouth capacity FORTIS BC ™ - 8 -

  9. ~ ~ ~ " ~ ~ ~ Westcoast T-South Proje jected Deli livery ry Capacity December 2018 – Huntingdon Delivery Area Capacity 6J l .iS OO ,lil lXJ u s usa lJ H .75 9, 7 5, 1 1.5 U 5 1.5 9! .7~! - - --, -· --· -- - -- -· - - - -- -- - --, , r- --- -- -- --- - - ... ·- - - --, 1 -- --- - -· --· · -- · - - - · I I I I I• I II I I I ,, - I I• I I i I I I• I II I I I I u a ,a u I• I I I I 1 1 -- I ! Oll ,11 00 I I ,, I• I I · I I I 1 , I I • I I 1 1 I t -- -1 ln I I II I : IL --] I i f----1 I 1 00,. 11 00 1 9. 150 . , I i I • I ·i 1 ,0 00 ,0 00 i- n ,.1 -------- H 1U ntingd on Del 1 ,very Area capacirties are for info rmat ion I p ur poses on ly. The Statim1 4B S01Uth constraint group is r-- I expe ct ed to be u sed for a 1U tho rizations and sub j ect to N EB 849,1 ~5 approva l of eng i rni ee r in g ass es sments . - . - - - - - I - c: · ,'!:! C: C: tu C: 1:1:1 a · :::i ::I :::i C c::: a: a: a: C 200 ,000 N · :::i 0 0 N 0 0 ...J ...J 0 al 0 0 Cll fl. - - al i-,;. i-,;. !.O '° - - !.O - - I I I I Source: Westcoast Curtailment Notice #51146 Revision #0 https://noms.wei-pipeline.com/notices/ci_notice.show?id=51146 FORTISBC ™ - 9 -

  10. ~ Westcoast T-South Proje jected Deli livery ry Capacity January 2019 – Huntingdon Delivery Area Capacity (iJ 1-,Soo,ooo ~l - _ _ - _ - _ -_ - _ - -,-u-,- ~ ----------------1 . -s,-s- . !li-,- s -- 1 .-11,-s- . s:-,-s---- i,ii'i , i7 5 ---------- , ::!S , 1!1'75 5 67 5,37S 1. :, S.1!1'75 I -- ---r----- ,---1 ---.---------- 'i ----- I ,---1 I-! I------{ • I : I U24 , ID I I I I I I I l,40D , IXJD I I I • I r - --1 I • I I I I " I • I U5!1.H • I I (_j 1, ioo.000 " " • I H unt i ngdo n Delivery Area capaciti es are for infor ma ti'on pu rposes onl y .. The Sta ti on 4B Sout h c onstra i nt gro up is expecte d to be used for au tho ri zat ions and subj ect to IN EB approval of engi nee ni nR assessm ents. 0 - --------------+---+---+---+---+---+---+---+---+---+---+---+---+---+---+--+--+---1---1~--~------- - Source: Westcoast Curtailment Notice #51146 Revision #0 https://noms.wei-pipeline.com/notices/ci_notice.show?id=51146 FORTISBC ™ - 10 -

  11. ~ Part rt 2: FEI’ S E FFORTS TO D ATE FORTIS BC ™ - 11 -

  12. ~ Supply Activ ivit ities 1. Obtained BCUC approval for amendment to Annual Contracting Plan (ACP)  L-28-18 Amendment to ACP (120 TJ/day) – Report on activities due November 15  L-30-18 Additional Huntingdon Supply for Transport Service (120 TJ/day) 2. Increased levels of LNG in storage 3. Secured LNG from third parties 4. Secured CNG injection options FORTIS BC ™ - 12 -

  13. ~ Demand Activ ivities • FEI’s public communications have encouraged conservation from all customers • Many media used  New media – direct customer contact, twitter, emails, website, etc.  Traditional media - radio, newsprint, TV  Earned media – interviews, releases • Coordination with all levels of government • Limitations on service FORTIS BC ™ - 13 -

  14. ~ Lim imitations on Servic ice • Customers currently subject to limitations of service are:  RS 46 Spot LNG Service customers due to the suspension of Spot LNG Service; and  Transportation service customers (supply their own gas) – FEI has restricted the provision of Backstopping Gas and Balancing Gas FORTIS BC ™ - 14 -

  15. ~ Dir irect Communic ications wit ith Customers 1. Notices of Force Majeure sent 2. Ongoing conservation request 3. Ongoing communications regarding gas supply status FORTIS BC ™ - 15 -

  16. ~ Part rt 3: FEI’ S P ROPOSED A MENDMENTS TO R ATE S CHEDULE 46 FORTIS BC ™ - 16 -

  17. ~ Temporary Tarif iff Changes Proposed Section 5.2 – Curtailment of Dispensing Service • Curtailment Priority Sequence • Minimum Monthly Take or Pay Commitment Relief Section 5.4 – Title Transfer • LNG Facilities Owned and Operated by a Third Party FORTIS BC ™ - 17 -

  18. ~ Se Section 5.2 – Curt rtailment t of f Dis ispensing Se Serv rvice Existing Language Proposed Language • Pro-rata curtailment • Allows for collaboration inflexible on voluntary curtailment • Pro-rata amounts may be • Considers customers insufficient for any one ability to operate on customer to operate their alternative fuels business • Facilitates customer-by- • Creates more operational customer curtailment challenges for more • Contract Demand customers than may be adjustments for necessary alternative fuels used • Contract Demand adjustments for temporary LNG suppliers FORTIS BC ™ - 18 -

  19. ~ Section 5.4 .4 – Tit itle le Transfer Existing Proposed Language Language • Title transfer • To be consistent inconsistent with with third party an LNG facility LNG facilities being owned and under contract to operated by a FEI third party FORTIS BC ™ - 19 -

  20. ~ Ratio ionale le for Proposed Amendments • Retain curtailment principle that Spot LNG Service is curtailed first, followed by Short-Term LNG Service, and then Long-Term LNG Service • Introduce the ability for FEI to work with customers who can voluntarily agree to be curtailed (in whole or in part) • Introduce the ability for FEI to curtail customers that have alternate fuel or back-up systems before those who do not have that capability • Change curtailment priority for Short-Term and Long-Term LNG Service customers so customers with smaller volumes are curtailed first • Provide adjustment to Contract Demand for curtailed customers who use an alternative fuel • Consistency in tariff language for contracted LNG supply from third parties FORTIS BC ™ - 20 -

  21. ~ Part rt 4: I SSUES R AISED FORTIS BC ™ - 21 -

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