Natural Gas Aggregation and Marketing Programs

Natural Gas Aggregation and
Marketing Programs
Brooke E. Leslie, Senior Counsel, NiSource Inc.
January 14, 2014
Taking Control of Your Energy Supply
• Several options are available when it comes to purchasing your
natural gas supply.
• Depending on the volume used and customer class, customers
may be eligible for:
Traditional sales service,
CHOICE service,
Transportation service, or
Aggregation service.
Natural Gas Supply Options
Traditional Sales Service
• Types of Traditional Sales Service
– Small General Service (SGS) < 300 Mcf/yr.
– General Service (GS) > 300 Mcf between September1 and August 31
– Large General Services (LGS) 18,000 Mcf during one of the two most recent
Annual Periods (Nov. through Oct. billing cycles)
• Who supplies the gas?
– CHOICE supplier
Traditional Sales Service
• Standard Choice Offer
Columbia will no longer purchase the natural gas for its sales customers
Auction process in place for those who have not chosen to participate in a
CHOICE program
Supplier will be assigned to the customer and price set by a competitive auction
– Customer chooses a natural gas supplier
– Customer enters into an agreement with the supplier or marketer
– Will still be billed by Columbia for the transportation of the natural gas and costs
associated with the service
CHOICE Program Overview
• History
– Began in 1997 in the Toledo area
– Officially expanded to the entire state in 1999
– Evolution of the program a result of a collaborative effort
• Eligibility
– Customers using less than 2,000 Mcf/year
– Can not be in arrears
– Can not be a PIPP customer
• Marketers
– Must be certified by the Commission
– Must provide firm service
– Must abide by Columbia’s Code of Conduct
Natural Gas Supply Options
Transportation Service
• Overview
− a Transportation Service Customer is a non-residential class customer account
provided gas service under Columbia’s Small General Transportation Service,
General Transportation Service, or Large General Transportation Service Rate
− Customer is responsible for procuring its own natural gas supply for delivery
under Columbia’s tariff.
− Similar to CHOICE, but available to commercial and industrial customers.
Transportation Service
• Service Agreements shall set forth:
− the points of receipt at which Columbia will accept delivery of
Customer’s gas;
− the points at which Columbia will redeliver gas to Customer’s facilities;
− the customer’s Maximum Daily Quantity and Annual Transportation
− daily meter reading service election; and
− the specific services and levels of such services for which customer
has contracted.
• Other Requirements as Set forth in Columbia’s Tariff
− Conditions of Service
− Daily Measuring Device
− Internet-Based Website
− Creditworthiness Evaluation
Natural Gas Supply Options
Aggregation Service
• What is Aggregation Service?
– A service for Agents that have been engaged by Customers receiving
Transportation Service from Columbia to be responsible for the delivery of
natural gas to the Company’s city gates on behalf of Customers
• What is an Aggregation Pool?
– The customer group that an Agent establishes for the purpose of procuring and
delivering natural gas to Columbia’s city gates.
– Customers in the Aggregation pool must be located within the same Pipeline
Scheduling Point.
• Why Aggregate?
– May increase purchasing power and procure a better deal for the Customer than
if purchasing natural gas on its own.
Aggregation Service
• Commercial Industrial Customers
Large Commercial and Industrial customers (GTS) have been able to buy as a
group, whether as a consortium or aggregation pool, since the late 1980’s.
Bound by Columbia tariffs.
Agent must execute an Aggregation Service Agreement.
• Small Commercial and Residential
Governmental Aggregation has been available since 2001.
Opt-in v. Opt-out Governmental Aggregation
Natural Gas Supply Options

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