Customer Dialogue Summaries

TransGas compiles brief summaries of Customer Dialogue meetings, which include any discussion results. Please contact your Key Account Manager if you have any questions about the meetings or the Customer Dialogue process.

Meeting No. 125 – Regina, SK – February 24, 2020
Export Process

TransGas presented an updated on the export offering process. Shippers who have questions about this process should discuss them with their Key Account Manager.

Regulatory Update

TransGas presented a regulatory update that included an overview of key activities undertaken on third-party gas lines. The overview summarized several applications and filings that were underway with the Canada Energy Regulator (CER).

Alberta Supply

TransGas presented an overview of Alberta supply and what was currently contracted with NOVA Gas Transmission Ltd. (NGTL). TransGas will continue to meet contractual obligations when there is an increase in demand.

Sub-committee Updates

TransGas presented an update on the 2019 rate design process, and an update on rate design. TransGas provided a proposal to shippers after presenting to them in January. Shippers will prepare a counter proposal for TransGas.

TransGas also presented an update on the 2019 gas quality sub-committee, and an update on gas quality. An overview of Gas Quality and Appliance and Wobbe studies was presented and discussed. TransGas will provide information from the sub-committee meeting to customers at Customer Dialogue.

Abandonment

TransGas presented an update on facility abandonment. TransGas has been evaluating abandonment from the Canada Energy Regulator (CER) perspective in terms of whether there are extra costs or responsibilities after a gas line has been abandoned. TransGas will continue to explore the topic and keep shippers informed as more informational is available.

Meeting No. 124 – Regina, SK – November 26, 2019
Business Update

TransGas presented an overview of key business and industry statistics. Highlights included:

  • Wells: As of July 31, 2019, there were no new gas wells drilled in Saskatchewan. There were 1,061 oil wells drilled.
  • Receipts: As of September 30, 2019, daily average receipts were 297 terajoules per day (TJ/d) by year from Saskatchewan, and 712 TJ/d from Alberta.
  • Storage: As of October 31, 2019, storage was 96 per cent full.
Fuel Gas Nominations – NTT

TransGas presented an update on NIT to TEP (NTT) fuel gas nominations. TransGas explained the process for nominating fuel gas within the NTT contract amount is not clearly defined. Not all shippers nominate fuel gas in addition to their NTT contract amount. As a result, when NTT is 100 per cent utilized, TransGas can be short transport for the fuel gas amount (i.e. NOVA Gas Transmission Ltd (NGTL), Mainline or Foothills) because TransGas’ third-party transportation contracts match customer’s firm demand.

Sub-committee Updates

TransGas presented an update on the 2019 rate design process. The update included a reminder of the rate design sub-committee that was appointed in April 2019, a summary of the topics reviewed to date, and the next steps for rate design. 
 
TransGas also presented an update on the 2019 gas quality sub-committee. Key topics included: background and foundational knowledge; considerations for changes to gas specifications; monitoring equipment, enforcement and shut-ins; and services.

Financial Update

TransGas presented its financial position for April 1, 2019 to October 31, 2019.

Customer Service Process Update

TransGas presented an update on several internal processes. The update included a discussion on credit risk management, service sheets, and shipper balancing.

 

Meeting No. 123 – Regina, SK – September 25, 2019
2020 Financial Update and Forecast

TransGas presented its financial position for April 1, 2019 to July 31, 2019. TransGas also presented a revenue forecast for 2020.

Gas Quality

TransGas presented an update on gas quality for the TransGas system. The update included a reminder about the work to date on gas quality (for example: the 2014 external consultant’s report; the Wobbe Index added to the TransGas tariff in 2016, and the appliance study concluded in 2018). TransGas is proposing to create a sub-committee to move this issue forward.

Rate Design

TransGas presented an update on the 2019 rate design process. The update included; a reminder of the rate design sub-committee appointed in April 2019, a summary of the topics that have been reviewed to-date, and next steps for rate design.

Credit Risk Management

TransGas presented an overview of its approach to credit risk management. The summary included an overview of rating agencies, the approach to audited financial statements, and credit support. TransGas also provided a timeline for its approach to credit risk management.

2020 Winter Operations Update

TransGas presented an update on plans for winter 2020 operations. The update included:

  • A summary of supply coming into border points
  • Saskatchewan industrial demand by regions
  • A summary of the supply-demand balance
  • Storage breakdown by operating region
  • Days-to-fill management process
  • Facility enhancements
  • 2020 high-use pipelines on the TransGas system
TransGas Tariff

TransGas presented an overview of its tariff review process that is currently underway. The overview provided descriptions of the rationale behind the view, the review process, and how Customer Dialogue will be involved. Examples of new topics included gas quality, investment policy, and default payment periods.

Alberta Supply

TransGas presented a regulatory overview on Alberta supply. Topics included Pierceland West Supply and NOVA Gas Transmission Ltd. (NGTL) 2021 Expansion.

 

Meeting No. 122 – Regina, SK – June 6, 2019 
Access to Supply

TransGas presented an overview of supply access in Western Canada that focused on the TransGas system. The overview provided a summary of supply changes in Alberta and a list of planned TransGas capital projects to facilitate transport of supply from the Alberta border into Saskatchewan.

Financial Update

TransGas presented an overview of its financial results for 2018-19. The overview included a group discussion on income variances.

Customer Dialogue Decision Process

TransGas presented an overview of the 2019-20 Customer Dialogue decision process. The overview included a discussion on formal issue adoption, voting and in-camera sessions.

Rate Design

TransGas presented an update on the 2019 rate design process. The update included a description of the rate design sub-committee appointed in April 2019 and a summary of the Chymko cost of service report.

Guiding Principles

TransGas presented an update on guiding principles, including the results for the maximum differential (max-diff) vote held online using SurveyGizmo.

Tariff Review

TransGas presented an overview on its tariff review process that is currently underway. The summary included descriptions of the rationale behind the view, the review process, and how Customer Dialogue will be involved.

Tariff Items

TransGas presented an overview of items currently being considered for revisions in the tariff.

Customer Service Satisfaction

TransGas presented the findings from the customer satisfaction survey and encouraged customers to contact Tanya Lang with questions or comments about satisfaction with the TransGas Customer Services group.

 

Meeting No. 121 – Regina, SK – February 28, 2019
TransGas Outlook

TransGas presented an outlook for the company’s near future. The outlook included an overview of TransGas’ mission and the current state of the TransGas system. Ideas for guiding principles to be used when TransGas develops policy or service changes were presented, as well as a proposed list of policy items that will be considered in 2019-20. A discussion on these two items was facilitated with Customer Dialogue to seek feedback.

Customer Dialogue Engagement

TransGas presented an overview of suggestions and feedback that members provided to improve Customer Dialogue. Potential structural changes to Customer Dialogue were presented by TransGas and a discussion with members was held on how best to improve the Customer Dialogue experience.

Rate Design

TransGas presented an overview of the 2019-20 Customer Dialogue rate design process. The presentation included an overview of the proposed scope for the design process and the membership selection process, as well as the proposed rate design timeline for 2019-20.

Carbon Tax

TransGas provided an update on the Carbon Tax that takes effect April 1, 2019. The update included a summary of the Federal Carbon Tax, an overview of the implications for TransGas and customers, and a description of the implementation timelines.

System Operations Update

TransGas presented an update on the TransGas System for winter 2019. The update included an assessment of the current state of the system. A forecast of the system for summer 2019 was also provided.

Nomination Window

TransGas presented an overview on NIT to TEP (NTT) nomination deadlines. The presentation included an overview of the current NTT deadline process, an explanation of some of the challenges that the current process poses for TransGas, and recent feedback from the customers.

Facility Expansion

TransGas presented a summary of its system expansion plans for 2019-20 to 2024-25.

 

Meeting No. 120 – Regina, SK – November 29, 2018
2018-19 Winter Operations Plan

TransGas presented an overview of the 2018-19 winter operations plan. An item that was highlighted is the curtailment of interruptible (IT) service in the northern portion of the TransGas system early in November 2018. TransGas curtailed IT based on colder than anticipated weather. TransGas is proactively managing the system in advance of colder winter weather.

Proposed Curtailment Enforcement Procedure

TransGas presented an overview of the proposed curtailment enforcement procedure. Under the existing policy, some customers responded to the curtailment and others that did not. Under the proposed procedure, shippers that do not adhere to the interruptible (IT) curtailment will incur an overconsumption surcharge and potentially have their service shut-in.

Business Update

TransGas provided a current report on various business aspects, including: drilling, land sales, gas supply, projects, new connects and other perceived trends. Storage was approximately 93 per cent full on October 31, 2018. NIT to TEP (NTT) utilization continues to be high. Key statistical information from this update can be found on the TransGas website.

Alberta Receipt Service and Export Update

TransGas provided an update on Alberta Receipt and Export Services. There is high utilization of the NIT to TEP (NTT) service resulting in TransGas contracts now meeting physical capacity at TransGas border points. TransGas continues to monitor the potential for summer export and will inform shippers if available.

Financial Update

TransGas provided an update on its financial position for April 1, 2018 to October 31, 2018. Net income is anticipated to be on budget moving into the fourth quarter of the fiscal year.

Rates Update

TransGas provided an update on rates. TransGas has engaged an external consultant to review its cost of service model and rate structure. The consultant’s report is expected in January 2019.

Terms of Reference

TransGas provided an update on the terms of reference for Customer Dialogue. Once finalized, the terms of reference will be posted on the TransGas website.

Other Items

TransGas continues to develop internal processes for monitoring and enforcing shippers’ account balancing requirements.

 

Meeting No. 119 – Regina, SK – September 13, 2018
Business Update

TransGas provided a current report on various business aspects, including: drilling, land sales, gas supply, projects, new connects and other perceived trends. Storage was approximately 80 per cent full on September 13, 2018. NIT to TEP utilization continues to be high. Key statistical information from this update can be found in the Business Update section of the TransGas website.

NIT to TEP Contracting

TransGas presented a proposal on changing the terms for NTT contracts. The intent of the proposal is to ensure that TransGas is prudently accounting for capital spending by encouraging shippers to consider longer contracts that match TransGas’ longer terms with NOVA Gas Transmission Ltd. (NGTL). The renewal notice period would be 26 months.

Empress to TEP Receipt Service

TransGas provided a summary of the proposed Empress to TransGas Energy Pool (TEP) Receipt Service. The service will be standard tolls and will be offered through a binding open season. TransGas has the option to convert to NTT when available, however the service will not result in a queue for NTT.

Interruptible Delivery Rate

TransGas provided an overview of its proposal to create two interruptible (IT) delivery rates. The intent of the new rates is to minimize system risk related to winter IT. The proposed rates are a summer IT rate of $0.2173 per gigajoule (GJ) and a winter IT rate of 1.0194 per GJ.

Export Open Season Update

TransGas provided an update on the supply/demand balance for the 2018-19 gas year. NTT supply is anticipated to increase by 221 terajoules (TJ) per day from 2017-19 to 2018-19. Delivery contracts are anticipated to increase by 43 TJ during the same timeframe. TransGas offered an export open season for up to 70 TJ per day which closed on August 31, 2018, and was not subscribed to. TransGas will now offer it on a first-come, first-served basis.

TEP Account Balancing

TransGas provided an overview of TransGas Energy Pool (TEP) account balancing enforcement, including a summary of the proposed mechanisms for determining whether a shipper was out of balance. The overview included: a description of the proposed tariff changes; an explanation of the shippers daily and monthly accounts; and an overview of how the shipper’s balance range is determined in the current state versus the proposed alternative. 

Financial Update

TransGas provided an update on its financial position for April 1, 2018 to July 31, 2018. Net income is anticipated to be on budget moving into the third quarter of the fiscal year.

Supply, Demand and Revenue Forecast

TransGas presented a summary of its supply, demand and revenue forecast model. Receipt volume is projected to grow from 1044.2 average terajoules (TJ) per day in 2019-20 to 1050.9 in 2023-24. This is a factor of NTT receipt growth of 64.8 average TJ per day, and a decline in Saskatchewan production receipt of 58.1 average TJ per day. Delivery volume is projected to grow from 856.3 average TJ per day in 2019-20 to 984.8 average TJ per day. New demand growth is anticipated in the areas of enhanced oil recovery and power generation.

Demand Relief

TransGas presented its position on demand relief. TransGas proposed to maintain the status quo for demand relief, allowing time to study the issue and revisit it next year.

2018-19 Winter Operations Plan

TransGas presented an overview of the 2018 summer and 2018-19 winter operations plan. Storage was highlighted which is targeted to be 95 per cent full. There is the potential for NOVA Gas Transmission Ltd. (NGTL) curtailments throughout the fall since NGTL has planned work until November. 

Terms of Reference

TransGas proposed updating the terms of reference for Customer Dialogue. Customer Dialogue members shared feedback on a draft document which will be finalized at a future meeting.

QPTM Build Update

TransGas presented details of the Quorum Pipeline Transactions Management (QPTM) build. Process improvements are currently underway. TransGas will aim to survey customers in November 2018 to get their feedback on the recent build. Moving forward, TransGas will work with the vendor to resolve any issues that are raised, and to enhance the usability of QPTM.

Other Items

TransGas indicated that the rate review process is currently on hold pending SaskEnergy's rate application. The rate review process will resume in the winter of 2019.

 

Meeting No. 118 – Regina, SK – June 6, 2018
Business Update

TransGas provided a current report on various business aspects, including: drilling, land sales, gas supply, projects, new connects and other perceived trends. Supply on the system is a 65:30 split between Alberta versus Saskatchewan receipts. Storage was approximately 40 per cent full on June 6, 2018. NOVA Inventory Terminal (NIT) to TransGas Energy Pool (TEP) utilization continues to be high. Key statistical information from this update can be found on the Business Update section of the TransGas website.

NIT to TEP and NGTL Update

TransGas is fully contracted with NTT transport to meet customer requirements up to and including November 1, 2022. This transport includes increased amounts at various locations as gas is brought in from Alberta.

Empress Stand-Alone

TransGas provided a summary of the Empress stand-alone service offering. This new one-year service was introduced for the upcoming gas year. It is currently available on an interruptible (IT) basis. The service has no renewal rights and current Empress queue holders have first rights.

IT Services

TransGas provided a review of the various interruptible (IT) receipt services available during the winter of 2017-18. Based on 2017-18, there was a need for additional supply. TransGas wants to offer four standard IT receipt services: NOVA Inventory Terminal to TransGas Energy Pool (NTT), McNeil, Empress and Southern Saskatchewan Delivery Area (SSDA), in that order. The toll for these services will be consistent with standard IT costs. The intent is to have these services available during the upcoming winter.

Demand Relief

TransGas shared results from a survey of other pipelines. The survey found demand relief is not provided during outages similar to how it is applied in Saskatchewan. The value of demand relief and whether it should be maintained in the tariff in its current form was discussed. 

Export

TransGas has been approached by customers requesting export service at Empress for the upcoming gas year. TransGas will issue an open season in the later part of the summer for the upcoming 2018-19 gas year. Details of this open season will include an Empress point, must-flow requirements and a biddable toll. A one year (non-renewable) firm export service will also be included in the open season. TransGas will offer an E19.0 service with standard interruptible (IT) tolls if there is additional export available at Empress throughout the year.

NIT to TEP Alternate Delivery Point

TransGas discussed the possibility of a NTT alternative delivery point. TransGas presented requirements of keeping NTT as a bundled service.

TEP Account Balancing

TransGas outlined the limitations of enforcement of account balancing in the tariff. Currently, TransGas has clause 4.5 in the tariff. This clause reserves the right to restrict flows at receipts or deliveries to ensure compliance with shipper balancing obligations. TransGas introduced a new obligation enforcement clause for the tariff. The obligation allows TransGas to take corrective measures so customers keep their accounts within tolerance before shutting off supply.

Infrastructure Expansion Plan

TransGas presented its infrastructure expansion plan, including the development of Regina storage. Highlights include a planned investment of $430 million over five years for growth capital and $310 million planned for risk and operational capital in urban areas. TransGas outlined an investment of up to $1.3 billion over six years to manage growth, $0.8 billion of which would be the base case. TransGas explained the benefit of storage as an effective means of reducing transportation costs by $25 million per year.

Customer Satisfaction Survey

TransGas presented the findings of the customer satisfaction survey completed in February 2018. The response rate to the survey was 11.7 per cent. Findings were positive, with an overall satisfaction rate of 84.6 per cent. Individual responses included: key account manager satisfaction of 93 per cent; customer service administration satisfaction of 95 per cent; and customer facility request satisfaction of 93 per cent.

System Operations and Constraints

TransGas presented an overview of current system operations, including the challenges being faced due to 70 per cent of gas coming in from Alberta supply at TransCanada Pipeline Ltd. (TCPL), Foothills, Cold Lake and Unity. TransGas provided information on upcoming NOVA Gas Transmission Ltd. (NGTL) and Foothills outages including dates and volume impact.

Financial Update

TransGas provided an update on its financial position for 2018-19. Net income was $26 million. This result was driven by total revenue of $184.2 million (down $2 million from budget) and total expenses of $159.7 million (up $.4 million from budget). TransGas was able to lower salary and benefit expenses by $3.9 million from budget through efficiencies and restraint measures. Operational buy/sells and optimization resulted in an additional $1.5 million of revenue.

Gas Appliance Study Results

TransGas presented details of the completed Gas Interchangeability Study. The details included objectives, overview, participant selection, data collected, risk model, appliance type and appliance location. A key finding is the validation of the new Wobbe limits of 46.75 – 50.60 megajoules per cubic meter (MJ/M3) that was introduced into the tariff.