Customer Dialogue Summaries

TransGas shared that it continues to work through the proposed Alberta Supply Strategy with the Albert Supply Subcommittee.  Once an agreement is reached, TransGas will present the strategy to Customer Dialogue.

TransGas provided an update on the Gas Quality Subcommittee, which remains paused at this time.  TransGas is completing its review and analysis of the consultant’s report and expects to reconvene this subcommittee for Summer 2022. 

TransGas asked Customer Dialogue members to give some thought to the structure, processes and purpose of Customer Dialogue.  With the recent 25th anniversary of Customer Dialogue, TransGas intends to hold discussions over the summer of 2022 regarding the current and future state of Dialogue.

TransGas presented a financial update for the 2021-22 fiscal year to the end of December 2021, as well as forecast for 2021-22 year end. 

TransGas presented an update on feedback to the account balancing process that was implemented on November 1, 2021, as well as improvements that have been implemented since.  TransGas shared that further improvements are currently being looked into.

TransGas presented an update on NGTL, Foothills and Mainline, including a reminder that a NGTL shed deadline is coming up with shed notice as of November 2022.  

TransGas presented an overview of its cyber security efforts, including its approach to prevention, detection, response and recovery.

TransGas presented a review of Summer 2021 operations and a look ahead to Winter 2021-22 plans. This included an overview of NIT to TEP outages, a summary of the supply/demand balance for the province and a review of key projects and major facilities that support strong system operations.

TransGas presented a financial update for the 2021-22 fiscal year to date. TransGas also presented a revenue forecast for 2022-23.

TransGas presented updated information on its investment model and rate. TransGas proposed increasing the current rate of investment from $22.50/GJ/day/year of term to $31.40/GJ/day/year of term.  

TransGas presented an update on the CER-regulated project at Pierceland, as well as the NGTL 2021 expansion, the extension of the East Gate transfer project and NGTL storage access. In addition, TransGas presented updates on Mainline and Foothills, which included the potential for a Foothills rate change in 2022.

TransGas presented an overview of how shipper balances are monitored and managed. TransGas advised that updates to the balance report and enforcement mechanisms have been made, with additional customer communication to follow on these mechanisms, which will be enforced beginning November 1, 2021.

TransGas provided clarifying language for the TransGas website regarding: Export/Mainline and McNeill deadlines; service groups; deadline to submit nominations; and interconnecting pipeline nominations.

TransGas shared that a proposal has been provided to the Alberta Supply Subcommittee for review. Once an agreement is reached, TransGas will present the strategy to Customer Dialogue.

TransGas provided an update on the Gas Quality Subcommittee, which remains paused with TransGas reviews the results of a consultant report. The subcommittee will be reconvened once the findings are ready to be presented to Customer Dialogue.
 

TransGas presented a recap of the Alberta Supply Subcommittee efforts to date, highlighting that the educational component has been completed and that the focus will now shift to developing a formal strategy for Alberta supply. TransGas explained that the next steps will include sharing a formal proposal for the strategy with the subcommittee, which will be open for feedback. Once the strategy is finalized and passed by the subcommittee, it will be shared in full with Customer Dialogue.

TransGas presented an overview of how shipper balances are monitored and managed. TransGas advised that updates to the balance report and enforcement mechanisms have been made, with additional customer communication to follow on these mechanisms, which will be enforced beginning November 1, 2021.

TransGas presented information regarding the current investment policy and highlighted potential changes to the model which are currently under consideration.

TransGas presented a financial update for the 2020-21 fiscal year. TransGas also presented a rate rebalancing update, which will be provided every June going forward.  

TransGas presented an update on the CER-regulated project at Pierceland, as well as updates for the Foothill and Mainline pipelines, and the NGTL system. TransGas shared that the NTT shed deadline notice amendment to 16 months has been voted on and officially approved.

TransGas presented amendments to its Force Majeure clause in the Tariff. TransGas explained that the clause was recently reviewed as part of ongoing Tariff review efforts, which are focused on ensuring clauses: are up to date and relevant; accurately reflect today’s business and system; and are clear and concise. TransGas highlighted that the amendments are intended to: improve alignment with TC Energy; address the increasing potential for external impacts to business (e.g.: regulatory intensification, weather and third-party events); strengthen and clarify the requirements for declaring it; and make general updates and improvements to the clause.

TransGas presented the results from the recent Customer Satisfaction Survey, which included both a key customer survey and a survey specific to customers who had been through the CFR process. TransGas highlighted that, overall, satisfaction levels remain consistent with last year. TransGas shared that it is already undertaking projects to make improvements to the areas of customer communication and measurement.  

TransGas presented a brief update on NGTL 2021 and how NGTL will now be providing new shaped allocation instead of the baseline monthly allocation. TransGas also presented on NGTL information tools available to customers at https://my.tccustomerexpress.com (Daily Operating Plan). 

TransGas presented on a possible temporary amendment to the Tariff to decrease the NTT shed notice from the current 26 months until 2026 to better match the Mainline move to a 12 month renewal notice. TransGas explained that next steps will include sending out a proposal for the changes to the NTT shed notice length. This will be followed up by the opportunity for shippers to provide comments and feedback to TransGas, followed by a vote. 

TransGas presented a year-to-date update on its financial performance as of December 2020. TransGas also presented a forecast of corporate financial performance and income variance at year-end, March 31, 2021. 

TransGas presented an update on CER regulated projects, as well as addressed recent issues related to Mainline and NGTL contracting.  

TransGas presented a short recap on what has happened since the committee was 'paused' in June 2020. Internal discussions and analysis have taken place, and an external contractor (EtaPartners) began work at the end of December 2020. TransGas advised that the final report is expected at the end of February. Once the report is received, TransGas will assess the information, discuss internally and call a Gas Quality Subcommittee meeting to review.  

TransGas shared that the current state of the subcommittee is still an educational focus regarding current policies and system operations in order to provide context as to how we use Alberta supply. TransGas advised that there are still a few more topics to address before moving on to specific policy items with the group. Ultimately, the focus is on building and delivering a service that fits our customer needs. TransGas said updates will continue to be provided at standing Customer Dialogue meetings. 

TransGas advised that going forward, we will move to give highlights of the traditional business update, with all slides being available at the end of the slide deck, as well as monthly website updates.  

TransGas presented an overview of historical and year-to-date NIT to TEP, receipt and delivery volumes.

TransGas presented on its financial position for the period of April 1, 2020 to July 31, 2020. TransGas also presented a revenue forecast for 2021.

TransGas presented an update on the plans for winter 2021 operations. This included a summary of the supply at the border points as well as demand and storage for different regions of Saskatchewan.

TransGas presented an overview of regulatory topics concerning Alberta supply, including an update on the current status of pipeline projects and their potential in-service dates.

TransGas presented an overview of regulatory topics concerning Alberta supply. Examples include Pierceland West Supply and NGTL 2021 Expansion.

TransGas presented the methodology and results of the 2019-20 customer satisfaction survey.

TransGas presented an overview of historical and year-to-date NIT to TEP, receipt and delivery volumes.

TransGas presented an overview of its financial information.

TransGas provided an overview of the market changes associated with the COVID-19 pandemic, TransGas' response to the pandemic, and insight into future changes.

TransGas presented an overview of access to supply in western Canada with a focus on the TransGas system. This included a summary of supply changes in Alberta and a list of TransGas capital projects that are planned to facilitate the transport of supply from the Alberta border into Saskatchewan.  

TransGas presented on the topic of Distribution Tolls (D-tolls). This included an overview of how SaskEnergy quantifies D-toll costs, charges TransGas, and how TransGas incorporates them into rates.

TransGas presented an update on Elevated Pressure Service (EPS). This included an overview of how EPS is addressed in the Tariff and administered by TransGas.  

TransGas presented updates on the Alberta Supply, Gas Quality and Rate Design subcommittees.

TransGas provided an update on the topic of Abandonment. TransGas also provided an update on the recent fuel gas nomination vote that was held in May 2020.      

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

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).

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.

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.

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.

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.

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.

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.

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

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

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

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.

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.

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.

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 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.

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

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.

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

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.

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.

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

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.

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

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.

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.

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.

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.

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.

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.

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.

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

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.

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.

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.

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.

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.

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.

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.

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

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.

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.

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.

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.

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.

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. 

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.

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.

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.

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. 

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.

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.

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.

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.

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.

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.

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.

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. 

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.

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

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.

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.

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.

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.

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.

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.