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					                           DOMINION EAST OHIO

                        CASE NO. 07-1224-GA-EXM

                APRIL 2010 THROUGH MARCH 2011
                  STANDARD SERVICE OFFER
                 AND STANDARD CHOICE OFFER

                AUCTION INFORMATION PACKAGE




                                        Disclaimer

The information presented in this information package, at the informa tion sessions for
potential and registered bidders, or in any other Dominion East Ohio communication
regarding the auction process is for the sole purpose of providing general information
about the auction process in order to help potential participants de termine whether they
will participate in the auction. The information is subject to change, and it is not intended
to be, and does not purport to constitute, a sufficient basis on which to determine whether
to participate or how to structure potential bids. While Dominion East Ohio has used
reasonable efforts to ensure the accuracy of the information presented herein, it does not
warrant the accuracy of that information for use by any party in assessing potential
participation or structuring potential bidding approaches or actual bids.


                                            -1-
              DOMINION EAST OHIO
       SCO AUCTION INFORMATION PACKAGE
              TABLE OF CONTENTS



                                           Page


Background                                  4

Objectives                                  4

Auctions to be Conducted                    5

Timing and Administration                   6

Standard Service Offer Auction              7

Standard Choice Offer Auction               7

Customers to be Included in SSO             8

Customers to be Included in SCO             9

Post Auction Commodity Service Options      9

Implications for Energy Choice Suppliers    10

Other Considerations                        11

Appendix A: Post SCO Auction
Commodity Service Options                   13




                                  -2-
                      DOMINION EAST OHIO
               SCO AUCTION INFORMATION PACKAGE
                     LIST OF ATTACHMENTS



                                                                Attachme nt

Stipulation and Recommendation - Case No. 07-1224-GA-EXM              1

Opinion and Order - Case No. 07-1224-GA-EXM                           2

Gas Supply Agreement                                                  3

General Terms and Conditions of Energy Choice Pooling Service         4

Customer Load Profile Data                                            5

Collateral Requirements Formula                                       6

Isolated Delivery Points                                              7

Asset Allocation Spreadsheet                                          8

DEO Interstate Pipeline Contracts to be Assigned                      9

Bidder Application Form                                             10

Bidder Registration Form                                            11

Capacity Supply Plan Templates                                      12

Frequently Asked Questions (FAQ)                                    13




                                         -3-
               STANDARD SERVICE OFFER (SSO) AND
             STANDARD CHOICE OFFER (SCO) AUCTIONS
               TO BE CONDUCTED IN FEBRUARY 2010

BACKGROUND

        On June 18, 2008, the Public Utilities Commission of Ohio (“Commission”)
approved a stipulation submitted by parties in Case No. 07-1224-GA-EXM that modified
certain aspects of Dominion East Ohio’s (“DEO” or “Company”) application to
implement Phase 2 of its plan to exit the regulated merchant function for natural gas
commodity service. The stipulation is included in these materials as Attachment 1, and
the Commission Opinion and Order is included as Attachment 2.

        The stipulation included a provision for the Company to conduct an auction to
acquire Standard Service Offer (“SSO”) supplies for the period from September 1, 2008,
through March 31, 2009. That auction was held on July 22, 2008. The resulting Retail
Price Adjustment of $2.33 was added to the monthly NYMEX settlement price to
determine the SSO commodity price over that period. In addition, the stipulation
provided for SSO and Standard Choice Offer (“SCO”) auctions to secure natural gas
supplies for two 12- month terms over the period from April 1, 2009, through March 31,
2011. The first SSO and SCO auction was held on February 10, 2009 and resulted in a
Retail Price Adjustment of $1.40 for the period from April 1, 2009, through March 31,
2010. DEO has tentatively selected February 9, 2010 as the date for the next SSO and
SCO auction, which will determine the SSO and SCO Retail Price Adjustment(s) for the
period from April 1, 2010, through March 31, 2011.


OBJECTIVES

        The objectives of Phase 2 are similar to those stated in the Phase 1 transition plan
submitted in Case No. 05-474-GA-ATA. Both phases are intended to: (1) foster a
competitive market in which customers can make informed choices among expanded
alternatives while ensuring reliable commodity service by suppliers; and (2) address,
without disrupting the competitive marketplace, the commodity service needs of those
customers that cannot or will not choose among those alternatives.

        Phase 2 is intended to facilitate the process of Choice-eligible customers
establishing a contractual relationship with a Competitive Retail Natural Gas Service
(“CRNGS”) provider prior to the time DEO may cease providing commodity ser vice to
Choice-eligible customers. To meet this objective, DEO will conduct an auction under
Commission supervision in which suppliers will compete for the right to serve the load of
specific customers. Customers that do not wish to receive service from their assigned
supplier will be free at any time to enroll with a different Energy Choice supplier or
participate in a governmental aggregation program.



                                            -4-
AUCTIONS TO BE CONDUCTED

        The stipulation approved by the Commission states that in February 2010, DEO
will conduct two auctions to secure natural gas supplies for the one-year term from April
1, 2010, to March 31, 2011:

        A wholesale SSO auction will be conducted for Percentage Income Payment Plan
         (“PIPP”), Choice- ineligible 1 and transitional2 customers’ natural gas
         requirements.

        A retail Standard Choice Offer (“SCO”) auction will be conducted for Choice-
         eligible SSO customers.

         The resulting arrangements are summarized in the table below:

                                      February 2010 Auctions
Custome r         Auction            Commodity                              Applicable
  Class            Type               Service                                Tariffs
   Choice-                       Standard Service Offer    General Sales Service (GSS)
                  Wholesale
  Inelig ible                           (SSO)              Large Volu me GSS

   Choice-                       Standard Choice Offer     Energy Choice Transportation Service (ECTS)
                    Retail
   Eligible                             (SCO)              Large Volu me ECTS



        The auctions will employ the general structure described in the Phase 2 Transition
Plan filed with DEO’s application, albeit with several changes in the nature of the service
to be provided by SCO suppliers. In particular, SCO service will be provided as Energy
Choice commodity service rather than DEO-provided sales service and, as such, will be
subject to applicable sales and use tax, which suppliers will remit to the State of Ohio.
DEO will bill SCO customers on behalf of the supplier and remit proceeds to the supplier
using the process employed in the Energy Choice program. By contrast, SSO service will
continue to be provided under the Company’s sales service rate schedules under which
DEO acquires wholesale supply from winning bidders and resells it to customers at the
same price.




         1
          In order to participate in the Energy Choice program, a customer must have no arrears of 30 days
or more, be current on a payment plan to discharge those arrears, or not have broken a prio r pay ment plan
more than once in the preceding 12-months.
         2
          Transitional customers co mprise Choice-elig ible customers that may be prov ided SSO
commodity service for up to two consecutive billing periods. Such customers include those establishing
new service and those whose Energy Choice supplier agreement or agg regation program terminates without
timely enro llment with another supplier or aggregator.



                                                   -5-
        The two auctions will be conducted on the same day or, if both auctions cannot be
completed in a single day, over the course of two days. Results of both auctions will
require Commission approval.


TIMING AND ADMINISTRATION

        Below is a list of the key events and tentative dates that DEO has established for
the auction process:

STEP                           DESCRIPTION                                   DATE
   1     Preliminary information packages distributed to suppliers          11/1/2009
   2     Information session held for potential bidders                     11/19
   3     Deadline for bidder applications (Attachment 11)                   12/11
   4     Applicants notified of application and creditworthiness results    12/31
   5     Final tranche size and starting auction price announced            1/20/2010
   6     Deadlines for bidder registrations (Attachment 12)                 1/22
   7     Information session and trial auction for registered bidders       2/2
   8     Auction starts                                                     2/9
   9     PUCO ruling on auction results                                     2/10
  10     Gas supply agreements executed                                     3/1
  11     Gas flow starts                                                    4/1
  12     Initial demonstration of comparable capacity                       10/25

        The primary DEO contact for applications, creditworthiness documents,
registrations and auction procedures will be:

       Mr. Anthony Sanabria
       Dominion East Ohio
       1201 East 55th Street
       Cleveland, OH 44103
       Phone: 216-736-5558
       Fax: 216-736-6247
       E-Mail: antho75@dom.com

         The November 19, 2009 information session for potential bidders will be held
from 10:00 AM to 2:00 PM at DEO’s offices located at 1201 East 55 th Street, Cleveland,
Ohio. Directions to the facility are available at http://www.dom.com/contact/directions-
to-dominion-offices.jsp. Interested parties can participate by phone by dialing 866-740-
1260 and entering pass code 7365558. The February 2, 2010 information session and
trial auction for registered bidders and the February 9, 2010 auctions will utilize an
Internet-based auction platform similar to that used for the February 10, 2009 auctions.




                                            -6-
STANDARD SERVICE OFFER AUCTION
        The first auction will be for suppliers interested in providing SSO commodity
service. It will employ a descending clock format and will be used to acquire wholesale
natural gas supplies for PIPP and Choice- ineligible customers throughout the term as well
as certain transitional customers that are able to receive SSO commodity service for up to
two consecutive billing periods. The format of the auction will be similar to prior SSO
auctions in that suppliers will compete for the right to serve a portion of aggregate
customer load rather than specific customers. The approximate 16.1 Bcf of the estimated
annual load to be served will be divided into three tranches, and no one supplier will be
able to acquire more than one tranche. Limiting the tranches that suppliers may serve
will promote a diverse supplier base that will minimize the potential impact and risk of
any one supplier defaulting on its supply obligations.

        Because the first auction will be conducted for wholesale supplies with no
customer assignment, the results of this auction will serve as a proxy for the value of
wholesale commodity service over the April 1, 2010, to March 31, 2011 period. As with
the Phase 1 and first Phase 2 auctions, suppliers will indicate whether they are interested
in serving load at the Retail Price Adjustment (“Going Price”) established for the round,
which will be specified as an adder to the closing NYMEX price for the prompt month.
Because there are only three tranches available with a single supplier able to serve no
more than one tranche, a bidder will only indicate its interest in serving a s ingle tranche
at the Going Price for the round. Bidders participating in the first auction do not have to
be certified CRNGS providers.

        Suppliers should refer to the auction information provided for the July 22, 2008,
SSO auction for more information regarding the capacity and operational aspects of SSO
service, which will remain unchanged in the February 2010 auction.


STANDARD CHOICE OFFER AUCTION

         In the second auction involving SCO service, suppliers will compete for the right
to serve the load of tranches of specific Choice-eligible retail customers receiving SSO or
SCO service as of March 2010. The tranches will be comprised of randomly assigned
groups of customers designed to yield similar annual volumes in the aggregate. There
will be nine tranches of Choice-eligible customers included in the auction, each
comprised of approximately 2.6 Bcf of annualized load for about 18,400 residential and
1,770 non-residential customers. Both mercantile and non- mercantile customers will be
included in each tranche. The auction will begin under a descending clock format.
Individual suppliers may bid on multiple tranches up to a three-tranche limit, which
would serve one-third of the available market. A supplier can be awarded bids in both
the SSO and SCO auctions. However, bidders participating in the SCO auction must be
certified CRNGS providers.

       The stakeholder group established to assess Phase 2 customer movement options
concluded that PIPP customers should pay no more for commodity service than non-PIPP


                                            -7-
Choice-eligible SSO customers migrating to SCO service in Phase 2. As a result, the
SCO auction will use the results of the SSO auction to establish the floor price in the
following manner:

      If the SCO retail auction concludes at a price above the SSO wholesale auction
       result, it will terminate in accordance with pre-established end-of-auction rules.

      If the Going Price in the retail auction falls to the wholesale auction price and the
       market remains over-subscribed (i.e., suppliers have indicated a willingness to
       serve more than the nine tranches required to serve the entire SCO market at that
       price), the auction will transition to another format, described below.

           a. After a recess to inform bidders of the transition, suppliers will bid under
              an ascending auction format for the right to serve tranches of customers at
              the price established in the SSO auction.

           b. Bids will be submitted as the total number of tranches that the supplier is
              willing to “purchase” at the value identified for the round. The market
              will be cleared when there are just enough bids at a particular purchase
              price to serve the approximate 23.1 Bcf market being bid upon. Winning
              suppliers will be awarded the right to serve the load of customers in their
              tranche(s) at the price established in the wholesale supply auction.

        In the event an ascending auction format is implemented, winning suppliers will
make a one-time payment to DEO payable by March 15, 2010, based on the results of
that auction. DEO will return those funds to customers by crediting amounts that would
otherwise be recovered through the Transportation Migration Rider – Part B. That rider
is applicable to all SSO, SCO and Energy Choice customers. As a result, non-commodity
rates for all of those customer classes will be affected equally, thereby avoiding the
market disruption that would occur if the payments were to be credited to only a portion
of the market.

CUSTOMERS TO BE INCLUDED IN SSO
        The customers that will be served with supply acquired through the wholesale
SSO auction will be comprised of two groups: (1) those able to receive SSO commodity
service on a continual basis; and (2) those who can obtain commodity service from the
SSO pool only for a limited time.

        PIPP and Choice- ineligible customers will receive SSO service on a continual
basis throughout the one-year term. Some of those customers may become Choice-
eligible and leave the SSO pool during the one-year term by selecting an Energy Choice
supplier or participating in an opt-out governmental aggregation program. Other SSO
accounts may become inactive and leave the pool if, for example, they move or are
disconnected for non-payment. Customers that have been disconnected for non-payment




                                            -8-
will remain in the SSO pool once they are reconnected until such time as they become
Choice-eligible.

        The following Choice-eligible customers will be able to receive SSO service for
up to two consecutive billing periods:

       Customers establishing new service that have not yet selected an Energy Choice
        supplier or been enrolled in an opt-out governmental aggregation program.

       Customers whose Energy Choice supplier agreement or aggregation program
        terminates without timely enrollment with another supplier or aggregator.

        Choice-eligible customers temporarily receiving SSO commodity service may
enroll with an Energy Choice supplier or be included in an opt-out governmental
aggregation program before the two- month period is complete.


CUSTOMERS TO BE INCLUDED IN SCO
        Suppliers awarded tranches in the SCO auction will initially serve DEO’s Choice-
eligible customers receiving SSO or SCO service as of March 2010. Following the
auction, customers in a supplier’s SCO pool can change for a number of reasons such as:
       Enrollment with an Energy Choice supplier
       Participation in an opt-out governmental aggregation program
       Termination of service to the account due to non-payment or other reason
       Change in status from Choice-eligible to Choice- ineligible
        SCO suppliers should note that, by being awarded a tranche of customers, they
are obligated to take on additional Choice-eligible customers that may be assigned to
suppliers on a rotating basis pursuant to the terms of the stipulation. However, as noted
in the section below, not all Choice-eligible customers receiving SSO service for up to
two consecutive billing periods will be assigned to an SCO supplier.


POST-AUCTION COMMODITY SERVICE OPTIONS
        The stipulation provided additional details regarding the commodity service
options that will be available to customers after the initial movement of Choice-eligible
sales customers to SCO service through the retail SCO auction. The following types of
customers may receive SSO commodity service for up to two consecutive billing periods:

       New Choice-eligible customers 3 will receive at least one SSO bill, after which
        they may enroll with an Energy Choice supplier or participate in an opt-out
        3
           New customers include those (a) establishing service at DEO for the first time, (b) relocating
within DEO’s service territory and whose Energy Choice or aggregatio n agreement is not portable, and (c)
restoring service more than 10 days after being disconnected for non -payment.



                                                  -9-
       governmental aggregation program. If they do not do so, such customers will,
       after their second SSO bill, be assigned to an Energy Choice Supplier that has
       agreed to accept customers at the price established in the retail SCO auction under
       the standard terms and conditions of SCO commodity service included in DEO’s
       tariff. Suppliers awarded tranches in the SCO auction are obligated to take on
       additional Choice-eligible customers that will be assigned to suppliers on a
       rotating basis. Other Energy Choice suppliers have the option of participating in
       that process and must notify DEO if they wish to do so.

      Choice-eligible customers whose opt-out governmental aggregation program is
       terminated may enroll with an Energy Choice supplier or participate in an opt-out
       governmental aggregation program if a subsequent one is offered. If they do not
       do so, such customers will, after their second SSO bill, be assigned to an Energy
       Choice Supplier that has agreed to accept customers at the price established in the
       retail SCO auction under the standard terms and conditions of SCO commodity
       service included in DEO’s tariff. Supplier participation will be handled in the
       manner described for new Choice-eligible customers.

      Choice-eligible customers whose Energy Choice or opt- in governmental
       aggregation contract expires without renewal may enroll with an Energy Choice
       supplier, participate in an opt-out governmental aggregation program or elect to
       be assigned to an Energy Choice Supplier that has agreed to accept customers at
       the price established in the retail SCO auction under the standard terms and
       conditions of SCO commodity service included in DEO’s tariff. If they do not do
       so, such customers will after their second SSO bill be assigned to an Energy
       Choice Supplier that has agreed to accept customers at the supplier’s posted
       monthly variable rate (“MVR”) under the standard terms and conditions of SCO
       service included in DEO’s tariff.

        All Choice-eligible SSO, SCO and MVR commodity service customers are
eligible to be enrolled in opt-out governmental aggregation programs. A summary of the
preceding commodity service options in matrix form is included as Appendix A.

IMPLICATIONS FOR ENERGY CHOICE SUPPLIERS


        Energy Choice suppliers must make several elections following the February
2010 auction even if they are not awarded any tranches in the auction process. In
particular, they need to notify DEO if they are interested in (1) taking assignments of
customers at the price established in SCO auction and/or (2) taking assignments of
customers at a monthly variable rate that will be posted by the supplier.
        As noted above, Choice-eligible customers can receive SSO service for up to two
consecutive billing periods, after which they will be assigned on a rotating basis to a
supplier. New customers and those returning to SSO service after their opt-out
governmental aggregation program is terminated will be assigned to a supplier that agrees
to render commodity service at the price established in the SCO auction. Customers


                                           - 10 -
returning to SSO service after their Energy Choice or opt- in governmental aggregation
agreement expires can elect to receive SCO-priced service or, if they do not make that
election or otherwise re-enter the Energy Choice program, they will be assigned to a
supplier rendering commodity service at the supplier’s posted monthly variable rate,
which may differ from the SCO price for the month.


OTHER CONSIDERATIONS
        SCO pools will be administered using the process that is currently in place for
Energy Choice marketers, and SSO suppliers will continue to be administered using the
current process. Because the term of the SSO and SCO service coincides with the
beginning storage injection season, there will be no required purchase of storage
inventory in place on April 1.
        There are several other operational considerations that will affect the commodity
service economics of suppliers regardless of whether they are awarded tranches in the
February 2010 auctions.
          Due to the small volumes needed for DEO’s isolated markets in Woodsfield
           and Powhatan Point, DEO will release the associated Texas Eastern capacity
           only to SSO providers and will require them to nominate volumes to those
           delivery points based on targets provided by DEO. In order to ensure
           adequate deliveries into DEO’s much larger isolated Ashtabula market area,
           DEO will require Energy Choice, SSO and SCO suppliers to accept a release
           of the associated Tennessee Gas Pipeline (“Tennessee”) and corresponding
           downstream Dominion Transmission (“DTI”) capacity needed to serve that
           area on a pro rata basis. All suppliers will be obligated to nominate volumes
           through those pipelines based on targets provided by DEO. The amount of
           Tennessee and corresponding downstream DTI capacity to be released will be
           adjusted each month to reflect each supplier’s pro rata share of the total
           Energy Choice, SSO and SCO market. Because Tennessee deliveries to the
           Cochranton, PA interconnection must be delivered to DEO through DTI, only
           the DTI portion of the release will count towards the supplier’s comparable
           capacity requirement.
          All other capacity will be made available to Energy Choice, SSO and SCO
           suppliers on a pro rata basis as done in conjunction with previous auctions.
           The pro rata calculations will be performed separately for DEO’s East Ohio
           and West Ohio systems because they are served by different upstream
           pipelines. SSO suppliers will be required to accept pro rata releases, while
           SCO and Energy Choice suppliers will initially have the option of accepting
           the capacity. Unlike the on-system storage and Tennessee/DTI capacity
           assignments, the other capacity released to suppliers will not follow customer
           load, i.e., once capacity is released to a supplier, it will remain released to the
           same supplier unless recalled. Under the terms of the release, the supplier will
           not be able to change the primary receipt or delivery points stated on the
           contract, and DEO will retain any associated right-of-first-refusal rights upon
           contract expiration. If any capacity made available to suppliers is not initially


                                           - 11 -
           acquired through the capacity release process, it will be reposted and made
           available to other suppliers on a non-discriminatory basis. Energy Choice and
           SCO suppliers will be required to accept a pro rata release of any capacity that
           remains unreleased after being reposted. Potential bidders should review the
           Capacity Release Information Package for additional details.
        Effective April 1, 2010, DEO’s fuel retention and Btu-to-Mcf conversion rates
will be updated for the period from April 1, 2010, through March 31, 2011. DEO will
announce the new fuel retention and Btu-to-Mcf conversion rates prior to the February
2010 auction.




                                          - 12 -
                                                                  APPENDIX A
                   DOMINION EAST OHIO POST SCO AUCTION COMMODITY SERVICE OPTIONS


                                                                                           Service Options
                                                 Standard Service           Standard Choice           Monthly Variable           Energy Choice or
 Type of Choice-Eligible Custome r                  Offer (SSO)               Offer (SCO)              Rate (MVR)                    Opt-Out
                                                          (1)                        (2)                        (3)                Aggregation
                                                                                                                                  Yes, but not until
                                                                               Yes, without
New Customer (4)                                         Yes                                                    No                an initial SSO bill
                                                                               election (5)
                                                                                                                                       is issued
Customer whose opt-out governmental                                            Yes, without
                                                         Yes                                                    No                        Yes
aggregation program is terminated                                              election (5)
Customer whose Energy Choice or opt-
                                                                                                          Yes, without
in governmental aggregation contract                     Yes                Yes, with election                                            Yes
                                                                                                          election (5)
expires without renewal


    1. SSO co mmodity service is available to Choice -eligib le customers for up to two consecutive billing periods. Choice-elig ible SSO customers may be
        enrolled in opt-out government aggregation programs.
    2. SCO service is the NYM EX + offer based on the SCO auction result that is made available by Energy Choice suppliers that participate in the SCO
        assignment process. Such suppliers will be assigned customers on a rotating basis. SCO customers may be enrolled in opt-out government
        aggregation programs.
    3. MVR co mmodity service is the monthly variab le rate that is posted by Energy Choice suppliers that participate in the M VR assignment process.
        Such suppliers will be assigned customers on a rotating basis. MVR customers may be enrolled in opt -out government aggregation programs.
    4. New customers include those (a) establishing service at DEO for the first time, (b) relocating within DEO’s service territory an d whose Energy
        Choice or aggregation agreement is not portable, and (c) restoring service more than 10 days after being disconnected for non -payment.
    5. Represents the default commodity service provided to customers who have not elected another type of commodity s ervice.



                                             - 13 -

				
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