As discussed previously in Section VI, Northern currently accesses supplies from the “North” via PNGTS and M&NP. A detailed review of the potential supply sources and/or projects under development by PNGTS and M&NP are provided below.
a) PNGTS – Continent-to-Coast Expansion Project
As shown in Figure VIII-1 below, the proposed PNGTS C2C Project would provide incremental firm transportation capacity from Pittsburg, New Hampshire (i.e., the interconnection point with the TCPL Mainline) to any delivery point up to and including Westbrook, Maine (i.e., the interconnection point with the PNGTS/M&NP Joint Facilities), with an option to deliver to any point on the PNGTS/M&NP Joint Facilities from Westbrook, Maine to Dracut, Massachusetts. The PNGTS C2C Project would provide an incremental 167,000 Dth/day of capacity from Pittsburg to Westbrook; the capacity to Dracut on the PNGTS/M&NP Joint Facilities would remain at the current level of 210,000 Dth/day.121
Figure VIII-1: PNGTS C2C Project122
121
See, Portland Natural Gas Transmission System, “Portland Natural Gas Transmission System’s Continent to Coast Expansion Project, Open Season Notice for Firm Service from December 3, 2013 to January 24, 2014”.
122
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As indicated to the MPUC in the ECRC proceeding, PNGTS, in conjunction with TCPL and Iroquois, proposes three alternative transportation routes as part of the C2C Project. Specifically, these alternative routes include: (i) from Wright, New York on Iroquois to interconnect with the TCPL Mainline at Waddington, New York and from the TCPL Mainline to interconnect with PNGTS at East Hereford, (ii) from Dawn, Ontario on the TCPL Mainline to interconnect with PNGTS at East Hereford, or (iii) from Chippawa or Niagara on the TCPL Mainline to interconnect with PNGTS at East Hereford.123 The C2C Project would not require any construction on PNGTS; however, it would require an expansion upstream (i.e., TCPL Mainline/TQM), as well as other system modifications on the TCPL Mainline and Iroquois.124 The estimated daily reservation rate on the PNGTS component of the various routes (i.e., the C2C Project rate) is $0.60/Dth,125 with a required minimum commitment term of 15 years and a proposed in- service date of November 1, 2017.126
The initial open season for the PNGTS C2C Project closed on June 28, 2013, and there has not been any public announcements regarding shipper interest. In early December 2014, PNGTS indicated a new open season for the PNGTS C2C Project will be held in January 2015, which will align with open seasons by TransCanada, Union Gas, and Iroquois (which are discussed in detail below).127
b) TransCanada 2017 New Capacity Open Season
As discussed, in alignment with the PNGTS C2C Project, TransCanada is currently holding an open season for new firm transportation service on the TCPL Mainline, with an in-service date of November 1, 2017 (i.e., the “2017 NCOS”). As outlined in the 2017 NCOS notice, short- and long-haul firm transportation services are being offered for a minimum term of 15 years from the Empress, Niagara Falls, Chippawa, Parkway, and Iroquois receipt points to any delivery point on the TCPL Mainline system at the transportation tolls submitted to the NEB in the TCPL Mainline Settlement application. Shippers will also have an option of converting existing long-haul firm transportation contracts to short- haul service contracts. Upstream and/or downstream transportation services (if needed) will be contracted for separately (i.e., directly with Union, Iroquois and/or PNGTS). The 2017 NCOS is scheduled to close on January 30, 2015.128
123
See, Portland Natural Gas Transmission System, ECRC Proposal, MPUC Docket No. 2014-00071, December 5, 2014, at 5.
124
See, Portland Natural Gas Transmission System, “Portland Natural Gas Transmission System’s Continent to Coast Expansion Project, Open Season Notice for Firm Service from December 3, 2013 to January 24, 2014”.
125
Ibid.
126
See, Portland Natural Gas Transmission System, ECRC Proposal, MPUC Docket No. 2014-00071, December 5, 2014, at 5.
127
See, Portland Natural Gas Transmission System, ECRC Proposal, MPUC Docket No. 2014-00071, December 5, 2014, at 7; and TransCanada PipeLines Limited, “TransCanada’s Firm Transportation New Capacity Open Season”, December 12, 2014.
128
See, TransCanada PipeLines Limited, “TransCanada’s Firm Transportation New Capacity Open Season”, December 12, 2014.
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c) Union Gas Dawn to Parkway Firm Transportation Open Season
Union Gas is currently offering incremental firm capacity for a minimum term of 15 years along three transportation paths; specifically, (i) Dawn to Parkway, (ii) Dawn to Kirkwall, and (iii) Kirkwall to Parkway (see Figure VIII-2 below). As indicated in the open season notice, incremental capacity of up to 650,000 GJ/day will be available in November 2017, and 550,000 GJ/day in November 2018. Rates are proposed to be in accordance with the existing Union Gas M12 and M12-X rate schedules. Similar to TransCanada’s 2017 NCOS, the binding open season bids are due by January 30, 2015.129
Figure VIII-2: Union Gas System130
d) Iroquois South-to-North Project
Iroquois initially held an open season for the South-to-North (“SoNo”) Project in late 2013/early 2014 in conjunction with an open season on TransCanada and the initial open season for the PNGTS C2C Project.131 As proposed, the SoNo Project would reverse flows on the Iroquois system in order to transport natural gas supplies to Waddington, New York (i.e., the interconnection with the TCPL Mainline). Specifically, as shown in Figure VIII-3 below, the proposed SoNo Project will transport up to 300,000 Dth/day of natural gas supplies from interconnections with Dominion at Canajoharie, New York,
129
See, Union Gas, “Dawn to Parkway Firm Transportation Open Season”, December 12, 2014.
130
Ibid.
131
Please note that the proposed SoNo Project rates from the initial open season held in late 2013/2014 from the Wright, New York receipt point were $0.22/Dth for anchor shippers and $0.27/Dth for non-anchor shippers. See, Iroquois Gas Transmission System, “South-to-North Project Open Season”, December 3, 2013.
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Constitution Pipeline at Wright, New York, and Algonquin at Brookfield, Connecticut and deliver to points within Iroquois’ Zone 1 and to the interconnect with TransCanada at Waddington, New York.132
Figure VIII-3: Iroquois SoNo Project – Proposed Route
As discussed previously, PNGTS has announced that an open season on Iroquois will be held in January 2015 in alignment with the open seasons for the PNGTS C2C Project and TCPL 2017 NCOS.133