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2014 Enbridge Day - Enbridge Gas Distribution
Glenn Beaumont, president of Enbridge Gas Distribution, discussed the company's strong position and continued growth. The approval of its custom incentive regulation plan provides a solid foundation for investment through 2018. Additionally, approval of the GTA project will increase capacity, reliability, and supply diversity for gas customers. Enbridge will focus on ensuring customer access to sufficient and competitively priced gas supply through strategies around storage and transportation.
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2014 Enbridge Day - Enbridge Gas Distribution
- 1. Enbridge Day 2014 GasDistribution Glenn Beaumont President, Enbridge Gas Distribution
- 2. Enbridge Day 2014 KeyMessages • Strong business fundamentals • Approval of incentive regulation model provides a solid foundation for continued investment • GTA project approval provides flexibility, reliability and access to supply basins for gas customers • Gas supply, storage and pipeline capacity strategies designed to protect and enhance customer value
- 3. • Natural gasremains competitive vs. other fuels • Customer additions remain steady • New majority Liberal government in Ontario supports expanding access to natural gas Business Fundamentals 0.0 0.5 1.0 1.5 2.0 2.5 Actual 2012 Actual 2013 Forecast 2014 LRP 2015 LRP 2016 LRP 2017 LRP 2018 Average Number of Customers Millions Strong competitive position and continued growth $0 $1,000 $2,000 $3,000 $4,000 Natural Gas Heating Oil Electricity Propane Annual Bill Comparison 3
- 4. •First Custom IRplan approved in Ontario •Five-year plan (2014 - 2018 inclusive) •Fair and balanced decision for customers and shareholders - Allows for ROE upside and supports capital investment Custom Incentive Regulation Plan 0% 2% 4% 6% 8% 10% 12% 2014 2015 2018 Current ROE Forecasts (2014 – 2018) Formula ROE ROE Premium Board Approved Forecast 4 A solid foundation for continued investment
- 5. Custom Incentive RegulationPlan - Capital 5 •Approval of five-year estimated capital to meet customer growth and system expansion 0 200 400 600 800 1,000 2008 2009 2010 2011 2012 2013 2014 2015 2106 2017 2018 $Millions GTA WAMS Core Previous IR approved capital New IR approved capital
- 6. • Approved byOntario Energy Board in January • Increases capacity/reliability in the GTA/downtown Toronto • Provides additional supply/basin optionality • Construction begins: December 2014 • In service: Fall 2015 GTA Project Segment B Segment A Total Cost = ~$700 M Provides increased capacity, reliability and supply diversity for gas customers 6
- 7. • Increasing supply diversity -Access to Marcellus/Utica • Optimizing transport - Reducing distance for winter needs Gas Supply WCSB Chicago Dawn Niagara 2015 7 Focused on ensuring customer access to sufficient supply at lowest cost 2018
- 8. • Access toDawn storage key to managing price volatility for customers • More reliance on storage in future • Increased storage development Natural Gas Storage 8 Increased storage facilities to protect customers from cost variability
- 9. TCPL Capacity Requirements •Retention of required existing capacity and access • Continued economic/ industrial competitiveness vs. nearby jurisdictions Remaining Natural Gas Conversion to Oil Alternative Oil Proposal Option New Oil Pipeline (TCPL Proposed) TCPL Proposed Replacement Gas Pipeline 9 Ensure no impairment of customer supply access or increased Eastern Canada rate base burden
- 10. Enbridge Day 2014 KeyTakeaways • Business fundamentals remain strong • Incentive Regulation model provides stability • First of its kind, custom plan in Ontario that allows for required investments • GTA Project Approval provides increased flexibility, reliability and access to supply basins • Gas supply, storage and pipelines capacity strategies will benefit customers
- 11. Enbridge Day 2014 Q&A GlennBeaumont President, Enbridge Gas Distribution