Capacity Supply Planning in Georgia’s Deregulated Natural Gas.pptVIP

Capacity Supply Planning in Georgia’s Deregulated Natural Gas MarketKevin GreinerPresident CEOGas South, LLCBonbright ConferenceOctober 4, 2007 Background Key Considerations for a Capacity Supply Plan Lever #1: Design Day Lever #1: Design Day (Cont’d) Lever #2: Storage Assets Lever #2: Storage Assets (Cont’d) Lever #2: Storage Assets (Cont’d) Lever #3: Access to Alternative Supplies Lever #3: Access to Alternative Gas Supplies Lever #3: Access to Alternative Gas Supplies Lever #3: Access to Alternative Gas Supplies Lever #3:Access to Alternative Gas Supplies Georgia is one of the few markets in the US where retail natural gas prices are not regulated Eleven marketers currently certified by the PSC and actively competing for customers Each marketer receives an allocation of the utility’s (AGL’s) supply and storage assets as determined by market share The capacity supply plan specifies the types and amounts of storage and supply assets that AGL will own or contract for Process is overseen by the GA PSC, which approves a capacity plan every three years AGL’s proposed capacity plan is the product of a settlement process among AGL and the marketers, with observation by PSC staff The Capacity Supply Plan Process in Georgia AGL presents a draft plan to the natural gas marketers for review and discussion Marketers and AGL discuss plan options, changes, and technical implementation AGL seeks a negotiated settlement with all or some of the marketers; if successful, a Stipulation Agreement is presented to the PSC with the proposed plan A panel consisting of AGL and marketer representatives agree to testify, along with PSC staff and other expert witnesses Hearings are held where direct testimony and cross-examinations occur PSC Commissioners considers testimony and approve a plan they find acceptable Reliability Cost Flexibility Diversity Key Levers for a Capacity Supply Plan Design Day Storage transportation assets Access to alternative gas suppli