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National Fuel Gas Distribution Corporation's Responses to Heating Fuel Oil Supply Coordination with Interruptible Gas Service Customers

Strategic Insights

— 2 min read

National Fuel Gas Distribution Corporation (NFGDC) submitted responses to the New York State Department of Public Service regarding issues related to heating fuel oil supply coordination with interruptible gas service customers in February 2015. The corporation provided data and insights on customer conversions, natural gas consumption, and operational flow orders (OFOs) during the past two winter seasons. The following analysis is based on the NFGDC's responses to the notice soliciting comments issued on July 2, 2015.

Key Takeaways:

  • Between 2006 and 2015, approximately 0.19% of NFGDC's customer base converted from heating fuel oil to firm natural gas service, with 954 total conversions over the ten-year period.
  • These conversions represented an increase in the volume of natural gas delivered, with an estimated 186,000 mcf of gas consumed annually.
  • NFGDC did not have any customer conversions from heating fuel oil to non-firm natural gas service over the last ten years.
  • There was one conversion from interruptible sales to firm transportation in 2014 in NFGDC's service territory.
  • None of the non-firm customers failed to adhere to OFOs and service interruptions during the two winter seasons in question.
  • NFGDC did not interrupt its non-firm customer during the time period, which may indicate that the customer was able to receive heating fuel oil deliveries or that the customer did not require such deliveries.
  • The corporation uses informal communications to discuss interruptions with impacted parties as the winter season progresses.

Statistics:

  • 954 customer conversions from heating fuel oil to firm natural gas service between 2006 and 2015.
  • Estimated 186,000 mcf of gas consumed annually as a result of these conversions in 2015.
  • No customer conversions from heating fuel oil to non-firm natural gas service over the last ten years.
  • 1 conversion from interruptible sales to firm transportation in 2014.
  • No instances of non-firm gas customers being unable to receive deliveries of alternate heating fuel supplies from November 1, 2014 through April 1, 2015, and from November 1, 2013 through April 1, 2014.
  • No indications of shortage or distribution failure for heating fuel oil from November 1, 2014 through April 1, 2015, and from November 1, 2013 through April 1, 2014.
  • Temperature set point not coordinated with specific distribution pressure situation for utility with a service classification that interrupts customers based on weather attaining a specific temperature set point.

Sources:

  • National Fuel Gas Distribution Corporation, Responses to 15-G-0185 Data Requests, July 30, 2015.
  • New York State Department of Public Service, Notice Soliciting Comments, July 2, 2015.

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