STATE OF THE
NATURAL GAS
INDUSTRY
John B. Ramil
President & CEO TECO Energy
2014 FNGA Annual Convention
Peoples Gas Service Area
2
2
Tampa Electric & Peoples Gas Service
Area
FLORIDA’S
ELECTRICITY MARKET
• 60% of Florida Electricity Produced from Natural Gas
• 25% for the United States
• Planned Generation Additions – Predominantly Gas-fired
• Limited Electrical Import Capability
• 3500 MW, with Peninsular Florida Peak of 43,000 MW
• Long Distances to Transport Fuel
Electricity Rates: Below National Average
3
FLORIDA’S LDC
MARKET
• Growth Drivers
•
•
•
•
4
Commercial / Industrial Power Generation Load
Expected Residential Development Rebound
CNG for Transportation
Future – LNG for Transportation
NATURAL GAS
GROWTH DRIVERS
• Added Commercial / Industrial Load
• Favorable gas pricing
• Lower emissions
• Results
• Long term transportation contracts
• Long term distribution contracts
5
NATURAL GAS
GROWTH DRIVERS
• Residential Housing
• Rebound has begun
•
•
•
•
6
2011 = 728 units
2012 = 702 units
2013 = 4,828 units
2014 end of May = 4336
NATURAL GAS
GROWTH DRIVERS
• CNG
• Vehicle Fleets & Vehicle Fueling Stations
• Results
•
•
•
•
•
•
7
572 vehicles
22 fleet customers
26 CNG fueling stations (in the last 4 years)
April 2014 added HART station
Increase in government RFPs
Private fleets steady
NATURAL GAS
GROWTH DRIVERS
• LNG
• Trucking
• Marine and rail
• Peaking fuel
8
NEW MEXICO GAS
COMPANY ACQUISITION
• Announced purchase intent in August 2013
• NMGC is based in Albuquerque
• 509,000 customers across New Mexico
• 740 employees
• Settlements reached
• New Mexico Industrial Energy Consumers
• New Mexico Attorney General’s office
9
NEW MEXICO GAS
COMPANY ACQUISITION
• Next Steps
• Hearing examiner’s “recommended order” in coming weeks
• PRC’s vote due later this summer
• Closing expected in 3rd Quarter
10
FLORIDA LEGISLATURE /
REGULATORY SUPPORT
• FEECA (1980)
• Standard Residential Rebates (2008)
• Standard Commercial Rebates (2014)
• CNG Vehicle Legislation HB579 (2103)
• Cast Iron / Bare Steel Riders (2013)
11