STATE OF THE NATURAL GAS INDUSTRY John B. Ramil President & CEO TECO Energy 2014 FNGA Annual Convention
Peoples Gas Service Area Tampa Electric & Peoples Gas Service Area 2 2
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 Commercial / Industrial Power Generation Load Expected Residential Development Rebound CNG for Transportation Future – LNG for Transportation 4
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 2011 = 728 units 2012 = 702 units 2013 = 4,828 units 2014 end of May =
NATURAL GAS GROWTH DRIVERS CNG Vehicle Fleets & Vehicle Fueling Stations Results 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 7
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 3 rd 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