Keene Division DG 21-050 Summer 2021 Cost of Gas

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Page 1 of 3 Liberty Utilities (EnergyNorth Natural Gas) Corp. d/b/a Liberty – Keene Division DG 21-050 Summer 2021 Cost of Gas Staff Technical Session Data Requests - Set 1 Date Request Received: 4/5/21 Date of Response: 4/12/21 Request No. Staff TS 1-1 Respondent: Steve Rokes REQUEST: Ref: Liberty Utilities (EnergyNorth Natural Gas) Corp. d/b/a Liberty Keene Division response to Staff DR 1-1 (including Company’s confidential attachments), Order No. 26,274 (July 26, 2019); Order No. 26,294 (Sept. 25, 2019); DG 20-152, Exhibit 10, Prefiled Testimony of Randall Knepper; DG 20-152 Transcript November 2, 2020 (Randall Knepper hearing testimony). Liberty Utilities (EnergyNorth Natural Gas) Corp. d/b/a Liberty Keene (Liberty Keene or Company) has identified a new compressed natural gas (CNG) supply contract, effective July 1, 2021 for a term of three years, with an option to renew for one year. This contract is scheduled to go into effect during the Summer 2021 COG season. At a minimum, the contract appears to contradict some New Hampshire Code of Administrative Rules, Puc 506.01 requirements, and safety directives established in Docket 17-068. See Orders Nos. 26,274 and 26,294; DG 20-152, Exhibit 10, prefiled Testimony of Randall Knepper; DG 20-152 Transcript November 2, 2020 (Randall Knepper hearing testimony). While not an exhaustive list, please comment on the following aspects of the new contract, and explain whether the Company agrees that there is a contradiction, inconsistency, or ambiguity between the new contract and PUC requirements and safety directives. If yes, please indicate the Company’s expectations regarding how the new contract will be changed or clarified, and whether the contract price will increase, decrease, or remain the same. If the costs may change, please indicate if the change would likely be due to a change in supply costs, demand charges, or something else. a. Liberty is identified as an “end-user” of CNG on Item 1 of Exhibit A Terms and Conditions of CNG Master Agreement. Typically, the “end-user” is considered a customer of Liberty Keene’s who uses the gas supplied by the Company. Please confirm that Liberty Keene is not the “end-user” for the Keene project serving Monadnock Plaza customers. b. Reference new contract Exhibit C Item 3 (g). For data service, Liberty will provide wired internet connection to Seller (XNG) “to operate and monitor decompression equipment on a 24 hours per day, 7 days per week basis.” Although this Item applies to

Transcript of Keene Division DG 21-050 Summer 2021 Cost of Gas

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Liberty Utilities (EnergyNorth Natural Gas) Corp. d/b/a Liberty – Keene Division

DG 21-050 Summer 2021 Cost of Gas

Staff Technical Session Data Requests - Set 1

Date Request Received: 4/5/21 Date of Response: 4/12/21 Request No. Staff TS 1-1 Respondent: Steve Rokes REQUEST: Ref: Liberty Utilities (EnergyNorth Natural Gas) Corp. d/b/a Liberty Keene Division response to Staff DR 1-1 (including Company’s confidential attachments), Order No. 26,274 (July 26, 2019); Order No. 26,294 (Sept. 25, 2019); DG 20-152, Exhibit 10, Prefiled Testimony of Randall Knepper; DG 20-152 Transcript November 2, 2020 (Randall Knepper hearing testimony). Liberty Utilities (EnergyNorth Natural Gas) Corp. d/b/a Liberty Keene (Liberty Keene or Company) has identified a new compressed natural gas (CNG) supply contract, effective July 1, 2021 for a term of three years, with an option to renew for one year. This contract is scheduled to go into effect during the Summer 2021 COG season. At a minimum, the contract appears to contradict some New Hampshire Code of Administrative Rules, Puc 506.01 requirements, and safety directives established in Docket 17-068. See Orders Nos. 26,274 and 26,294; DG 20-152, Exhibit 10, prefiled Testimony of Randall Knepper; DG 20-152 Transcript November 2, 2020 (Randall Knepper hearing testimony). While not an exhaustive list, please comment on the following aspects of the new contract, and explain whether the Company agrees that there is a contradiction, inconsistency, or ambiguity between the new contract and PUC requirements and safety directives. If yes, please indicate the Company’s expectations regarding how the new contract will be changed or clarified, and whether the contract price will increase, decrease, or remain the same. If the costs may change, please indicate if the change would likely be due to a change in supply costs, demand charges, or something else.

a. Liberty is identified as an “end-user” of CNG on Item 1 of Exhibit A Terms and Conditions of CNG Master Agreement. Typically, the “end-user” is considered a customer of Liberty Keene’s who uses the gas supplied by the Company. Please confirm that Liberty Keene is not the “end-user” for the Keene project serving Monadnock Plaza customers.

b. Reference new contract Exhibit C Item 3 (g). For data service, Liberty will provide wired internet connection to Seller (XNG) “to operate and monitor decompression equipment on a 24 hours per day, 7 days per week basis.” Although this Item applies to

Docket No. DG 21-050 Request No. Staff TS 1-1

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the Data Service lines that measure pressures, flows, temps and other sensing points, please confirm that Liberty is ultimately the “operator” of the decompression skid because the skid is downstream of the demarcation point. Further, Staff believes that only Liberty can interrupt the flow of gas to the Keene customers absent a catastrophic failure and even then Liberty should be the entity deciding about interrupting the supply of gas. Please confirm this is Liberty’s intent and understanding generally, and specifically the intent and meaning of Exhibit C Item 3 (g).

c. Please confirm that the demarcation point is the flange on the XNG truck, pre-skid, pre-hose. If not, please explain whether this is a contradiction of PUC regulations and Safety requirements, and explain the terms used in describing the “delivery point,” and “natural gas product” as those phrases are used in the contract’s Summary of Base Terms with contract terms Exhibit C Item 3.b. and Item 3 a, and Exhibit B Items 2a, 2b, 2c. Please confirm that Liberty will monitor the CNG operation and explain what “operational activities. To the extent the supplier is monitoring those same activities, please confirm it iis secondary to Liberty’s responsibility. If not, please explain whether this is a contradiction of PUC regulations and Safety requiremetns, and explain (as requested above).

d. Are there any services that XNG is offering Liberty other than a new contract that includes a demand and supply charges. If there are services please identify and list them.

RESPONSE:

a. From XNG’s perspective, Liberty is the end user to XNG for the purpose of this contract, and the Monadnock Marketplace customers are the end users for Liberty. Liberty purchases the commodity as recorded by the flow meter at the “Delivery Point” prior to “the Buyer’s flanged pipe connection,” as noted in the Master Agreement. Downstream of this point, Liberty meters its company usage and the individual customer usage at the Marketplace.

b. Liberty is ultimately the “Operator” of the decompression skid. Liberty provides the internet connection to the HMI unit built and incorporated into the decompression skid for monitoring pressures, flows, temps, and other sensing points. Liberty then “pulls” all relevant operating information from this point to be sent to Liberty’s Gas Control Center for monitoring and operations of the skid. XNG basically remains as a back-up monitoring company. XNG also monitors the trailer levels in order to maintain a delivery schedule to the site. With the exception of a catastrophic failure, only Liberty can interrupt the flow of gas to the Keene customers and even with such a failure Liberty makes the decision about interrupting supply to the customers.

c. The “demarcation point” for operating purposes is at the hose connection of a CNG Trailer prior to the decompression skid, although not specifically identified in the Master Agreement. In the agreement under the “Summary of Base Terms,” the phrase “Delivery Point” is used to describe the location of the flow meter which is installed prior to the “flanged pipe connection” point where the “Natural Gas Product” exits the decompression skid and enters the underground distribution piping. This "Delivery Point,” or meter, must be installed downstream of the demarcation point of the hose

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connection to a CNG Trailer so the commodity or “Natural Gas Product” can be metered after passing through the decompression process. Liberty is solely responsible for the safe and reliable operations of the decompression skid downstream of the “demarcation point” as outlined above per the PUC regulations and Safety requirements. The operations of the skid, basically decompressing and regulating pressures and flow, occur automatically based on demand of customers at the Monadnock Marketplace. However, Liberty provides 24/7 monitoring of all processes, with XNG providing secondary or back-up monitoring of the same. As stated in (b.) above, XNG does provide monitoring of natural gas product levels to provide scheduling of on time delivery requirements.

d. XNG is not providing any more or any less service than the original contract. As with the first contract, this contract includes demand and supply charges.

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Liberty Utilities (EnergyNorth Natural Gas) Corp. d/b/a Liberty – Keene Division

DG 21-050 Summer 2021 Cost of Gas

Staff Technical Session Data Requests - Set 1

Date Request Received: 4/5/21 Date of Response: 4/12/21 Request No. Staff TS 1-2 Respondent: Steven Mullen REQUEST: Ref: Liberty-Keene’s response to Staff DR 1-1 (including Company’s confidential attachments) and orders and testimony referenced above. Please provide a copy of the CNG contract, effective July 1, 2021, and highlight the changes Liberty will request, and indicate revisions (proposed wording) that will be suggested to bring the contract into compliance with Commission orders, administrative rules, and safety requirements. What is the Company’s proposed timeframe and process to achieve these changes? RESPONSE: Liberty disagrees with the allegation that the CNG contract somehow violates Commission orders, administrative rules, and safety requirements. Indeed, the Commission previously approved recovery of CNG costs incurred under a CNG contract with similar terms. The CNG contract merely governs the relationship between Liberty and XNG; the contract itself is not subject to such requirements. Rather, it is Liberty’s written operations procedures, written emergency management procedures, the physical construction of the CNG skid itself, and Liberty’s operation of the CNG skid that must comply with the Commission orders and rules. Liberty is in compliance. The change that Liberty will request to the referenced CNG contract is to prepare an amendment to the CNG contract to insert language similar to the following:

To the extent the terms of this CMA conflicts with the Company’s “CNG Skid Operating Procedures” and “Gas Emergency Management Plan – Keene Division,” which are incorporated into this CMA by reference, the terms of the Company’s procedures shall control.

The Company intends to have the above change in place before the contract’s July 1, 2021, effective date. The Company fully understands the need to comply with Commission orders,

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administrative rules, and safety requirements and will continue to operate its business accordingly.

Liberty Utilities (EnergyNorth Natural Gas) Corp. d/b/a Liberty – Keene Division DG 21-050

Summer 2021 Cost of Gas

Staff Technical Session Data Requests - Set 1 Staff TS 1-3 Ref: Liberty-Keene’s response to Staff DR 1-1 (including Company’s attachments); Safety’s marked-up redacted contract with red hand-written notations (“DG 21-050 Staff Tech Session MARKUP of Liberty Response to Staff 1-1”) Please comment on the portions of the contract Staff has marked-up in the attached DG 21-050 Staff Tech Session MARKUP of Liberty Response to Staff 1-1. There are 29 numbered items for review. Please provide Liberty’s clarifications of, and comments on, those items.

CNG MASTER AGREEMENT

REDACTED Docket No. DG 21-050 Attachment Staff 1-1.1

Page 1 of 9

TI1is CNG Master Aareement (thi.~ MCMA•} is entered into as of January 6, 2021 by and between~ Natural Cills LLC, a Delaware limited liability company with an office located at 300 Brickstone Square, Suite 1005, Andover, MA 01810 (t()Gether with its subsidiaries and affiliates ·Seller"), and Liberty Utilities (EnergyNorth Natural Ga~)

Corp. with an office at 15 Buttrid! Road, I.Dndonderry, NH 03053 ("Buyer"). Each of Buyer and Seller may be referred to herein as a "Party" and collectively as the "Parties."

Delivery Period

Purchase Price

Demand O'larges

Commodity Gas

Marketer's Basis Charges

The Initial Term of the agreement is three (3] years from the Effective Date. The

agreement will automatically renew fOf an additional one-year Renewal Term on the rr • ,r,,,,; same tenns and conditions, unless terminated by either Party on written notice \K - I delivered not less than 6 months prior to the expiration of the ttien-current Delivery 'S ,t• f : atural Gas delivered by the Sellet" shall ~ in comprf!sSed form (-J,600- p-si_) _a-nd_,..,__ ...... ~ f ' c/" YJt f (,.;

ressed ior to the Del ivC<"V Po,!!in!!t:..· ~-.::.~::2:::=:::::~=--~.:_:...::-=-=-=-==----1 II~ ,,.,,Ji_~ •• f,l'• Price per MM U for natural gas shall ht! the sum of: ')c ,...a('•> P.,, ~"' (0 c.ommodity Gas; plus ,. .f · µl e,.., (ii) Mari<eter's Basis charges applicable to the purchase of the Commodity Gas; plus I ., ..r'- \ • .f.~~ • (iii) Service Adder. 1 < t •.,

In addition to the Purchase Price Buyer shall pay to the Seller a Demand charge equal to••• annuatty. The Demand Charee shall be payable in 12 monthly \ installments from the Effective Date. ' Unless otherwise ~ected. Commodity Gas stlall default to the index price (per MMBtu)

by notifying XNG at least 10 days prior to the start of such month. The Commodity Gas will remain at such inde,c pricing until Liberty notifies XNG, not later than 10 days prior to the sta ,t of nut month to re:)ume default wicin A '!>ff MMBTU' fee for pipeline capacity paid 10 the capacity holders ~Pl>IY'lng Commodity Gas to the terminal, The Marketer's Basis Charge shall be-for the term of this Aareement for Algonquin CltVBate pricing. The charge per MMBTU will

Pll "~,, lt•JS

1il•·"' fl"''.t•,_ .. . ;\t> fi""

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1----------+-~ when libef"ty chooses lhe Millennium lndeK on_·_ce_. __ _ Service Adder er MMBTU.

Contract Quantity Contr.id Quantity serves as the eape<.ted invoice quantities for deliveries each month. Actual volumes will vary due to weather and normal operations within the oourse of business.

Month MM BTU Month MMBTU

Janua,v._ _____ ~3,400 ______ Ju_l-y ____ -_1_,1_00 ____ __.

Special Provisions

February

Mardi

April

May

June

3,1.00

·-2.600

.-J,800

- 1,:100

-900

Auaust September

October

NOYlllmber

December

Total Annual Volume

Docket No. DG 21-050 Attachment Staff 1-1 .1

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-1,000 - 1,000

-1,400 - 2,100

- 3.300 ___ 23,100

Title & Risk 7 +-'-.;;;...;;.."---..;....;..;....;;.....,_~=c:..~-'---'--'-~-=--:.c....;;;.c:..&..::.:.._;;_~ Dellve Point. ---- --ALL TtRMS AND CONDITIONS INCLUDEO IN THIS CONTRACT SHAU APPLY TO EACH SAL£ AND D£UVCRY Of

PRODUCT BY SEUER TO BUYER ( 1) UNDER THIS CONTRACT AND HEREAFTER (2) WHtll4ER OR NOT UNDER A WRITTEN CONTRACT.

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,b~ Nu.~·, t:.~ J I I- ( d f ~ c.{, ei ' Docket No. DG 21-060 Attachment Staff 1-1 .1

EXHIBIT A - TER SAND CONDmONS. Page 3 ot 9

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tA). 9olt> pam..,.. ,...., WldonWty, and Pad .. DIii,, ....... and .. Qllculs

lrld~~-•ny•nd ...... --. ....... 11111..,_~ ~~tltotllldooeltol.,._)hq~ninOoutrJe,.-r,gto(1J,ny ad 111 0/111 11' ~ Plr1)', 111 (2) brlactl ti hi "'"'"'"' or hi Jllllr• ~-.I_._, 'Midi rlldail P'f1D\II ifilllae (ll'd.dwlgdNlll)or PffllMl'l'

3

Docket No. DG 21-050 Attachment Staff 1-1 .1

Page 4 of 9 ~<tO,-.,louorlilblty' llis ildfmlibb1uliglllclnnlantw hi dlta~

(B) NfltlER PAim' WU BE LW.£ TO 1WE OT1'9 lN>ER THE AGRFAIM FOR CONSfQtJEHTW., NllRCCT ~ PVlfTM 0AIAAGES ~ SPECFIC ~ . EXCEPT M. D<PRl:sst. Y F'ROVl)£I) 1H llilS AGRf'8ENT

11. ..__.: ~ per1ill _,.. II ail 1W11e1 ua.., ._ -.m d hi AglMn•nl III r.ry ~ ...._., !Mlnna-,fi. lllfltwmilorl dolttt{S5/JOO,l)()OJ91'W ldty hUlla, (Dlfl'ngal !MdlialiMylNlcmhc:Ul~.~""'°'1,_....thltl~ ,-~ pq ~ ~ii ital IUdl ,___ kl •dcfion , Stlllr llhal Ill .. .,,. .....,~ ~ ........... S!iOO.QDOCllffllhld ~ linlt Sller•irlJdt~•....,_.-nilardW.._,.._INllbeprinwylndnon-­~ Ehr pa1y nit~ hi ohlr tlit, rol lNI ,_, ffly(30J-,. pllotrob ollll'/tlffllNtan d.aiylldl plic)>. SGlarftlCM111 iflc.licnwllowlbe ~ hi ~ .. llitinaimadbi ..... ~ 1o_,.,-i ....................... ~ ,_...,.._.~ ~ IDh~l~..c!M'IOriledildo ~1nr..-.«-in~~--p,o,,ided.~ll'-thmWnun inNrOICIMf"'8•~ti,,eu,.'alllo.,.._

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bt~- .-. 1~b~1~,h~pa1y...-be• Ill demol ... Mill own,,._,'- been........,~ to •.........,

-•••ldld---~<11•1-.;,edl!v .. .._olw~ b-9111 111919f ~~ h paloddllrNhtl/lf/~tcXlllltY• In~

tt. Ohr. la)Thil~il~llyhiNcthMotNM~lftlOUIAlglllljb _,,m!ldaf"'81~ ThePl1Mtllbri!D,- ........... pledidlonol1'11 CCd1I ~f1'S..tJIMN~n11111MidhillOID4dCCMtlo0ltadtiHew..,.,.... (c)Ead'lflli1r..,..a•t1o,,xyr11t~.,,~~hm1t'lil~. 161 lti ~ O, ~ IJI' • p~ io ~ _,, rtc,11 .,- r""8dy 1n wlidl ft may boaJm& ..-....ilftl6r .. ~wlloondlutl1.._rJllttrtc,llor"""8dy.letWet-ril t-.lijlt.lfPOd..., IOC(lllfflCJll\'dllllnnd, (11)11'- h¥11oMlh~. n (It) hi~• be._ fl'om-' ....... --. ~ .id dalli Ml OnER WAAIWfTES. EJCPRESS ~ U'lJl:D, INClll>NG Ntf WARRANTY Of liDCHANTA8llTY OR A1NF.8S FOO N« PNTTICllAA !'\NOSE, AAt OlSQ.JJUm (IIMnoblNW¥WSwlbe,,-,.ilM11r19nl-,be~l,rhlnddelYIIIY .... daU 11111111 {pollage ~). ~ <nrter 1111v1a1 °' tr, flaimltl nl -1 be elTudho

"'°' pnMQIOll. hawllwr, .. anyllfflhlon idal'"'f rif be Wd ti, t.dorbr ~OWllilr wke,nl,lt .... 1111 •• ~~ b: s.tllleny, 30081idcs1'1'1e ~ . ~ I,_,.,.,_,, MA 018111. Ill No_...,. IO NI~ .. lie

t¥1b'ol,llbll n. ~ m M'IOf'lg tnd t'l9Cllled II'/~~ Ii) Ghr Pl!\' may ~tlil wil!CIOdllp'roblo,_otwPlllyUl'dlo~Widl.._. noc 11e ~ llllN!Old. rn add' . SdGr ,,.., pledge._,_.._,« a-i,r Ht ~or--~.~. arp,,xmdl dHI ~Iii~· any ~ «CJNthndll llt'el1QCINIII ~ l.l)IIM'1 cor..c; ti Whldl cae Sellar aWI

notb6CllldwQ6dm•~m~lllder•~ -.1Nt,,a nr lie~ In -.ni111 ~ 11'/ '11 ,,._,~by,-..,.., Mdt ti IIINdl -.ii OOMdand .._,llhllbetrillliglnll.buClld_.,.Haw.-..nandh wno~ 0)""1 tzlNI .,.,,_noc dlhd lnNI QM.,_.'- b m.q NC lortl ii tr'lf ~ 11M, llillla or oh,~~. otlllUdl '-'"' is 1101 dlhd ... ~ lwti... tit~ and gnllllly~ l9dll'Qlo,IAMie ~~IOitiuW lllllln hnauat gaar, ~pir,nbl ...... • ~ !')Th, i..-111N1 •IOfCOM1N11ftotieletl!IOt~ "Ml 110( lo did fie QNhn:ilon af"' lo bl~ .. ~ ii irllllplll,g .. ~ 111 ""1 ~ 01Pt ol NI~ and aflll' ,._, cb:untn1t n-, be ~ggpad.J1~.ulll!Mdon~•--•dllb ~ The ~ ~ _. be a,;t11C111,1o In ar,r jlddll, ~ion. ,__.. or

odlTI ~ beWMn h ~In~-lie~,._ d MMIQ;p,ow-dld hl~PatywlcqldlDlle ~tA .. -.~ on fie Madi.,.,,.. q,nml or~ ii ~rylolffl. Ill> MIii ~.,..._11111PlflrloNIAi;fvornentwi1,Wor,nd•~brh-llQllt!(. fil-.,NdtlllHa~llllcorelia1NPR11..,.........titldl11101Parly • rMttlllldlPtlty IMj:ll'lll~nltwnolldl,__. ......... .,.. ~ ... ~.,, .. ~,,..,,--~..., ..... Pwlf ...

d9dole h ""'- d .. ~ wllllUI pnor ...... anent 1/11 Ill ahf Ill'\', to "'1 lildlllltr,ufshr,hPatty'I ..,...,._ .. --,.,_.,.

~ lll'--11)1--~ . ~ ....... .,.,,IW'DI aiimlel, «w, '4,deltlly ~ Jmll -- ... -- WV! .... pr1Mdld llll I Pllly tet~a--lardtdoaft ....... IDCWl~or Gtlllr ~ ..... rdlf .. °"" Pt,tv,., .. ..,. ~ llllle fflllit'II .. ~

4

Docket No. DG 21-050 Attachment Staff 1-1.1

Page 5 of9

Docket No. DG 21-050 Attachment Staff 1-1 .1

Page 6 of9

EXHIBrr B - CONSTRUCTION. COMMISSIONING, MAINTENANCE, and TRAILER DELNERY

Al...,_ IO .. dlhayofGN (ao_,. ID hnn • "CNO'}ID h.,,. lnlllr .. ca,nd, .,, J • ""'}f ltlt ~ ,.,_ • • ~ ~((.J\ l •"- f ft

{j f'REPAAAllOH &~ ~ "')i,~ • !k,¥1fllllbt~aablo •-.,~-GD111Mton..t1DCUIIMl 1~~•111t'She') •,_1n1 llOll olSelrt

,.._.ftfdtJwtdOGI!> .......

/~ ~ bt~ID~ P'IPM ..... ....,,IIW"V ...... dilnd. lMI.IIIJ.nd~fllalO,n~-'l

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o. WlrnlpnMdl ~ ~""°"n•.--•~IDh ...... s..,-..1..,_...i...,_._ .. ._.

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911. n (II lf1'9 CMGta h~r.-1t1111N1U11,_tl._,_~.

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6

Docket No. DG 21-050 Attachment Staff 1-1.1

Page 7 of9

.. ,

Docket No. DG 21-050 Attachment Staff 1-1 .1

Page 8 of9

EXHIBIT C - SITE CONSTRUCTION AND RESPONSIBILITIES

Aaconcftoneti hdeM!yolCHG loh a., lffllf .. i;oonct.

1. lfl'E l'flEPAAAT10N &P8MTI1NC:

• • wl be,.,..... lot delii,i. ~-~-"lo CIQNNj an~• (h, "9lll1 to, h ltlllllllb of W.-. ~nl-..,YolCHGloh&¥1f.

b ~--'be~10~....-NSll.~~Mfw1SiaildllMd,IMl,~bJ~.Ml~wll1ullM ~--.dlll,nt1n~111t\ar,yocnoll.,...._a..,,..... ... CNG.,_.,~lonlllfact-. • ••~tCllllM ... .__,..,,~..,._lr1llnl0il,11e2cepetitof~ 111t1Wlt'111dd. MC!OlllrlPf'Plli'G 11111 ~ '-Sllenl bebolrVI ......

c. ~11111...,.twth IJlltltdendalecJipffllnlll1dq~twtmifttpiawll9-'tuffilCCIIIIID~~~an and _,._.awc,nlof ~~ Seh,11il~..,-_,,~nl~---- lf~lllnodw11fl

t 091ERAL.CONOll10ftS: ·•~• CNG~alt. 8ellernlp!Vllldt ,__.~~111dlillie,a.wir,111KM1Nl1 1ot1ea.-. SelliWne,.-,llld~IIOSillld•a!,IJmlDOIINlldlll\S.,, ... piv,,ide~•.,,.~...;c..,,...__~ _, nwet lffA 52 .

....... Seller .... llAcwil tpQb,_...,lfld~l &ai_.1111..,_nl,...ty-.illl~..,_~

rotCHG...,~..i..--.n....,._ ~(.,• i ~'I"' , r., .. "" I. 1,,i fl#'" )4 ~~

s. fflllCM_ ICOPE Of WOM Fat CONlllttJCTlON OFOIG UII..OAOIIG ~ ' "' ft" 1' , .. l 11"'

~al1CNG!rilllq-.i~~~-----~tllftiowplll'lllrldlw~ \...b dliwiCMW___..,_._,~ Ann be~ll~a,Ml~r.Mdenla4IP(llllor~0tl'l.dc .~

.. ~--p!!Mlt~llptatlll,,.- ~ lldail ft....,wllr,g~. ~ \ &-".. \,.,.. 1 lmlN: ,__,_..__........, ,..1oca1-.ch _. rl'1 . . J'- ~tJ"''- •l(O , (l'f- \

/ r;t) GIi ... : ~ t,, t '1\t'- :.-,. ~ luJ' • Al plpir'O dM .... 1/ilfql, mnr lo•~ per-. lftd local COdll "'

• f>lll"Q eamdonlo~oqup,ncdbo -...or, ;o Un9d 141 ., ... ~ ~· .... 0 lo ~-~ ~Nlol~io~•·~ ... 011

c. T..._,_...._ • LM1p4Md.,.,,-i,o .. "9eraq,toecw,111,oc1attne(l).._. • Pl'Mllrilra"llwlllNWG-.'unnlld..i ..... m,,.,.. edlqi.alo .. tor'10ttrdNllrUIIIIIM!d. • u,,i.-. n i.u.111 flllPIMd p11n.

cl(;-...:

• M~pe.-loti.,...,_OOl'OlltM!lledld • ljfltpall t-. • Etdl~ llnlmM'- --~dllOppiljlaUCNG ....,_

• a..tm.i lfOl.ll!Clng ..... WlttoOOl'Mftht&u,w.....,~i,id itdcilnllllllllMNrPA 521111.,,,.- ..ilocill code ~---• lluyl!r•pQllldl 1oo-.i,p~a4irJIY1111 anillfl,g ol • ~ and*m CHG ~tldd • i,-.d9coMlcl.,_tllbtlllGldldloorlllhedgt~hllli\~pld. • Sellll'IO~tloorNClontllfllh~blohlr~

U 11-•~ '-""..,._lohl l'\.Cconi'olllr~rcn"Ola puvldldby&,y.,, lqswlpro,Maallllndi,.,,...comd,n wltallllcF -------~~ _,.,. md:,rdeccnip111ir1~ dlt1A!ianperdiri, 1_,. ptrWNkblllt

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.....:

Docket No. DG 21-050 Attachment Staff 1-1 .1

Page 9 of9

-~ l_.t'

Tilt: l:i! H!!r!IP o ,.., C~ 4 f}

8

Page 1 of 3

Liberty Utilities (EnergyNorth Natural Gas) Corp. d/b/a Liberty – Keene Division

DG 21-050 Summer 2021 Cost of Gas

Staff Technical Session Data Requests - Set 1

Date Request Received: 4/5/21 Date of Response: 4/12/21 Request No. Staff TS 1-3 Respondent: Steven Mullen REQUEST: Ref: Liberty-Keene’s response to Staff DR 1-1 (including Company’s attachments); Safety’s marked-up redacted contract with red hand-written notations (“DG 21-050 Staff Tech Session MARKUP of Liberty Response to Staff 1-1”). Please comment on the portions of the contract Staff has marked-up in the attached DG 21-050 Staff Tech Session MARKUP of Liberty Response to Staff 1-1. There are 29 numbered items for review. Please provide Liberty’s clarifications of, and comments on, those items. RESPONSE: Below are Liberty’s responses to the 29 items noted by Staff:

1. The Safety Division approved Liberty’s CNG operating and emergency management procedures and conducted a physical inspection of the CNG skid prior to operation in 2019. The “delivery point” has not changed from what the Safety Division reviewed and approved as part of that initial start-up.

2. See #1 above. 3. See #1 above. 4. The PUC’s rules have a 7-day storage requirement, which the Company calculates based

on the formula in the rule, and converts the result into the number of trailers that need to be on site to satisfy that requirement. The contract requires the presence of the number of trailers required to meet the current 7-day storage requirement, and the contract contains the flexibility to require more trailers if the 7-day storage requirement increases due to additional load or a change in rules. Note that the Commission approved recovery of CNG costs incurred under the similar 2016 CNG contract with similar language as referenced here.

5. Some language in the contract is superseded or rendered irrelevant by Liberty’s CNG

facility operating procedures and emergency management procedures, which procedures

Docket No. DG 21-050 Request No. Staff TS 1-3

Page 2 of 3

the Company intends to have specifically incorporated into the contract by an amendment. This is one such example of superseded or irrelevant information in the contract in light of those procedures. The proposed amendment will thus resolve this item.

6. The meter measuring the CNG that comes off the CNG trailer is an XNG meter. On

April 8, 2021, the temperature and pressure compensators on the meter were by Liberty and XNG, and the meter tested accurate.

7. This is a standard force majeure provision; the parties chose not to define the highlighted

terms. 8. Ambiguity in contract terms can work to Liberty’s advantage by, for example, not

precluding what is otherwise an obvious force majeure event because it was one degree shy of a specific temperature threshold if one were listed in the contract.

9. There is a flanged connection on the decompression skid that could allow for the bypass

of the CNG and connection of a portable LNG unit, if the CNG facility were to be out of service.

10. At the time of installation of the Liberty-owned sub-meters, the meters were either new

or were previously calibrated meters from Liberty’s meter shop in Nashua. As of this date, no sub-meters have been tested since installation in October 2019.

11. Both Liberty and XNG have the right to witness the test of the other party’s meter.

However, if the non-owning party is not present, then the test results are deemed final. 12. True. 13. Costs of preparing the site for the CNG facility were incurred in prior years and are not

relevant to the term of this agreement. 14. The permitting process was successfully completed prior to the term of this contract, so

this provision is no longer relevant.. 15. See #1. Note that the Commission approved recovery of CNG costs incurred under the

similar 2016 CNG contract with similar language as referenced here. Again, nothing has changed with respect to the physical setup or operation of the facility.

16. See #1. Note that the Commission approved recovery of CNG costs incurred under the

similar 2016 CNG contract with similar language as referenced here. Again, nothing has changed with respect to the physical setup or operation of the facility.

17. See #1 and #5. Note that the Commission approved recovery of CNG costs incurred under the similar 2016 CNG contract with similar language as referenced here.

18. See #1 and #5.

Docket No. DG 21-050 Request No. Staff TS 1-3

Page 3 of 3

19. See #5. Confirmed that maintenance is Liberty’s responsibility. Note that the Commission approved recovery of CNG costs incurred under the similar 2016 CNG contract with similar language as referenced here.

20. See #5. 21. Seller reviewed the site prior to construction of the skid in the summer of 2017. 22. Confirmed that Liberty connected the skid to the distribution system. 23. See #5. 24. Agreed. 25. See #1 and #5. 26. Agreed that Production Avenue is paved. The Company notes that compacted gravel is

described in the “typical” scope of work. The Company further notes that the work was performed in 2017, well before the term of this agreement, so this provision is no longer relevant. In addition, see #21,

27. The Safety Division has previously inspected and approved the piping of the CNG skid. 28. Confirmed. See #5. 29. January 6, 2021; see page 1.