eServices targets the markets attached to the Dominion Transmission and Columbia Transmission pipelines, which serve the Mid‐Atlantic and Northeastern regions of the United States and provide direct access to major storage facilities in the region. These two pipelines provide the majority of the storage serving the Northeast and interconnect with several other major pipelines, including Texas Gas Transmission, Texas Eastern, Transco, Tennessee Gas Pipeline, and specific to Columbia Transmission, Columbia Gulf. Additionally, local area Appalachian production is a significant supply source to both of these pipelines and eServices has strong relationships with producers in these areas.
Within this geographic market, eServices focuses on several opportunities. First, the majority of the Company’s operations are focused on wholesaling natural gas and other ancillary services to large utilities and natural gas marketers. Second, eServices focuses on the commercial and industrial markets behind local distribution company city gates served by Mid‐ Atlantic pipelines. These commercial and industrial clients often have storage contracts with the pipelines and have historically needed significant supply management support from wholesale marketers to replicate the city gate merchant services that were once provided by the local distribution companies. eServices procures its natural gas supply from producers in the Appalachia areas of the United States. These producers depend on eServices for marketing expertise and sell physical product to eServices as a means of distributing their gas into the marketplace. eServices also procures natural gas from A‐rated energy marketing companies and other credit worthy counter-parties and sells to wholesale and commercial/industrial customers.
Dominion Transmission, Inc., headquartered in Richmond, Virginia, is the interstate gas transmission subsidiary of Dominion. The company is primarily a provider of gas transportation and storage services. Dominion operates one of the largest underground natural gas storage systems in the United States with links to other major pipelines and to markets in the Midwest, Mid‐Atlantic and Northeast. The company maintains 7,800 miles of pipeline in six states including Ohio, West Virginia, Pennsylvania, New York, Maryland, and Virginia. Dominion stores and transports large quantities of natural gas for large customers, such as major utilities and power plants.
Columbia Gas Transmission transports an average of about 3 billion cubic feet per day of natural gas through a 12,750‐mile pipeline network serving hundreds of communities in about a dozen states. Customers range from local gas distribution companies, to energy marketers, electric power generating facilities and hundreds of industrial and commercial end users. Columbia Transmission also owns and operates one of North America’s largest underground natural gas storage systems. Using depleted natural gas production reservoirs deep below ground, the company has the ability to safely store gas when demand is low so it can be made available to customers during times of peak usage.