THE MONTHLY MAGAZINE OF THE AMERICAN GAS ASSOCIATION MARCH 2015 AMERICANGAS

WILL A SMALL U.S. CITY BE THE FIRST TO SOLVE THE WORLDWIDE PROBLEM OF ENERGY EFFICIENCY? 28

ARE YOU USING SOCIAL MEDIA THE RIGHT WAY? 34

‘IT ALL COMES DOWN TO BALANCE’: A CONVERSATION WITH SENATOR AND ENERGY LEADER Is Your System Standing Up to EXTREME CONDITIONS?

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AMERICANGAS VOLUMEAMERICAN 97 NUMBER GAS 2 MARCH 2015

FEATURES

Cover Story 20 “It All Comes Down to Balance” From growing up in Alaska to her energy policies, Republican Senator Lisa Murkowski shares what will guide her in her new role as chair of the U.S. Senate Committee on Energy and Natural Resources.

Feature 28 A Race for the Prize BY ADAM FOLK Over the next two years, communities across the U.S. will work with local distribution companies to improve energy efficiency as they compete for the Georgetown University Energy Prize. 20

PIPELINE STATE WATCH BURNER TIPS

Plugged In 5 Industry 7, 9 Hawaii 15 Social Media 34 Executives aren’t worried about Compressed gas liquid could The power of a simple thank-you is natural gas or oil supplies in U.S.; multiplied when you factor in social Digest 6 increase the reliability of the state’s Bidirectional pipeline capacity is media, says E Source’s Kim Burke. Schools cut costs by switching synthetic natural gas operations. on the upswing. Here’s how to use social media to to natural gas; Argentina boosts Colorado 16 offshore oil and natural gas produc- engage with customers, increase Ice cream and hydraulic fracturing their satisfaction and build tion; UGI brings Utica Shale gas to NGV 10 have more in common than you your brand. Pennsylvania; and more. Natural gas transportation fuel is still might think. trending up.

Fresh Ideas 6 Missouri 16 DEPARTMENTS Waste Management heats homes, By the Numbers 11 Kansas City is gung ho for natural businesses with repurposed President’s Message 2 When winter weather rolls in, more gas vehicles, and it’s not done yet. It’s our role to continue to remind landfill gas. households turn to natural gas for heat. policymakers at every level that New Jersey 17 direct use of natural gas has Customer Service 7, 8 People 12 Reducing a surcharge on the state’s positive environmental and efficiency 2014 Utility Customer Champions utility bills would help residential share a common factor; benefits. Places 13 and business customers. Pennsylvania PUC lowers barriers Jobs 32 to LDC expansion. North Carolina 18 State-supported grants are Advertisers’ Index 35 cleaning up polluted air in metropolitan areas. Making a Difference 36 A PG&E employee and veteran is West Virginia 18 honored to serve as a guardian for A five-year field study hopes to the Honor Flight program. uncover greater efficiencies in shale gas development.

COVER PHOTO AND ABOVE PROVIDED BY SEN. LISA MURKOWSKI (R-ALASKA)

MARCH 2015 AMERICAN GAS 1 It’s our role to continue to remind policymakers at every level that direct use of natural gas has positive environmental and efficiency benefits, thus reducing barriers and giving consumers, businesses and our nation a clear advantage.

PRESIDENT’S MESSAGE BY DAVE McCURDY

BUILDING CONSENSUS ON A NATIONAL LEVEL

oday, more than 177 million Americans use preserve its natural beauty. In these pages, she restates her belief natural gas to heat their homes, warm their water in an American energy sector that provides jobs and high wages and cook their food, and they understand the and allows her constituents to live, work and play in a state that comfort, affordability and reliability of this abun- her family has called home for three generations. dant domestic resource. We continue to remind Avid readers might recall that we featured Sen. Murkowski in policymakers at every level of the environmental the November 2011 issue of American Gas. She reflects now on and efficiency benefits of the direct use of natural what has changed since then, noting that “the role of natural gas gas. Whether it is the administration’s Clean within the nation’s energy policy has grown stronger than ever.” Power Plan, the U.S. Department of Energy’s In February 2013, the senator released the broad-ranging energy codes for appliances and buildings or an uneven playing field for policy blueprint Energy 20/20. She is quick to point out that this natural gas transportation, we are pushing to reduce barriers to document is meant to serve as the beginning of a conversation Topportunities where the benefits of natural gas can give consum- about how policy can be shaped in the next few years to make ers, businesses and our nation a clear advantage. energy “abundant, affordable, clean, diverse and secure.” That is a In this month’s issue of American Gas, we profile U.S. Sentor Lisa discussion that we are happy to be a part of. Murkowski from Alaska, one of the preeminent voices on Capitol After some difficult times for our nation, there is good news, Hill advocating for efficient and effective use of our nation’s natu- starting with a burgeoning energy sector driving an economy that ral resources. In the new Republican majority, Sen. Murkowski is has shown growth and resilience. Still, there are many areas where now chair of the Committee on Energy and Natural Resources. we need to invest assets and attention to ensure prosperity and We are glad to have this unique opportunity to hear her thoughts opportunity for future generations. u on the role that energy—specifically natural gas—plays in moving our nation forward. The production, transportation and delivery of energy was a part of my upbringing in Oklahoma. I think that is similar in Alaska, where energy is a way of life. That is reflected in Sen. Murkowski’s leadership as she advocates with great passion for constructive energy policies that benefit our entire country and President and CEO, [email protected]

2 AMERICAN GAS MARCH 2015 BelGas.net 800.727.5646

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MARCH 2015 AMERICAN GAS 3 THE MONTHLY MAGAZINE OF THE AMERICAN GAS ASSOCIATION AMERICANGAS

EDITORIAL DIRECTOR EXECUTIVE EDITOR ART DIRECTOR Tracy L. Burleson Kelly Crane Winkler Jordan Sitler [email protected] 202/824-7229 SENIOR EDITOR SUBSCRIBER CUSTOMER SERVICE Danielle Wong Moores 866/512-3111 CONTRIBUTING EDITORS fax: 845/267-3478 Michael Murray MANAGING EDITOR [email protected] Jennifer O’Shea Lori B. Racey ADVERTISING CIRCULATION MANAGER ASSISTANT MANAGING EDITOR Justin Wolfe Sherri R. Hamm Melanie Bracey The YGS Group [email protected] 717/430-2238 [email protected]

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BOARD OF DIRECTORS

OFFICERS DIRECTORS Scott L. Morris, Avista Corp. Michael Noone, SourceGas CHAIRMAN OF THE BOARD Craig L. Adams, PECO Energy, an Exelon Co. Morgan K. O’Brien, Peoples Natural Gas Terry D. McCallister, WGL Holdings Inc. Dennis V. Arriola, Southern California Gas Co. Scott M. Prochazka, CenterPoint Energy Robert F. Beard, UGI Utilities Inc. Ian Robertson, Algonquin Power & Utilities Corp. FIRST VICE CHAIRMAN Lawrence T. Borgard, Utilities, Integrys Energy Group John G. Russell, CMS Energy Corp. Ralph A. LaRossa, Public Service Electric & Gas Co. Carl L. Chapman, Vectren Corp. Suzanne Sitherwood, The Laclede Group Inc. Kim R. Cocklin, Atmos Energy Corp. Robert C. Skaggs, Jr., NiSource Inc. SECOND VICE CHAIRMAN Laurence M. Downes, New Jersey Resources Thomas E. Skains, Piedmont Natural Gas Co. Inc. Pierce H. Norton II, ONE Gas Inc. Jeffrey E. DuBois, South Jersey Gas Co. Ronald J. Tanski, National Fuel Gas Co. Gordon L. Gillette, Tampa Electric and Peoples Gas John W. Somerhalder II, AGL Resources IMMEDIATE PAST CHAIRMAN Kimberly J. Harris, Puget Sound Energy Gregg S. Kantor, NW Natural John P. Hester, Southwest Gas Corp. Glenn R. Jennings, Delta Natural Gas Co. Inc. ADVISORY PRESIDENT & CEO Ronald W. Jibson, Questar Corp. DIRECTORS Dave McCurdy, American Gas Association Christopher P. Johns, Pacific Gas and Electric Co. Patricia L. Kampling, Alliant Energy David J. Devine, Kinder Morgan Inc. GENERAL COUNSEL Thomas B. King, US, National Grid Julie A. Dill, Spectra Energy Corp. Kevin B. Belford, American Gas Association Steven E. Kurmas, DTE Energy Gordon L. Gillette, Tampa Electric and Peoples Gas Kent T. Larson, Xcel Energy Inc. Patricia L. Kampling, Alliant Energy CORPORATE SECRETARY James P. Laurito, Central Hudson Gas & Electric Corp. Rodney O. Powell, Northeast Utilities Gary W. Gardner, American Gas Association Diane Leopold, Dominion Energy William C. Stephens, ATCO Gas Richard J. Mark, Ameren Ronald J. Tanski, National Fuel Gas Co. CHIEF FINANCIAL & ADMINISTRATIVE OFFICER Kevin Marsh, SCANA Craig E. White, Philadelphia Gas Works Kevin M. Hardardt, American Gas Association John McAvoy, Consolidated Edison Inc. Michael P. McMasters, Chesapeake Utilities Corp.

The American Gas Association, founded in 1918, represents more than 200 local American Gas provides natural gas industry professionals with the information they need ANNUAL SUBSCRIPTION: $59 domestic (United States), $110 foreign. Single copies, energy companies that deliver clean natural to enhance their effectiveness and that of their companies by publishing leading-edge $7.50 each domestic, $12.50 each foreign. Periodicals postage paid at Washington, reports on the industry and on American Gas Association activities that offer value to D.C. and at additional mailing offices. gas throughout the United States. More than its members. POSTMASTER: Send address changes to American Gas, P.O. Box 317, Congers, NY 72 million U.S. residential, commercial and American Gas (ISSN 1043-0652) is published monthly (except for bimonthly August/ 10920-0317. industrial customers use natural gas; 94 September and December/January issues) by the American Gas Association, 400 N. REPRINTS: For high-quality reprints of articles to use in your education, promotional or sales percent—more than 68 million customers— Capitol St., N.W., 4th Floor, Washington, D.C. 20001. Phone numbers: advertising, efforts, including electronic reprints, contact Cindy Eyler at Sheridan Reprints at 717/632- 717/430-2218; editorial, 717/430-2397; circulation, 866/512-3111; fax, receive their gas from AGA members. Natural 3535, x8008 or [email protected]. ©2015 American Gas Association. gas meets almost one-fourth of the United 845/267-3478. Statements of fact and opinion herein are the responsibility of the authors and advertisers alone and do not imply an opinion or endorsement on the part All rights reserved. Reproduction in whole or part without written permission is prohibited. States’ energy needs. Visit us at www.aga.org. of the American Gas Association.

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4 AMERICAN GAS MARCH 2015 IN THIS SECTION Trust leads to higher customer service ratings 7 Reducing barriers to LDC expansion 8 Bidirectional pipeline capacity is on the upswing 9

The ALINA leak-detection software finds leaks without costly fiber-optics or the AMERICAN GAS hassle of digging up miles of pipeline.

PLUGGED IN New software to detect pipeline leaks pays more software point of view?’ It’s much more economi- attention to pressure flow than previous software cal because you don’t have to lay something along models, potentially preventing serious explosions the pipeline; you just have to look at your meters,” and saving the industry millions of dollars. Valtinson told American Gas. “We take the data from the pressure and flow Along with former University of Oklahoma meters and put it through a software statistical engineering professor Miguel Bagajewicz, who spe- model we developed to compare it to known cializes in instrumentation and data reconciliation, thresholds for leaks. From that information, you Valtinson researched, developed and tested the can know whether there is a leak or there is not a software model, then reported on it in a recent issue leak,” explained Gary Valtinson, a process design of Industrial & Engineering Chemistry Research. Ac- engineer in Norman, Oklahoma, and a recent cording to their data, the technique detected small graduate of the University of Oklahoma. Previ- leaks and reduced errors from 21 percent to ous software models have focused on flow and 3 percent when compared with existing software. have not accurately measured pressure drops in “It’s pretty exciting. Our hopes are to get it pipelines, which has led to errors, he said. into the industry,” Valtinson said. “Your best equipment to detect leaks is The software-based method, called ALINA, hardware—fiber-optic cables—but those are very is available through OK-Solutions (www.ok- expensive. For pipelines that are already in place, solutions.org) and can be used as an Internet-based it requires digging them up to attach the cables. service or as an in-house installed software. We thought, ‘What if we looked at it from a —Carolyn Kimmel

MARCH 2015 AMERICAN GAS 5 FRESH IDEAS treated and then injected into the Ameren Illinois pipeline rather than burned in a flare onsite,” Paul A New Day Pabor, vice president of renewable energy at Waste AMERICAN GAS Management, told American Gas. “That makes this Waste Management heats homes, new facility something to celebrate from both an businesses with repurposed landfill gas environmental and a business perspective.” An existing Milam Landfill-Gas-to-Energy DIGEST facility produces 2.4 megawatts of renewable t’s a new day—a new renewable day—for energy. The output from this power plant is The New Stanton toll plaza is now landfill gas processed at the Renewable Natural now directly connected to the new Renewable the first of 17 plazas on the IGas Facility operated by Texas-based Waste Natural Gas Facility, providing the power needed Pennsylvania Turnpike to Management at its Milam Landfill in Fairmont to run the new facility, the company said. offer compressed natural City, Illinois. Waste Management says it anticipates a 60 per- gas for passenger and commer- According to Waste Management, the facility, cent reduction in emissions of carbon monoxide, cial vehicles. The Sunoco-brand which was undergoing the commissioning process nitrogen oxides and particulate matter because the dispensers are the first natural in December, creates pipeline-ready natural gas from gas is treated rather than burned onsite. gas offering in Pennsylvania since the landfill gas produced at Milam, which can then The new $19 million facility was partially the 1990s, according to officials. be injected into the Ameren Illinois pipeline for uses funded by a $2.4 million grant from the Illinois Honda is the only company mak- such as heat for homes or fuel for trucks and other Department of Commerce and Economic ing passenger vehicles that utilize equipment that run on compressed natural gas. Opportunity and the Illinois Energy Office. CNG, but others will soon follow The Milam Renewable Natural Gas Facility is Officials at Ameren Illinois said the collabo- suit, said Rick Price, executive designed to process about 3,500 standard cubic ration with Waste Management on the renew- director of Pittsburgh Region Clean feet per minute of incoming landfill gas—or as able gas facility fit with its own mission. Cities. Businesses are the most much gas as it takes to fuel about 200 Waste “Operating in an environmentally responsible prevalent users of CNG—espe- Management CNG collection trucks each day, manner is one of Ameren Illinois’ core values and cially for transit buses and large company officials said. it’s important to our customers,” said Richard J. trucks—due to its economic and “The Milam Renewable Natural Gas facility Mark, president and CEO of Ameren Illinois. environmental benefits. will reduce landfill air emissions as the landfill gas is Waste Management also operates two other

United School District near Johnstown in western Pennsylva- nia is looking to cut costs by Waste Management’s CNG vehicle is in front switching to natural gas. The of Milam’s renewable natural gas facility in district would save approximately Fairmont City, Illinois. $225,000 a year on fuel by switch- ing from oil to natural gas, accord- ing to Dave Kramer, an account executive with Schneider Electric. Current gas lines would need to be extended about two miles to reach the district at a cost of about $227,000 in addition to fees for permits. Kramer estimated it could take more than a year to complete the permitting and construction to connect the school district, but after two years United should see a return on the investment.

YPF, a state-run energy company in Argentina, and Chile’s state-owned company ENAP have agreed to PHOTO PROVIDED BY WASTE MANAGEMENT PHOTO PROVIDED BY WASTE

6 AMERICAN GAS MARCH 2015 DIGEST plants that convert landfill gas to natural gas in is perceived and strengthen utility-customer jointly invest about $200 Ohio and California, where the company collabo- relationships, according to Market Strategies. million to boost offshore oil rated on the world’s largest plant to convert landfill Notably, by region, Oberle observed: and natural gas production gas to ultra-low-carbon liquefied natural gas. • East: New Jersey Natural Gas stands out in southern Argentina. The goal on how it presents its service options as is to ramp up gas output from bundles that focus on true benefits. 2.4 million cubic meters/d to 4 CUSTOMER SERVICE • Midwest: CenterPoint Energy-Midwest million over the next three years stands out as a leader in the utility industry and increase the output of associ- in offering value-added home services and ated liquids from 5,000 b/d to Whom Do You Trust? products that date back to its days as 7,000 b/d, according to YPF. The 2014 Utility Customer Champions share Minnegasco. partnership allows the companies a common factor • South: PSNC Energy is rated the most to share financing and accelerate credible communicator in the utility this expansion. The project will be ore than 37,000 residential natural gas industry—electric or gas. carried out at Magallanes, a block and electric customers cast their votes for • West: NW Natural posts the highest envi- in the South Atlantic off the coast of Mthe 2014 Utility Customer Champions, ronmental champion score of any natural Tierra del Fuego, the southernmost which were named by Cogent Reports, a division gas utility. province of Argentina. of Market Strategies International. The winners are industry leaders in building Kansas City-based CorEnergy customer trust, delivering excellent service and INDUSTRY Infrastructure Trust Inc. has ac- offering extra products and services that make con- quired a natural gas pipe- sumers feel they were getting more for their money. line that supplies Laclede All 48 utilities named Customer Champions— Clear Skies Ahead Gas Co., which serves the 19 gas utilities, 19 electric utilities and 10 com- Industry executives: No worries for natu- St. Louis area, and Ameren bination utility providers—received Engaged ral gas or oil supplies in U.S. Missouri, which has custom- Customer Relationship index scores of at least ers in eastern and central 710 out of a possible 1,000 points. The composite Missouri. The pipeline, formerly score takes into account separate measures for here will be plenty of natural gas to meet owned by St. Peters-based MoGas operational satisfaction, product experience and the country’s needs, and the U.S. will likely Pipeline LLC, is 263 miles long brand trust. Tbe self-sufficient in oil within the next and cost CorEnergy $125 million. Trust, as you might guess, is paramount to decade, according to the responses of industry It runs from northeast Missouri customers. Interestingly, it wasn’t enough to be executives polled by consulting firm Deloitte in and extends into western Illinois excellent at delivering the product that consum- its 2014 Oil & Gas Survey. and mid-Missouri. At press time, ers had paid for, the process revealed. Responses were overwhelmingly positive on CorEnergy planned to issue 13 “Our research finds that 53 percent of rat- a range of topics included in the survey, such as million shares of common stock to ings utility customers provide on operational expectations for energy self-sufficiency, price and partially finance the sale. satisfaction are influenced by how highly they industry profitability, capital outlays and mergers rate their utility on brand trust. Therefore, and acquisition activity, regulatory issues and the Blu Liquefied Natural Gas, a brand trust becomes as important to manage broadening of the North American Energy Renais- company that supplies the resource as service metrics,” Chris Oberle, author of the sance. The 252 professionals surveyed by Deloitte to Nampa, , has formed report, told American Gas. “Customers lacking were in a managerial or similar role and had an aver- a campaign to recognize brand trust do not rate their gas utility high age of 21 years’ experience in the industry. southern Idaho farmers even when they have accurate bills, no service The majority of those surveyed said they who use natural gas, calling interruptions and no safety issues. In fact, believe the U.S. energy situation has improved in them leaders of a “revolution.” customers without service issues still score 300 the last five years, and four out of 10 executives The Treasure Valley Clean Cities points lower than the utility industry average if said the energy situation is much better than five Coalition, Lt. Gov. Brad Little and they lack brand trust.” years ago. a Blu representative all met at the The Utility Trusted Brand & Customer Ninety percent of respondents believe that Blu-owned station to acknowledge Engagement™ study by Cogent Reports is a new rising domestic production will provide enough farmers and fleet operators who industry-leading body of research that enables affordable natural gas supply for new demand made the switch to natural gas. gas and electric utilities to benchmark perfor- sources such as power generation, the chemicals “McNabb Farms here in Idaho, mance, target improvements on how their brand industry, the manufacturing sector, a growing Continued on page 8

MARCH 2015 AMERICAN GAS 7 DIGEST

Continued from page 7 Columbia Gas joins a growing number of utilities as well as Funk Farms and RTTI, offering customers the option of paying for line these fleets have really led the extensions in their monthly bills instead of a large AMERICAN GAS charge and taken a bit of a risk upfront payment. and it’s paid off for them,” said Zachary Wester of Transfuel Blu LNG.

“Benefits of Natural Gas Produc- tion and Exports for U.S. Small Businesses,” a November 2014 study conducted by the Small Business and Entrepreneurship Council has discovered that small and midsize energy companies are growing at a faster rate than the rest of the economy. From 2005 to 2012, when the U.S. employ- ment market lost 378,000 jobs, the energy companies––including the gas extraction, wells, opera- tions, pipeline construction and manufacturing sectors––gained 293,000 jobs. While other small businesses during this time frame struggled, the study concluded that small businesses in the energy sectors grew between 4.9 and 31.3 percent. The SBE Coun- number of natural gas-powered vehicles and CUSTOMER SERVICE cil is optimistic that these numbers export markets. will continue to climb, thanks in Perhaps one of the biggest revelations of the part to expansion of American survey came in the share of respondents who said Pay As You Go? LNG exports. they believe the U.S. has achieved energy security, which jumped from 12 percent in 2012 to nearly PUC lowers barriers to LDC expansion Danville Public Schools in 40 percent in the current survey. Danville, Virginia, is seeking al- The study showed an attitude of contin- Columbia Gas of Pennsylvania Inc. pilot ternate bus fueling options ued enthusiasm for the potential of U.S. shale. program approved by the Pennsylvania in the form of natural gas Sixty-six percent of respondents believe that A Public Utility Commission will provide a to save on next year’s budget. technological advancements in shale extraction new way to bring natural gas service to those who Interim Superintendent Kathy have improved the economics of shale. Some request it. Osborne said the school district 44 percent point to the smaller environmental “Many potential customers will have an is considering partnering with footprint of shale as a significant improvement, option to pay for their line extension over a period CNG Technologies to switch from while 39 percent believe freshwater recycling has of 20 years rather than the upfront payment that diesel fuel to natural gas. Osborne improved, according to Deloitte. Columbia Gas has historically been required to says the district was influenced to Deloitte officials say the 2014 survey’s marked charge,” said Mark Kempic, president of Colum- consider the switch by the success sense of optimism might need to be tempered a bia Gas of Pennsylvania. “For example, a customer of other school districts and local bit, however, by events that took place after the paying the maximum monthly rate of $35 under communities that work with CNG, October polling of executives, including an almost the new tariff would have been required to provide including Washington, D.C., 15 percent drop in global prices for crude oil, the an upfront payment of more than $4,000 under which operates close to 500 natu- Republican sweep of midterm elections and a ban the previous tariff.” ral gas buses. The school district is on hydraulic fracturing in Denton, Texas. Since the PUC approved Columbia Gas of

8 AMERICAN GAS MARCH 2015 DIGEST

Pennsylvania’s New Area Service program on Columbia Gas proposed the New Area Ser- optimistic that a switch to natural Oct. 23, Pennsylvania residents in the company’s vice program in an effort to make natural gas ser- gas will shrink its $2.2 million service territory have begun to explore this new vice more accessible to Pennsylvanians not cur- transportation budget. option to pay for the extension of pipelines to rently served by natural gas energy, Bedell said. access natural gas, Kempic said. In many cases, the economic analysis shows that Borton-Lawson Engineering in “The commission’s initiative in approving this a large upfront payment is needed for Columbia Wilkes-Barre, Pennsylvania, is on program furthers the goal of making natural gas Gas to extend its main lines, which can deter a mission to save gas compa- more readily available to residents of Pennsylvania, customers from choosing natural gas service. nies time and money and the second-largest producer of natural gas in the This is particularly true when the customer is a simplify the assembling of country,” he said. “Natural gas can be as much as significant distance from the company’s existing well pad equipment. The firm 40 percent less expensive than other home energy facilities, he said. designed a 3-D computer model to choices, so now is a great time to be a natural Columbia’s program joins other similar proj- show natural gas contractors how gas customer.” ects launched by utilities such as Pennsylvania’s well pieces fit together. According In 2013, Columbia Gas had 77 projects for UGI Utilities Inc. and Southern Connecticut to B.J. Cline of Cabot Oil and Gas, gas service that did not go forward, all of which Gas Co., Connecticut Natural Gas Corp. and this model shortens the assembly had upfront deposits due, according to Russell Yankee Gas in Connecticut. time by as much as 10 days, Bedell, manager, communications and commu- which saves gas companies close nity relations for Columbia Gas of Pennsylvania to $1 million. It also allows resi- and Maryland. The costs to add new service INDUSTRY dents to reap the benefits of natural can vary due to a number of factors, including gas heating that much faster. Cline the diameter of pipe needed to extend facilities, said a pad in Springville near distance from facilities and geographical nature Two is Better Than One Scranton “alone can pretty much of the area involved. Bidirectional pipeline capacity is on give gas for tens of thousands of the upswing families, [and] for any days we get extra, it’s that many more houses we can heat.” purred by underutilized pipelines and grow- ing natural gas production in Pennsylvania, Utica Shale natural gas is traveling SWest Virginia and Ohio, the natural gas a long way from its play in eastern pipeline industry plans to modify its systems Ohio to fuel homes in north-central to allow bidirectional flow to move up to 8.3 Pennsylvania. UGI Utilities Inc. billion cubic feet per day of natural gas out of connected its distribution the Northeast, according to the U.S. Energy pipeline to a Utica well in Information Administration. Tioga County to make what The industry plans to expand existing systems UGI refers to as a “historic and build new systems to transport natural gas direct interconnection.” This produced in the Northeast to consuming markets partnership will provide natural gas outside the region. In addition to bidirectional to UGI customers in the Tioga area, pipeline projects, the industry plans to build 35 which includes more than 50,000 Bcf/d of additional capacity to support the growth homes. Many homes in the area of natural gas production in the Northeast. are switching to natural gas from ANR Pipeline Co., Tennessee Gas Pipeline oil or propane. This increase in Co., Texas Eastern Transmission and Transcon- demand for natural gas makes the tinental Gas Pipe Line Co. plan to send natural connection that much more timely. gas from the Northeast to the Gulf Coast because of the potential for industrial demand and LNG Florida Power & Light Company exports. These projects total 5.5 Bcf/d of flow ca- is joining a growing number of pacity. In addition, the Rockies Express Pipeline’s utilities looking at investing in shale partial bidirectional project, with 2.5 Bcf/d of gas reserves. It has proposed a Bidirectional flow pipelines are moving capacity, will flow Marcellus natural gas to mar- partnership with PetroQuest Energy natural gas to where it’s most needed. kets in Chicago, Detroit and the Gulf Coast. Inc., a natural gas production The Iroquois Gas Pipeline’s bidirectional project Continued on page 10

MARCH 2015 AMERICAN GAS 9 DIGEST

Continued from page 9 (0.3 Bcf/d of capacity) will deliver natural gas Sales of natural gas-powered trucks company based in Louisiana with from the Marcellus to Canada. Iroquois will re- continue to grow. operations also in Oklahoma, ceive gas from the Dominion, Constitution (ex- AMERICAN GAS Texas and other Gulf Coast loca- pected service in 2016) and Algonquin pipelines. tions. The partnership would help The EIA noted that modifying existing lower energy costs for FPL pipelines to enable bidirectional flow requires customers over the course of the significantly less capital investment, fewer regula- 50-year project. FPL spokeswoman tory permits and lower construction and labor Sarah Gatewood suggested the costs, while resulting in fewer environmental project will save customers $50 impacts. The move to bidirectional can be done million to $100 million. Gatewood quickly to respond to new market dynamics that says FPL is seeking additional simi- will improve pipeline utilization rates. lar opportunities to save customers Even though the Northeast has seen increased money in the long run. “That is natural gas production and new infrastructure, part of why we are doing this, to more work needs to be done, particularly to do what we can to protect custom- ensure better access during peak demand days, ers’ interests and keep their bills according to the EIA. Algonquin Gas Transmis- and fuel costs as low and stable as sion and Tennessee Gas Pipeline, which supply possible,” she said. Other utilities most of the natural gas to New England, plan to turning to shale gas include NW increase their capacities there by 4.1 Bcf/d by the Natural, which has invested in gas end of 2018, which should significantly increase reserves since 2011, along with natural gas supply in New England. Southern Co., Xcel Energy Inc. and Duke Energy Corp. NGV NW Natural launched a social media campaign to celebrate its announcement that it Survey Says is now serving 700,000 custom- Natural gas transportation fuel is still ers in Oregon and southwest trending up Washington. For seven days, it proportional to the outsized growth of the overall tweeted a daily customer milestone heavy truck market. using the hashtag #Celebrating- ales of natural gas-powered trucks are In the study, trucking industry leaders— 700KCustomers. Twitter users continuing to grow steadily and saw a 27 including manufacturers, suppliers, fleet opera- who retweeted the milestones Spercent increase in units sold from 2013 to tors, the fueling industry and other companies were entered into a daily draw- 2014, according to updated research on natural interested in the direction of natural gas as a com- ing for a gift card. The company gas transportation fuel trends in the heavy truck mercial vehicle fuel—were asked to reflect on the enjoyed more than 600 retweets market released by ACT Research. long-term future of natural gas as a vehicle fuel. as it shared information about key However, usage predictions have fallen from According to Vieth, a more cooperative dates in NW Natural history. initial expectations, according to Ken Vieth, investment strategy between shippers and truck- ACT Research’s senior partner and general man- ers is needed. “The chicken-and-egg issue of ager. “There was a lot of hype and enthusiasm in infrastructure is being solved, albeit slowly, but 2010,” he said. the price of natural gas-powered equipment still One issue that still remains to be addressed needs to be addressed, and this won’t be solved is that thousands more natural gas stations are overnight. That’s why we call it an evolution and needed along traveled routes so trucks can easily not a revolution,” he said. refuel. “You can’t afford to have to drive out of ACT estimates that by 2025 natural gas- your way to refuel or it will not be economically powered trucks should make up 23 percent of viable,” he said. units sold. “That’s a large quantity that will be Still, the ACT report found that in 2014 shared by those with an understanding of tomor- natural gas-powered trucks continued to grow row’s truck transportation needs and plans to get in unit sales and production, though at a rate there,” Vieth said.

10 AMERICAN GAS MARCH 2015 BY THE NUMBERS

When winter weather rolls in, many of us turn to natural gas. According to the U.S. Energy Information Administration, about one-half of U.S. households use natural gas as their primary heating fuel, with natural gas as the dominant heating fuel in colder parts of the country.

GAS HEATS THE HOMES (AND BUSINESSES) UP NORTH

Natural gas consumption varies widely by region of the NORTHEAST country, with the majority of NATURAL GAS MIDEST ELECTRICITY households that heat with EST natural gas located in the HEATING OIL/EROSENE PROPANE Midwest and Northeast. The OOD East North Central Census OTHER/NO HEATING Division (Wisconsin, Michigan, Illinois, Indiana U.S. TOTAL and Ohio) is the largest MILLION HOMES residential and commercial SOUTH natural gas-consuming division in the country, making up 28 percent of all residen- tial consumption and 24 percent of commercial consumption in 2013.

CHANGE IN DAILY NATURAL GAS CONSUMPTION PER DAILY INCREASE OF ONE HEATING DEGREE DAY

Because the East North Central Census Division has the largest number of households heating with natural gas, its collective response to changes in weather (as measured by heating degree days) is greater than in any other region. The response to changes in heating degree days in the South Atlantic Census Division (which has about 6 million homes that heat primarily with natural gas) is similar to that of the Pacific and Mid-Atlantic divisions (where 10.2 and 9.4 million households, respectively, heat with natural gas). This response may be attributable to natural gas used as a secondary heat source, such as in natural gas fireplaces or as the supplemental heat source to air-source heat pumps. When temperatures drop below a certain threshold (usually around freezing temperatures), heat pumps rely on a supplemental heat source.

RESIDENTIAL COMMERCIAL

BCF PER HEATING DEGREE DAY

. . . . .

Source: U.S. Energy Information Administration

MARCH 2015 AMERICAN GAS 11 PEOPLE

Northeast Utilities, which changed its name Selim Bingol is the new senior vice president and to Eversource Energy in February, appointed chief communications officer at Duke Energy AMERICAN GAS William Akley as president of its natural gas Corp. Bingol most recently served as senior vice division, which includes Yankee Gas and NSTAR president at General Motors. Gas. Akley previously was senior vice president of National Grid’s U.S. gas operations. MDU Resources Group Inc. has named Jason L. Akley Bingol Vollmer to the position of treasurer and direc- NiSource President and CEO Robert C. Skaggs tor of cash and risk management, taking over for Jr. will become CEO of the company’s spin-off Douglass A. Mahowald, who is retiring. business, Columbia Pipeline Group Inc. Joseph Hamrock, who is executive vice president and Xcel Energy Inc. has announced that David Sparby group CEO of NiSource’s gas distribution division, is retiring as president and CEO of Northern States will succeed Skaggs as CEO of NiSource. NiSource Power Co.-Minnesota and senior vice president Vollmer McDaniel Executive Vice President and Chief Financial Officer of Revenue Group. Christopher Clark has been Stephen P. Smith will take on the same roles at named as his successor and will report to Executive Columbia Pipeline, while Glen L. Kettering, who Vice President and Group President of Utilities is currently executive vice president and group CEO Marvin McDaniel, who takes over Sparby’s corpo- for Columbia Pipeline, is anticipated to take on the ratewide responsibilities as senior vice president of newly created position of president of Columbia Revenue Group. Pipeline. Other leadership changes include: Jim Medina Warr Stanley, executive vice president and group CEO Gas Transmission Systems Inc. has named Joe for Northern Indiana Public Service Co., assuming Medina managing director of transmission and the role of COO for NiSource; and Violet G. distribution compliance services. In addition, Sistovaris––currently NiSource senior vice president Roger Warr joins GTS as managing director of and chief information officer––becoming executive southern California. vice president for NIPSCO. The separation of the energy companies is planned for mid-2015.

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12 AMERICAN GAS MARCH 2015 PLACES MARCH JUNE JULY

16–18: Finance Committee 17–20: AGA/EEI Spring 1–2: Revenue Seminar, 19–21: AGA Annual Legal Meeting, Dallas, TX. Contact Accounting Conference, Chicago, IL. Contact Joe Martin, Forum, Carlsbad, CA. Contact Liliana Fonnoll, 202/824-7021, AGA Accounting Services 202/824-7255, [email protected] Theresa Thoman, 202/824-7072, [email protected] Committee/EEI Budgeting [email protected] & Financial Forecasting 10–12: AGA Taxation 17: Luncheon Presentation to Committee/EEI Corporate Committee Meeting, Austin, 20: AGA Risk Management Dallas Financial Community, Accounting Committee/EEI TX. Contact Joe Martin, 202/824- Committee Meeting, Dallas, TX. Contact Liliana Fonnoll, Property Accounting & Valu- 7255, [email protected] Nashville, TN. Contact Cindy John- 202/824-7021, [email protected] ation Committee Meeting, son, 202/824-7264, cjohnson@ Boston, MA. Contact Doug Allen, 15–16: EEI/AGA Labor & Em- aga.org 18–19: Transmission Pipeline 202/824-7261, [email protected] ployee Relations Conference, Workshop, San Diego, CA. Con- Charleston, SC. Contact Linda Nahin, AUGUST tact Erin Kurilla, 202/824-7328, 18–19: Operations Section 202/824-7012, [email protected] [email protected] Spring Committee Meetings, 17–19: AGA Accounting Prin- Grapevine, TX. Contact Debbie Ellis, 15–17: AGA/EEI Accounting ciples Committee Meeting, APRIL 202/824-7338, [email protected] Leadership Conference, Austin, Location TBD. Contact Joe Martin, TX. Contact Joe Martin, 202/824- 202/824-7255, [email protected] 6–9: EEI/AGA Customer 19–22: Operations Confer- 7255, [email protected] Service Conference and ence and Biennial Exhibition, OTHER EVENTS Expo, Washington, DC. Contact Grapevine, TX. Contact Debbie Ellis, 15–17: AGA/EEI Chief Audit Jim Linn, 202/824-7272, jlinn@ 202/824-7338, [email protected] Executives Conference, Austin, June 9–11: Summer Technol- aga.org TX. Contact Joe Martin, 202/824- ogy and Market Assessment 20–21: AGA/EEI Property 7255, [email protected] Forum, Energy Solutions Center, MAY Accounting and Depreciation Salt Lake City, UT. Leslie Auerbach, Training Seminar, Boston, MA. 15–19: AGA Executive 202-824-7152, lauerbach@ 17–19: Financial Forum, Contact Doug Allen, 202/824- Leadership Development escenter.org Palm Desert, CA. Contact Liliana 7261, [email protected] Program, Washington, DC. Fonnoll, 202/824-7021, lfonnoll@ Contact Lisa Davenport, 202-824- aga.org 7329, [email protected]

GAS TECHNOLOGY natural gas industry INSTITUTE EVENTS

APRIL 27–MAY 1 Measurement & Regulator TRAINING Station Design. Hampton Inn & Suites—Chicago Downtown, Chicago, IL. Susan Robertson, GTI, 847/768-0783; [email protected]; www. gastechnology.org/training

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JUNE 9–11 ECDA Inspection Tools. GTI Headquarters, Des Plaines, IL. Susan Robertson, GTI, 847/768-0783; [email protected]; www. gastechnology.org/training gastechnology.org/training

MARCH 2015 AMERICAN GAS 13 14 AMERICAN GAS MARCH 2015 HAWAII state watch COLORADO MISSOURI

NEW JERSEY

HAWAII NORTH CAROLINA

Fueled Hawaii WEST VIRGINIA Compressed gas liquid could increase the reliability of the state’s synthetic natural gas operations

HONOLULU—Hawaii could save billions of dollars through a patented new technique to ship com- pressed gas liquid to remote areas. The Texas-based SeaOne Maritime Corp. has spent the last 10 years developing its system, which cre- ates a solution of hydrocarbons by compressing natural gas with a solvent under specific temperatures and pressures, President and Chief Operating Officer Bruce Hall told American Gas. Hall said the system can deliver a full fuel, to include methane, propane and butane, as a single liquid cargo that is then regasified at its destination. He said it will cost half as much as other fuel options and is more environmentally friendly. Hawaii Gas is currently seeking additional proposals for delivering natural gas to the islands, which have no gas wells. Hawaii Gas started importing liquefied natural gas last April as a backup for its synthetic natural gas operations, increasing the reliability of its gas supply for its customers. It has a goal of replacing 30 percent of its current fuel supply. “We’re committed to lowering energy costs for Hawaii, and we see natural gas as playing a critical role in our state’s clean energy future,” said Alicia Moy, president and CEO of Hawaii Gas. SeaOne Maritime offered a proposal and has high hopes of being selected, Hall said. According to the company’s website, “SeaOne Maritime Corp.’s Compressed Gas Liquid system is the first major new approach to the monetization of natural gas and gas liquids from stranded and remote reserves since the inception of the liquefied natural gas industry almost 50 years ago.”—Monica von Dobeneck

Blue Hawaii lacks just one thing—its own natural gas wells.

MARCH 2015 AMERICAN GAS 15 state watch

COLORADO Chemistry. “This is the first published paper that identi- fies some of the organic [hydraulic fracturing] Household Safe chemicals going down the well that companies use,” said Michael Thurman, lead author of Ice cream and hydraulic fracturing have the paper and a co-founder of the Laboratory more in common than you might think for Environmental Mass Spectrometry in the university’s college of engineering and applied BOULDER—Organic chemicals used in hydrau- science. “We found chemicals in the samples we lic fracturing are no more toxic than those com- were running that most of us are putting down monly found in food and everyday household our drains at home.” products such as toothpaste or detergent, accord- The fluid used in hydraulic fracturing is ing to a study at the University of Colorado. largely composed of water and sand, but oil and A research team analyzed fluid from shale gas gas companies also add antibacterial agents, cor- sites in Colorado, Louisiana, Nevada, Pennsylva- rosion inhibitors and surfactants. The surfac- nia and Texas and published results in Analytical tants reduce the surface tension, allowing more oil and gas to be extracted from the porous rock underground. Results of the study are important because they give a picture of the possible toxicity of the fluid, and also because they can be used to determine whether suspected contamination of water supplies can be traced to a well site. Thurman and co-author Imma Ferrer are working to analyze more water samples col- lected from other wells as part of a larger study exploring the impact of natural gas develop- ment. Thurman said the study so far has shown that water pollution from surfactants in the fluid might not be as big a concern as previ- ously thought.

MISSOURI

A Very Green Place to Be

Kansas City is gung ho for NGVs, and it’s not done yet

KANSAS CITY—The Kansas City, Missouri, area has been racking up honors for its natural gas-powered vehicles. The city was selected as having the best gov- ernment-owned green fleet in the country during the Natural Gas Vehicles Conference & Expo in November. Then it was named North America’s premiere government fleet at the North American Green Fleet Forum in Sacramento, California. Also, the Lee’s Summit R-7 School District

16 AMERICAN GAS MARCH 2015 PHOTOS PROVIDED BY THE CITY OF KANSAS CITY, MO. PHOTOS PROVIDED BY THE CITY OF KANSAS CITY,

Kansas City, Missouri, is getting into NGV in a big in Kansas City was named the Outstanding NEW JERSEY way with vehicles in its municipal fleet, such as Compressed Natural Gas Fleet & Station Pro- vans (inset) and sweepers. gram by NGVAmerica for adding 106 natural gas-powered school buses to its fleet and opening Societal Benefit a fueling station last fall. In fact, the whole area seems to be getting in Reducing a surcharge on the state’s on the act. utility bills would help residential and The Kansas City Area Transportation Author- business customers ity opened a fueling station last summer that is expected to save up to $500,000 in fuel costs in TRENTON—Representatives of New Jersey 2015 and up to $4 million per year once the fleet consumers and large manufacturers alike are is fully converted over the next dozen years, ac- asking the state to rethink the “societal benefit” cording to the authority’s website. surcharge imposed on all gas and electric bills. Businesses are also joining in: For instance, The New Jersey Division of the Rate Counsel the area AT&T fleet employs natural gas and the Large Energy Users Coalition have been vehicles, and Questar Fueling opened a CNG urging regulators to reduce the surcharge that fueling station in Kansas City, Kansas, in the customers pay. The surcharge is meant to fund fall. A public CNG fueling station also opened clean energy projects and lower energy bills for in Kansas City, Missouri, in December. low-income consumers. It is also used to clean Kansas City, Missouri’s fleet manager, Sam up contaminated waste sites and former coal Swearngin, told American Gas that Kansas City’s gasification plants and to pay to decommission municipal government has long been a leader nuclear power plants. But according to a filing in the field since it started with 12 natural gas with the state Board of Public Utilities, the clean vehicles in 1997. The city now has 300 natural energy portion of the fund has been used to plug gas-fueled trucks, including dump trucks, and holes in the general fund budget in recent years. uses 620,000 gallons of CNG annually, which Stefanie Brand, director of the Division of is 26 percent of its total fuel. And it has helped the Rate Counsel, said the Office of Clean En- other fleets get their start. ergy should improve its budgeting process. “It’s The program relied on grants in its early a long-standing issue,” she told American Gas. years, but it is now economically viable on its “For many years, they have overshot, collecting own and is likely to save the city $1 million this more than the programs cost.” year, Swearngin said. He hopes to update the Brand said the function is an important one. municipal fueling station and replace more of the “Some of these programs are very good, they’re heavy-duty trucks with natural gas over time. very important, and we don’t want them to go “I appreciate the recognition from the away,” she said. However, she said the clean awards and I’m flattered, but we’re not done energy surcharge should not be diverted to the yet,” he said. state’s general fund.

MARCH 2015 AMERICAN GAS 17 state watch

The coalition is asking the Board of Public the grants are aimed at “reducing transportation- Utilities to cut the clean energy surcharge by related emissions in the 24 counties that do not $100 million a year in order to provide relief meet national air quality standards.” for companies and households. In 2013, the Greensboro, High Point and “The real problem is [the state is] not bud- Winston-Salem areas ranked as the 42nd most geting only what they can spend,” Brand said. polluted in the nation, according to a study by “The longer it goes on, the more people pay. the American Lung Association. The Charlotte, The economy is tight. The surcharge on top of Gastonia and Salisbury areas ranked 19th. the regular rates adds to the burden.” “The EPA is constantly pressuring us to She said the clean energy surcharge has reduce our greenhouse gas and carbon footprint, an important function, but that her group is and each ensuing year brings a new set of rules,” asking for better budgeting—“and I think they Paul Huffman, senior vice president at Epes, told have a desire to do that.” the Greensboro News & Record. “So we’re trying to The clean energy surcharge added a sig- learn about it to get ahead of the curve.” nificant cost to residential gas customers’ bills Anne Tazewell, transportation program man- in 2013, according to attorneys for the Large ager for the technology center, told the newspa- Energy Users Coalition. It has cost some of their per that changes at companies such as Epes can business members millions of dollars, they said. have a ripple effect. The project “is kind of like priming the pump and then having leaders like Epes step up,” she said. “Epes is a great candidate for us because they drive a lot of miles.” The grants are funded through the North Carolina Department of Transportation. According to information from the technol- ogy center’s website, use of CNG can reduce tailpipe carbon dioxide emissions by 10 percent or more compared with traditional fossil fuels. It also notes that it costs less than gasoline or diesel and is considered safer. CNG is helping residents of Greensboro, North Carolina, and surrounding areas breathe cleaner air. NORTH CAROLINA WEST VIRGINIA Take a Deep Breath State-supported grants are cleaning up Drilling Down polluted air in metropolitan areas A five-year field study hopes to uncover RALEIGH—North Carolina has been offer- greater efficiencies in shale gas develop- ing grants to companies and communities that ment, aid the environment want to convert their vehicles to compressed natural gas in an effort to show that sustainable MORGANTOWN—West Virginia University is energy reduces air pollution. joining with Ohio State University for a five-year The North Carolina Clean Energy Technology field study to help determine the best practices Center recently awarded Greensboro-based Epes in environmentally responsible shale gas develop- Transport System Inc. a $150,000 grant to pur- ment. According to WVU’s website, this will be chase five trucks fueled by compressed natural gas. “the first-ever long-term, comprehensive field Epes is the state’s largest trucking company, and study of a natural resource that has changed the it has promised to operate its natural gas vehicles country’s—and the world’s—energy supply.” only in the Greensboro and Charlotte areas because WVU geology professor Timothy Carr, those cities have struggled with poor air quality. director of the lab, told American Gas that the According to the technology center’s website, studies will lead to less expensive gas with less

18 AMERICAN GAS MARCH 2015 environmental impact. It will lead to better According to the U.S. Energy Information technologies and knowledge for greater ef- Administration, shale gas represented only 1 per- ficiencies while minimizing environmental im- cent of American natural gas production in 2000 plications from the time before drilling starts but will represent nearly half by 2035. through production. He said it could mean “The economic, national security and environ- more gas per well so fewer wells are required. mental benefits to shale gas development are signifi- The program will engage a team of geo- cant,” Carr said. “But that growth must be managed scientists, hydrologists, engineers, ecologists, in a responsible manner, which will require compre- social scientists and public health profession- hensive scientific data and measurement.” als to create and manage the Marcellus Shale Energy and Environment Laboratory in the Morgantown Industrial Park. The project is being funded through an $11 million grant from the U.S. Department of En- ergy. The site is operated by Northeast Natural Energy LLC, a Charleston-based private oil and gas company. The lab will also offer education and training to undergraduate and graduate students to address the complex technical, envi- ronmental and social issues surrounding energy development and production. Jared Ciferno, director of the U.S. Depart- ment of Energy’s National Energy Technology Laboratory, said the department is excited “to demonstrate cutting-edge science and advanced technologies to ensure the prudent develop- ment of the nation’s shale gas resources in an efficient and environmentally safe fashion.” Mike John, CEO of Northeast Natural Energy, said his company is participating because of “our desire to help improve science, enhance technology and expand understand- With new upcoming regulations, operators will be required to increase ing of the natural gas industry.” resources and budgets to support additional inspection, testing, piping Carr said Northeast Natural Energy has a replacement, and documentation of their pipeline system. Structural reputation of responsibly developing resources Integrity has an innovative and experienced team of integrity specialists to in an environmentally sensitive way. provide support. We are a leader in pipeline integrity and regulatory compliance.

WVU’s Marcellus Shale Energy and • Integrity Management Environment Laboratory will be located at a field site owned and operated • Corrosion Control by Northeast Natural Energy in the Morgantown Industrial Park. • NDE Inspection and Assessment

• Regulatory Compliance Support

877-474-7693 (877-4SI-POWER)

Scan the QR Code for more information www.structint.com/aga PHOTO COURTESY OF NORTHEAST NATURAL ENERGY NATURAL OF NORTHEAST PHOTO COURTESY

MARCH 2015 AMERICAN GAS 19 COVER STORY IT ALL COMES DOWN TO BALANCE From growing up in Alaska to her energy policies, Republican Senator Lisa Murkowski shares what will guide her in her new role as chair of the U.S. Senate Committee on Energy and Natural Resources.

roblem solver. Bipartisan coalition builder. prehensive, research-based energy policies and practices. To Energy advocate. ensure the ongoing place of natural gas as a clean, affordable Alaska U.S. Senator Lisa Murkowski has energy source, she strives to increase access to federal assets, built a reputation in public service for her streamline permitting, eliminate market barriers and ease pragmatic, fact-based approach to policy- regulatory burdens. making. With the emergence in 2015 of a It’s all part of her belief in Alaska as an energy hub and Republican majority in the U.S. Senate, she America as an energy innovator. Her love for Alaska’s rugged brings that approach to her new role as chair of the Com- beauty keeps her grounded in the imperative to preserve the Pmittee on Energy and Natural Resources. In this post, she is environment while responsibly cultivating natural re- poised to continue emphasizing the priorities that she has sources—including methane hydrates and untapped sources set all along for American energy—to, in her words: “Make on federal lands—to benefit all Americans and promote energy abundant, affordable, clean, diverse and secure.” energy independence. Here, she talks in depth to American Murkowski is a third-generation Alaskan whose roots in Gas about energy policies, the future of natural gas and her public service include the six years her father, former U.S. Alaskan heritage. Sen. , chaired the Committee on Energy and Natural Resources. While using the power of energy AG: Congratulations! You are now chair of the U.S. Sen- policy to benefit Alaskans and all Americans is a top priority, ate Committee on Energy and Natural Resources. We’re she also advocates for health, Alaska Natives, education, pleased that someone with your deep knowledge of energy military and veterans’ affairs and infrastructure development issues and reputation for working toward bipartisan solu- in her native state. tions is heading this critical panel. What are your priori- Murkowski’s groundbreaking Energy 20/20 blueprint, ties in this post? released in 2013, showcased her deep knowledge of the full Murkowski: It sounds simple, but I really do believe it: energy spectrum, including the role of natural gas. Paired Energy is good. My commitment moving forward is to with a series of issue-specific white papers, the blueprint is advance good, constructive energy policy that benefits our a living document meant to guide development of com- entire country.

20 AMERICAN GAS MARCH 2015 “MY COMMITMENT MOVING FORWARD IS TO ADVANCE GOOD, CONSTRUCTIVE ENERGY POLICY THAT BENEFITS OUR ENTIRE COUNTRY.”

—U.S. Senator Lisa Murkowski, R–Alaska

MARCH 2015 AMERICAN GAS 21 COVER STORY

ABOUT REPUBLICAN AG: Since we last talked in November Murkowski: The most reputable analyses— 2011, the role of natural gas within the whether in the government or private sec- SEN. LISA MURKOWSKI, nation’s energy policy has grown stronger tor—suggest that upward pressure on prices CHAIR OF THE SENATE than ever. However, there are still barriers, will be minimal. We are talking about COMMITTEE ON such as Section 433 of the 2007 Energy cents, not dollars, per million cubic feet. Act, which bans fossil fuels in federal The gains in jobs, the benefits to our bal- ENERGY AND buildings by 2030. How do you plan to ance of trade and the signals all of this will NATURAL continue assuring the place of natural gas send to producers and to the world are why RESOURCES as a key player in energy security, reliabil- I support expanding our nation’s liquefac- ity and environmental stewardship? tion capacity. • The first Murkowski: It’s true that we need to focus on barriers. Section 433 is one of AG: The natural gas industry is commit- Alaskan- them. I am also concerned that natu- ted to energy efficiency as a key plank born senator. ral gas production on federal lands has in the appropriate use of our nation’s plummeted while private and state lands resources. What are the prospects for fed- • Born in have seen record-setting increases, so that’s eral energy-efficiency incentives to further Ketchikan and something we will look at closely. On encourage research and development of raised in Wrangell, Juneau, the positive side, higher production has energy-efficient homes, businesses and Fairbanks and Anchorage. enabled greater exports, and greater exports appliances? will send positive signals to producers. Murkowski: I agree that efficiency has a key • S erves on the role to play in making our energy supply Senate Committee on AG: In February 2013, your broad- abundant, affordable, clean, diverse and ranging energy policy blueprint, Energy secure. That’s why I supported the Shaheen- Appropriations, where she 20/20, was meant to kick-start a national Portman bill last Congress. I would like to is the ranking Republican dialogue about energy policies. Recom- see industry take the lead on developing of the Interior, Environment mendations included regulatory reform, new technologies, and for the government’s and Related Agencies effective use of public lands and selling efforts to either be consensus-based or vol- subcommittee. She is also offshore oil and gas leases on the East untary in nature. As we continue to look a member of the Senate Coast and eastern Gulf of Mexico. What is at different ways to encourage efficiency, the status of the blueprint, and how much I think we have also reached a point where Committee on Health, of it will guide your work as Energy and our current policies—through the Depart- Education, Labor and Natural Resources chair? ment of Energy, through the tax code and Pensions and a senior Murkowski: The blueprint remains just elsewhere—should be carefully reviewed to member of the Senate that: a blueprint. And we didn’t just put make sure they, themselves, are efficient. Committee on Indian Affairs. Energy 20/20 out there and stop, either. We have released five follow-up white papers— AG: Are methane hydrates—the vast • Earned a B.A. in econom- on the global gas trade, U.S. energy exports, supply of methane natural gas locked in ics from Georgetown Uni- electric reliability, the energy-water nexus and icelike structures under the ground and energy insecurity—and several staff reports sea floor—the next frontier in our quest versity in 1980 and a law that lay the intellectual foundations for my for energy security? How do you propose degree from Willamette legislative agenda in 2015. All of them are to accelerate our ability to access these University in 1985. available on our committee’s website, www. resources? energy.senate.gov, and I’d encourage anyone Murkowski: Methane hydrates can absolute- • Served three terms in the who is interested to give them a look. ly be a major fuel source for us in the future. Alaska State House of Technical hurdles remain, but research indi- Representatives and was AG: Energy 20/20 called for observing the cates that there are sufficient resources under elected to a full six-year liquefied natural gas export process and, the Gulf of Mexico and in Alaska to handle if necessary, updating the rules to provide all of America’s energy needs for 1,000 years. U.S. Senate term in 2004. certainty to producers and export-facility We need to get there, but the Obama admin- investors. At the same time, some are istration has been too slow to allow funding concerned that bumping up LNG exports for the needed follow-up research. I sponsored could squeeze domestic prices higher. the most recent Methane Hydrate Research What are your thoughts on this? Act and continue to press the Department of

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26th World Gas Conference | 1-5 June 2015 | Paris, France 26th World Gas Conference | 1-5 June 2015 | Paris, France REG2I6SthT WEorRld GAasS C oAnfe rDenEceL|E1G-5A JuTnEe 2 0A15ND| P AariCs, FCraEncSe S RKENROGWEILGSEDITSGETR|EIRD AE AASSS |A AG L DODBEAELLL MEEAGRKAAETTTSEE| AKAENYN DED CAI SACIOCCN MECASEKSESRSS KNOKWNOLEWDLGEDEGE| I|DIEDAESAS| |GGLLOOBBAALL MMAARKEETTSS || KKEEY YD DECEICSIOSNIO MN AMKEARKSERS

500 DISTINGUISHED 4,000 SENIOR LEVEL 350+ GLOBAL EXHIBITORS THE MEETING PLACE FOR INDUSTRY SPEAKERS GLOBAL DELEGATES & THOUSANDS OF VISITORS THE GLOBAL GAS INDUSTRY 500 DISTINGUISHED 4,000 SENIOR LEVEL 350+ GLOBAL EXHIBITORS THE MEETING PLACE FOR 500 DISINTDINUSGTURISY HSEPDEAKERS 4,00G0LO SBEANLI ODERL LEEGVATEELS 3&5 T0H+OU GSLAONBDASL O EF XVHISIIBTOITROSRS THET GHLEO BMALE GEATSIN INGD PUSLTARCYE FOR INDUSTRY SPEAKERS GLOBAL DELEGATES & THOUSANDS OF VISITORS THE GLOBAL GAS INDUSTRY

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HOST SPONSORS PRINCIPAL SPONSORS GLOBAL SPONSORS PLATINUM SPONSOR

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DIAMOND GOLD SPONSORS SILVER BRONZE SPONSORS ASSOCIATE SPONSOR SPONSOR SPONSOR

GET INVOLVED TODAY! STAY UPDATED CONNECT WITH US GET INVOLVED TODAY! STAY UPDATED CONNECT WITH US REGISTER AS A DELEGATE ONLINE www.wgc2015.org REGISVTisEit Rw wAwS.w Ag cD201E5L.EorGg ATE ONLINE www.wgc2015.org GVisEit wTwT OwIN .SwPgVOc2ON01SL5O.VoRr gEORD E XTHOIBDIT AY! STAY UPDATED CONNECT WITH US Contact +61 407 031 274 or [email protected] RTOEG SIPSOTENRS OARS AO RD ELXEHGIBAITTE ONLINE VCiosnitt awcwt +w6.w1g 4c02017 053.o1r g274 or [email protected] www.wgc2015.org MARCH 2015 AMERICAN GAS 23 TO SPONSOR OR EXHIBIT Contact +61 407 031 274 or [email protected] COVER STORY

Energy to speed up the pace of research. Right AG: You said in our 2011 interview that be looking for responsible ways to help now I’m cautiously optimistic that DOE any additional regulations or restrictions create new technologies or improve existing will spend the extra money that Congress is on hydraulic fracturing would “diminish ones. What I tend to favor at the federal level providing in 2015 to advance research in the our productivity of the resource.” Do you is fundamental, precompetitive research. coming year. If unlocking methane hydrates still feel that way? How does your blue- succeeds, it could well be the breakthrough print address the continued responsible AG: You’re known as a strong defender that literally mandates advancement of an development of natural gas from hydrau- of your constituents’ interests, especially Alaska natural gas pipeline project. lic fracturing? in developing resources in an environ- Murkowski: It was a clear sign that a lot is mentally responsible way to provide AG: As the U.S. tries to diversify its power going on at the federal level when President jobs, revenue and energy security. Do production, a range of methods—bio- Obama felt the need to issue an execu- you believe that all Americans share mass, geothermal, marine hydrokinetic tive order coordinating all of the agencies those values? As you deal with com- and renewables—are gaining traction next involved in oversight and regulation. I peting interests in a highly polarized to traditional large-scale producers such as remain concerned that federal regulations, or political atmosphere, how will you keep coal and nuclear plants. Natural gas, with several new regulations from several different the needs of your constituents and all its abundance and efficiency, is a perfect agencies, could have a negative impact on of their fellow Americans in mind as fit for clean energy production. Do you production. And I remain convinced that you head the Committee on Energy and see natural gas playing an increased role my approach is the right one: States, not the Natural Resources? in energy production for our homes and federal government, should regulate hydrau- Murkowski: Not everyone will agree on businesses, and what steps do you envi- lic fracturing. All the research over the past every issue—I know that much. At the sion to make it happen? several years—and this administration has same time, all Americans are affected by Murkowski: I prefer to let consumers and put a lot of money into such research—has energy prices, and we see pretty resounding markets sort out which is the best energy seemed to confirm that hydraulic fractur- agreement that those have been too high in resource, but I do see a major role for natural ing, when done properly under existing state recent years. Families all over the country gas going forward. It is affordable, secure, regulations, is perfectly safe and will have no have been forced to make tough choices abundant and clean—and for those reasons negative impacts on drinking water. between a trip to the grocery store and is certainly seeing greater demand. My being able to heat or cool their homes. I’m overarching priorities are to increase access AG: Can the federal government do more hopeful that our current experiences—with to federal lands and waters, to make our to encourage the application of new tech- both low oil and natural gas prices provid- permitting process more efficient, to open nologies to improve natural gas produc- ing a real economic boost and new supply up new markets by eliminating barriers and tion, delivery and use? clearly being the driver—will help demon- to make sure that burdensome regulations Murkowski: Again, I am not looking to strate why all types of energy production don’t take our supply offline. pick winners and losers. We should always are so important. Certainly, Alaskans have

GAS DAY: WILL IT CHANGE? or more than two years, the Federal Energy needed supplies. among the commenters for a time other than 4 Regulatory Commission has worked on a More than 70 parties and groups, in addi- a.m. CCT or 9 a.m. CCT and several parties F range of issues to improve reliability and tion to the American Gas Association and Natu- urged FERC not to adopt a time other than 4 increase coordination between natural gas and ral Gas Council, filed comments in response a.m. CCT or 9 a.m. CCT. electricity markets. Most notably, in March 2014 to the NOPR. There was uniform opposition to Furthermore, there was widespread support FERC issued a Notice of Proposed Rulemaking the 4 a.m. CCT gas day among natural gas among both industries for the proposed later on the Coordination of the Scheduling Processes interests, while comments filed by the regional deadline of the Timely Nomination Cycle and of Interstate Natural Gas Pipelines and Public transmission organizations and independent an additional intraday nomination opportunity, Utilities, proposing to revise the schedule for system operators supported the change. although several electric industry participants con- nominating natural gas service on interstate pipe- The reaction among various other parties of ditioned their support for the recommendations on lines in order to better coordinate their operations the electric industry were mixed. For example, two FERC adopting a 4 a.m. CCT gas day start time. with those of the electric industry. generators supported the 4 a.m. CCT gas day, In light of the comments filed by partici- Among other things, FERC proposed to but the Electric Power Supply Association did not pants, FERC’s Office of Energy Policy and In- move the start of the gas day from 9 a.m. CCT take a position. Similarly, while several electric novation issued data requests to all of the ISOs to 4 a.m. CCT, move the Timely Nomination utilities supported the 4 a.m. CCT gas day, Edison and RTOs, requesting additional information Cycle deadline to 1 p.m. CCT and increase Electric Institute did not take a position. regarding the impact on reliable and efficient the number of intraday nomination opportuni- Interestingly, the combination gas and operations of the current 9 a.m. CCT gas day. ties. The goal of the proposal is to provide electric utilities were split. Although the electric FERC expects to finalize any changes to the greater opportunities for gas-fired generators to and gas industries had varied opinions about gas nomination schedule sometime in 2015. participate in the scheduling process and obtain the gas day start time, there was no support —Michaela Burroughs, AGA Policy Coordinator

24 AMERICAN GAS MARCH 2015 Spring Accounting Conference Here’s what attendees have said • Budgeting & Financial Forecasting • Corporate Accounting about previous meetings... • Property Accounting & Valuation May 17–20, 2015 • Boston, MA “ This is the single most valuable training I get every year.” Property Accounting & Depreciation Training Seminar May 20–21, 2015 • Boston, MA “ A great benefit for members — I hope more of my colleagues will attend.” Revenue Seminar June 1–2, 2015 • Chicago, IL “ Great seminar, I will be utilizing the information during my fiscal 2015 audit plan.” Taxation Committee Meeting June 10–12, 2015 • Austin, TX “ I liked the real-world examples and the deep dive into all the definitions.” Accounting Leadership Conference June 15–17, 2015 • Austin, TX “ This will benefit me at my job.” Chief Audit Executives Conference “ Great examples used to explain a June 15–17, 2015 • Austin, TX confusing topic.” Accounting Principles Committee Meeting August 17–19, 2015 • Asheville, NC

Utility Internal Auditors’ Training Course For registration information: August 24–26, 2015 • Washington, DC www.aga.org/events/2015events For information on meeting content: Public Utility Accounting Courses: Joe Martin, [email protected]; Introduction & Advanced Doug Allen, [email protected] August 24–27, 2015 • Washington, DC For information on sponsorship opportunities: Annemarie O’Donoghue, Accounting for Energy Derivatives Seminar / Workshop [email protected] September 16–18, 2015 • Chicago, IL Group discounts available. Taxation Committee Meeting CPE Credit available. November 9–11, 2015 • Las Vegas, NV Fall Accounting Conference • Corporate Accounting • Property Accounting & Valuation November 15–18, 2015 • Phoenix, AZ

MARCH 2015 AMERICAN GAS 25 COVER STORY

PEOPLE TO WATCH

With the opening of the 114th Congress, many SUBCOMMITTEE ON ENERGY AND POWER energy stalwarts return to the energy policy arena Chair: Ed Whitfield (R-Ky.) Supports “all of the above” energy strategy. Prime sponsor of the proposed and welcome new members. Here’s an overview of Energy Security and Affordability Act, which would set achievable regulations the people to watch. for new power plants and give Congress power to set effective dates for regulations on existing power plants. Has helped modernize national energy HOUSE COMMITTEE ON ENERGY AND COMMERCE policy while promoting clean uses of coal. Committee Chair: Fred Upton (R-Mich.) Vice Chair: Pete Olson (R-Texas) Supports “all of the above” energy strategy of domestic energy production, Supports cutting red tape to expedite gas exports. Supports construction of the breakthrough technologies and safe nuclear power. In 2014, introduced the Keystone XL Pipeline. Prime co-sponsor of legislation requiring the EPA to back “Architecture of Abundance” plan to modernize infrastructure, permit a manu- major rules with feasibility and economic impact studies. facturing renaissance, harness energy efficiency and innovation and unleash energy diplomacy to maximize use of U.S. energy in global affairs. Prime sponsor of H.R. 3301, North American Energy Infrastructure Act, 2013, to SUBCOMMITTEE ON ENVIRONMENT AND THE ECONOMY prevent gridlock in energy projects conducted with Canada and Mexico. Chair: John Shimkus (R-Ill.) Led 1998 law allowing for biodiesel fuel use in federal, state and private Vice Chair: Marsha Blackburn (R-Tenn.) fleets. Led insertion of the Renewable Fuel Standard, requiring that transporta- Considered a policy expert on telecommunications issues and intellectual tion fuels contain a minimum volume of biodiesel and ethanol, in the Energy property rights. Proponent of anti-tax and government reform issues. Supports and Policy Act of 2005. Supports full accounting of costs associated with expediting exports of liquefied natural gas and construction of the Keystone EPA’s ground-level ozone rule. XL Pipeline. Opposes cap and trade. Sponsored H.R. 97 to prohibit the EPA from regulating carbon emissions under the Clean Air Act. Vice Chair: Gregg Harper (R-Miss.) Advocate for American-made energy. Supports stabilizing fuel prices and Chairman Emeritus: Joe Barton (R-Texas) building a steady supply of American energy. Supports high-supply, low-demand, consumer-friendly prices and environmental protection. Responsible for legislation that deregulated the natural gas industry. SUBCOMMITTEE ON HEALTH SUBCOMMITTEE ON COMMERCE, MANUFACTURING, Chair: Joe Pitts (R-Pa.) AND TRADE Supports sustainable energy and reducing dependence on foreign energy and Chair: Michael C. Burgess, M.D. (R-Texas) fossil fuels through innovation, competition and encouragement, not through With interest in transportation, successfully amended the 2005 Highway Bill regulation and taxation. Opposed the 2009 Cap and Trade Act. Has led to include development credits, design-build and environmental streamlining. efforts to repeal the Affordable Care Act and worked to author and pass into Represents the 26th Congressional District, bordering Dallas-Fort Worth, which law the Food and Drug Administration Safety and Innovation Act. is home to the Barnett Shale, the nation’s largest field of natural gas reserves. Vice Chair: Brett Guthrie (R-Ky.) Vice Chair: Leonard Lance (R-N.J.) Supports construction of the Keystone XL Pipeline. Supports the Regulatory Supports pro-growth policies, including leveraging American-made energy Accountability Act. and easing regulatory burdens to promote American manufacturing. Supports construction of the Keystone XL Pipeline. SUBCOMMITTEE ON OVERSIGHT AND INVESTIGATIONS

SUBCOMMITTEE ON COMMUNICATIONS AND TECHNOLOGY Chair: Tim Murphy (R-Pa.) Chair: Greg Walden (R-Ore.) Murphy’s energy working group on freeing the U.S. from dependence on House sponsor of the Crooked River Collaborative Water Security and Jobs Act, foreign oil led to creation of the Infrastructure Jobs and Energy Independence which implements a water management plan to create jobs and boost hydro- Act, which would expedite the exploration of American oil and natural gas power energy. Supports opening federal onshore and offshore areas to energy resources and invest new revenues from leasing and royalties into rebuilding exploration, expediting approval of liquefied natural gas export permits, and roads, bridges, locks and dams. Authored the Pipeline Safety Emergency No- establishing “clear and efficient approval” of pipelines that cross U.S. borders tification Act regarding community emergency notification procedures when a with Canada and Mexico. gas pipeline is ruptured.

Vice Chair: Bob Latta (R-Ohio) Vice Chair: David McKinley (R-W.V.) Supports the American Energy Solutions for Lower Cost and More Ameri- Advocates for natural gas development to promote manufacturing growth. can Jobs Act, which would allow construction of the Keystone XL Pipeline, Supports the Protecting States’ Rights to Promote American Energy Security Act strengthen Canadian and Mexican partnerships for a more secure and (H.R. 2728), which would prevent duplicative federal regulation of hydraulic efficient North American energy market, lower energy costs, expedite LNG fracturing on public lands in states that already have regulations in place; the exports, modernize the review process for natural gas pipeline permit applica- Natural Gas Pipeline Permitting Reform Act (H.R. 1900), which would stream- tions and streamline the federal permitting process for construction projects. A line pipeline permitting; and the Domestic Prosperity and Global Freedom Act prime sponsor of the Energy Star Program Integrity Act, which would codify (H.R. 6), which would expedite the approval of LNG export facilities. Sup- the existing reinstatement process for disqualified products. ports construction of the Keystone XL Pipeline. —Danielle Wong Moores

26 AMERICAN GAS MARCH 2015 90th Annual International School of Hydrocarbon Measurement Cox Communications Center in Oklahoma City, Oklahoma May 12th, 13th & 14th 2015

Presented annually in affiliation with the University of Oklahoma since its origin in 1924, the school is the oldest and one of the largest hydrocarbon measurement schools in the world. Over 180 lecture classes and over 50 hands-on workshops are offered on a wide range of Gas and Liquid Measurement and Flow Control topics. More than 140 educational exhibits are presented by leading manufacturers in the measurement industry worldwide.

For Additional Information, contact: Leon Crowley ISHM Arrangements Chairman Registration Fee 1700 Asp Avenue $125 per Student Norman, OK 73072-6400 (405) 831-8609 phone [email protected] www.ishm.info energy we would like to produce, and our own energy provides good-paying jobs to in ensuring that we remain stewards of this country has energy needs that it can help Americans, strengthens our economic outlook great land in all that we do. It all comes meet. There’s a clear linkage between what and bolsters our national security. I’m simply down to balance. I was born in the Tongass we can do and what the country needs. My expanding on that philosophy when I say that and raised in the southeast. I learned that job is to make the case and to help ensure it is in our national interest to make energy trees are renewable resources that can be that as many members as possible, on both abundant, affordable, clean, diverse and secure. harvested without harming fisheries or the sides of the aisle, understand why that’s the I’d have to think about areas where we might environment if high standards are set and right thing to do. disagree. What comes to mind first are all the followed. As a young adult, I worked on the areas where we agree with each other—and, Trans-Alaska oil pipeline and learned that oil AG: You are following in the footsteps really, almost all Alaskans—starting with de- and natural gas production is a way for us of your father, former Alaska Sen. Frank velopment of the nonwilderness portion of the to achieve economic independence and the Murkowski, who chaired the Senate Com- Arctic Coastal Plain, in the National Petroleum promises made to us at statehood. I learned mittee on Energy and Natural Resources Reserve in Alaska, offshore in the Chukchi that resource development is not mutually from 1995 to 2001. Like you, he advocated and Beaufort seas and elsewhere in Alaska. exclusive with environmental quality, but for opening the Arctic National Wildlife He wants a gas pipeline project to go forward; that it provides jobs and high wages that Refuge to oil drilling. He also sponsored I want a gas pipeline project to go forward. allow us to live, work and play in this rug- legislation to accelerate depreciation for We’re also incredibly frustrated with the lack ged state. I learned that hard work has its natural gas infrastructure and to improve of energy production in federal areas in Alaska rewards, from the beauty that one sees when the economic feasibility of upgrades. What right now. you hike the steep sections of the Chilkoot energy policies do you support in common Trail or the rewards that come when my sons with your father, and are there any areas AG: As a third-generation Alaskan, talk work hard as deckhands on fishing boats. where you differ? What’s the most important to us about what it means to be from the Mostly what I learned from my parents is lesson you’ve learned from your father about Last Frontier. What experiences have you to always stop and listen to the wisdom of politics and public service? Has he given you had and what values did your parents and Alaskans. I’ve learned that Alaskans know a advice about chairing the committee? grandparents instill in you that helped lot more about life on the Last Frontier than Murkowski: My father believes that our shape you today and your philosophy of bureaucrats in Washington. Public officials nation must responsibly produce its natural public service? need to listen more. And we all need to talk resources rather than import them from Murkowski: As one who grew up loving to each other, not at each other, for public abroad. He understands that producing our the Alaskan outdoors, I have a keen interest policy to succeed. u

MARCH 2015 AMERICAN GAS 27 FEATURE

A RACE FOR THE PRIZE Over the next two years, communities across the U.S. will work with local distribution companies to improve energy efficiency as they compete for the Georgetown University Energy Prize. BY ADAM FOLK

28 AMERICAN GAS MARCH 2015 or many of us, the start of money and manpower to tackle energy Slakey said. “Every one of the communities the new year marks the efficiency in an economical way, Slakey that made it into this round got enthusias- beginning of self-improve- said. It’s an area where they simply cannot tic participation from all three sectors.” ment efforts. This year, 50 compete with such megapolises as Chicago communities across the and New York. To do so, they needed an Worldwide Energy Efficiency nation are following in this incentive beyond the long-term savings Starts Here tradition through their from upping their energy efficiency. They The Georgetown University Energy Prize is participation in the Georgetown Univer- needed money. not unlike others—both recent and in years Fsity Energy Prize—a nationwide contest “The ambition is to turn [the George- past—that helped bring global change. In for small cities to increase their energy town University Energy Prize] into the Su- the mid-18th century, with European states efficiency that began on Jan. 1. Over the per Bowl of energy efficiency,” Slakey said. fighting for supremacy on the seas and next two years, these communities will test “It’s needed because small and midsized opening new trade routes, the greatest sea- their resolve to reduce energy consumption cities don’t have anything within their sweet faring nations of the day offered the equiva- as they compete for a $5 million purse. spot. And this is in their sweet spot.” lent of millions of pounds of today’s money The idea for this nationwide competi- To win, the 50 communities—each with to anyone who could solve a problem that tion to increase energy efficiency dates to a population between 5,000 and 250,000— had stumped the world’s greatest minds May 2012, when Francis Slakey, Upjohn will have to forge new alliances between for centuries: an accurate way to determine lecturer on physics and public policy at utilities, local governments and private longitude on long sea voyages. Georgetown, hosted a meeting of mayors, business and industry. They’ll need to report was first to offer a prize in 1567. city planners, utility companies and envi- their progress in cutting total natural gas It was followed by the Netherlands, Portu- ronmental experts from across the country and electricity usage per capita, adjusted for gal, the Venetian Republic and France. But for the first of a series of workshops to the local climate, for a period of two years. it wasn’t until the Sicily naval disaster of develop the prize concept. Meanwhile, they need to develop a process 1707 that Britain offered its own prize in It became clear early on in these discus- that may be replicated easily by other small the hopes of improving safety for its sailors. sions that small cities—constituting 70 cities, no matter their location. Over the next several decades, little-known percent of the U.S. population—lack the “That’s exactly what we’re seeing,” clockmaker John Harrison would create

MARCH 2015 AMERICAN GAS 29 FEATURE

and refine the chronometer, which won “Energy efficiency is the invisible focused on reaching out to groups such as him the prize and solved what was arguably powerhouse in IEA countries and beyond, area college students and low-income resi- the greatest scientific quandary of the age. working behind the scenes to improve dents and getting them to do more. In our age, navigation is not a prob- energy security, lower our energy bills and “I’ve been very surprised at the amount lem for today’s governments. Energy use move us closer to reaching our climate of energy and support for the project across is. Concerns about domestic production goals,” IEA Executive Director Maria van the board,” he said. “Every few days, people of fossil fuels, OPEC and environmental der Hoeven said at the summit launching come up with new ideas. It really has worked problems drive the need for people to use the report. as designed, to raise the level of sophistica- less. Today, many people in cities, utilities With all of this in mind, Nelson said tion of our energy efficiency activities.” and at Georgetown believe they can repli- he hopes someone in a small American Bellingham’s outreach efforts started ear- cate Harrison’s success with the problem of city will be the one to increase the world’s lier than most when they tipped off Cascade energy efficiency. efficiency even more. “[The contestants] Natural Gas about the prize. Cascade, in “Prizes work,” said Christofer Nelson, are going to come into this with fresh eyes turn, helped another Washington city— project director for the Georgetown Uni- and new approaches that haven’t been tried Walla Walla—become involved. Now versity Energy Prize. “They’ve worked for before because nobody has asked them to.” Cascade provides energy and advice to four hundreds of years. They work specifically separate contestants. Monica Cowlishaw, the for stuck problems like energy efficiency, Communities at Work manager of energy efficiency and communi- and, in fact, we’re already seeing it.” About 90 miles north of Seattle and 21 ty outreach for Cascade, has worked closely Like the old empires of Europe, today’s miles from the Canadian border lies the with each of the communities from the nation states are struggling with an issue city of Bellingham, Washington. For years, outset. For Cascade, it’s a chance to serve the that is stumping the world’s top minds: Bellingham has worked to be a leader in communities and practice what Cowlishaw Worldwide demand for energy is ravenous. energy efficiency and green energy with calls “good environmental stewardship.” Growing nations will increase world energy forward-thinking programs and initiatives. “Our ears perked up,” Cowlishaw said. demand by 37 percent in 2040, according For them, the Georgetown University “We were really excited to hear of the pros- to the latest International Energy Agency Energy Prize is a way to take their efforts to pects of one of our local service territory annual “World Energy Outlook” report. the next level, according to Mark Gardner, towns able to win a $5 million prize, not to In a statement, the Paris-based agency said legislative policy analyst for the Bellingham mention the two-year process of reduc- the pressure on the global energy system City Council. ing energy use and increasing community would be greater if not for recent world- “The prize provided an opportunity awareness of energy consumption.” wide energy efficiency efforts. Those efforts, to fine-tune and strengthen a lot of those Supporting the contestants means stay- the IEA said, are “becoming an established programs and also look for ways to update ing impartial, but also aiding each by engag- market segment, with innovative new prod- and improve their design,” Gardner said. ing with some of the cities’ planning groups ucts and standards helping to overcome The city’s toughest challenge will be to and giving feedback on questions about data risks and bringing stability and confidence convince the late adopters, the people who and natural gas-related upgrades. to the market.” haven’t yet worked to decrease their home “We would love for all four to win, The agency estimates the global energy or business’ energy use, that it’s both in their although that’s obviously not practical,” efficiency market is worth at least $310 bil- interest and easy to do, Gardner said. Part of Cowlishaw said. lion a year, and it continues to grow. that work means the Bellingham team is One of the people helping to decide

GEORGETOWN UNIVERSITY ENERGY PRELAUNCH STAGE ONE PRIZE FROM START TO FINISH 2013 – 2014 APRIL – JUNE 2014 ommunities must develop a long-term energy efficiency plan Cand be able to demonstrate its effectiveness and sustain- Letter of Intent Applications: Communities submitted stock appli- ability over a two-year period. They will be judged, in part, on cations that were reviewed by the Energy Prize team. their ability to: Those selected progressed to Stage Two. • Spur innovative approaches to decrease their per-capita energy usage. • Highlight the best practices for communities working with utilities, businesses and their local governments to create and implement plans for sustained energy efficiency. • Educate the public and engage students in energy efficiency ✔ ✔ issues.

30 AMERICAN GAS MARCH 2015 the winner is Cynthia Sandherr, director of outreach, recognizing early in the process efficient compared with electricity because community sustainability programs and a the importance of coordinating with local very little energy is lost during the trans- consultant for the American Gas Founda- public schools and the area’s three colleges. mission and distribution of the gas. Homes tion, a prize launch sponsor. Seventy-two The Sustainable Living Center, a nonprofit that use natural gas appliances for heating, communities submitted applications, and that advocates for conservation efforts in water heating, cooking and clothes drying of those, 53 moved on to the quarterfinals the city, has spearheaded efforts by holding spend an average of $693 less per year than and 50 to the semifinals. Sandherr person- meetings and answering questions about homes using electricity, according to the ally reviewed 13 of these submissions to the prize. Its executive director, Erendira American Gas Association. see if they met the minimum guidelines for Cruz, said working with the educators is the Georgetown sought the AGF’s involve- the project, whether AGF and Georgetown perfect way to increase energy efficiency. ment specifically because the university could help them in any areas and to see if “That’s where you can really make an recognized that utilities play a key role in there were notable new ideas. impact on the future,” Cruz said. “You’re educating consumers about energy use, “There’s potential all the way through teaching a whole new generation of kids said Kathryn Clay, vice president of policy to help make sure the communities suc- and young adults how to save energy. strategy for AGA. ceed,” Sandherr said. And she’s confident They’ll be able to internalize it a little better “That’s something AGA member the winner’s innovative ideas will capture than some of us old fogies.” companies excel at—helping consumers the world’s imagination. If Walla Walla happens to win the prize, make informed energy choices,” Clay said. “Where the competition is really going Cruz said the money will likely be put “One important aspect of this competition to succeed is there will be something de- into investments for the city. But even if it is that it measures energy efficiency over the livered—whether it’s a process, technology doesn’t come out on top, Walla Walla will full fuel cycle. This creates a tremendous or combination of communication and be a winner anyway, she said. opportunity for natural gas utilities to talk community engagement—that is really go- “We just thought that it would be a with their customers about the journey ing to be an extraordinary means to deliver great way to engage the community around their energy makes to reach them and the energy efficiency.” a common goal. There’s basically no down- benefits of choosing natural gas.” For example, some communities are side to trying to save energy.” For AGA, the prize also spotlights the planning to establish “ambassador ser- more than $1 billion a year that member vices”—public places that act like a public Continuing the Conversation companies spend on promoting energy effi- help desk for energy efficiency issues. Early on, launch sponsor American Gas ciency. And it’s a chance for utilities and cit- Residents will be able to get information on Foundation recognized that the Georgetown ies to cooperate toward a common goal. One energy efficiency that’s specifically tailored University Energy Prize would be a great way key part of that, according to Sandherr, has to their home as well as information on the to continue the conversation about the bene- been making sure cities and AGA member latest discounts and government rebates. fits of natural gas. The prize offers natural gas utilities abide by the rules and benchmarks Communities seem to recognize that utilities all over the nation the opportunity to set by the energy project’s founders. outreach is a key part of using energy more educate residential and municipal custom- Sandherr said she wants all of the cities, efficiently, Sandherr said. “Technology ers about the greater efficiency and reduced not just the winner, to see a benefit from isn’t enough. It’s not one size fits all. There emissions that come from using natural gas, participating in the contest. “The hope is needs to be some tailoring.” said Sandherr. everybody is going to come away with some Walla Walla is also relying heavily on The direct use of natural gas is more improvements in their energy efficiency.” u

STAGE TWO STAGE THREE STAGE FOUR ✔ = completed AUG. – NOV. 2014 JAN. 2015 – DEC. 2016 JAN. – JUNE 2017

Quarterfinals:Communities submitted Semifinals:The selected cities will compete for Finals: The finalists will be selected based on their energy- detailed plans for their energy-saving pro- two years to reduce their energy consumption. saving performance in Stage Three. A panel of judges will gram. These are long-term plans, score the final reports in specific, weighted categories and with commitments by governments, residential select the winners based on a combination of these scores and associations, institutions and businesses. the Stage Three energy-saving performance. The highest-ranking community will be awarded first place, with the requirement that the prize purse benefit the community at large. Second and third place will also be awarded. The additional winners will ✔ receive special recognition and additional benefits, which may include cash prizes.

MARCH 2015 AMERICAN GAS 31 JOBS

Listings may be posted on AGA’s website for 90 days and in one issue of American Gas. Rates: AGA member companies: $150 for up to 50 words, $1 per additional word; nonmembers: $250 for up to 50 words, $2 per additional word. All ads must be prepaid. Unless noted, the code following each listing ensures confidentiality and should be referenced in correspondence.

TO SUBMIT A LISTING TO JOBLINE, PLEASE VISIT WWW.AGA.ORG.

DIRECTOR, ELECTRIC SERVICES • Warm, outgoing personality. registration and meeting support. PROGRAMS • Strong project management skills. • Maintain strong relationships with committee To provide meeting planning, volunteer manage- • Willingness to take ownership and responsibil- volunteers and solicit new committee participa- ment, and event leadership for Electric Section ity for own work and willingness to assist others tion and leadership, as necessary. groups. when needed. Job Type: Full time, Salary; Reports To: Vice Presi- • Intermediate skills in word-processing, data- QUALIFICATIONS: dent, Program Services base programs, Excel, Outlook, Internet search • College degree (preferred) or related work engines and conference webinar platforms such experience. KEY RESPONSIBILITIES: as WebEx. • Prefer 3+ years working in an association or • Meeting planning, committee management and • Ability to accurately enter information into da- member driven organization. event leadership: Lead the planning, develop- tabase and clearly and accurately communicate • Prefer 3+ years’ experience in the natural gas ment and execution of the various MEA Electric meeting information to webpage and marketing utility industry. Section in-person meetings, webinars and other materials. • Previous experience in meeting planning and learning events as required. • Experienced in multitasking, setting priorities and organization administration. • Work collaboratively with the Electric Section willingness to adjust to changing needs. • Excellent interpersonal skills. volunteer committees and appropriate MEA • Willingness to travel as necessary; anticipated • Strong communications skills—phone and in- staff in developing program agendas and event travel is 6–9 trips/year. person. logistics. • Warm, outgoing personality. • Lead the site selection and meeting planning Interested parties please contact • Strong project management skills. details (venue location, food, meeting room [email protected]. • Willingness to take ownership and responsibil- requirements, sleeping rooms, contracts, a/v ity for own work and willingness to assist others requirements, etc.) DIRECTOR, GAS SERVICES PROGRAMS when needed. • Lead the development of online meeting informa- To provide meeting planning, volunteer manage- • Intermediate skills in word-processing, data- tion and registration. ment, and event leadership for Gas Section groups. base programs, Excel, Outlook, Internet search • Maintain records and work within process Job Type: Full time, Salary; Reports To: Vice Presi- engines and conference webinar platforms such guidelines established by IACET (if necessary for dent, Program Services as WebEx. a given event). • Ability to accurately enter information into da- • Lead the collection and organization of speaker KEY RESPONSIBILITIES: tabase and clearly and accurately communicate information and communicate with speakers • Meeting planning, committee management, and meeting information to webpage and marketing when needed. event leadership: Lead the planning, develop- materials. • Lead the development and delivery of event ment, and execution of the various MEA Gas • Experienced in multitasking, setting priorities and marketing materials. Section in-person meetings, webinars and other willingness to adjust to changing needs. • Lead the development and compilation of event learning events as required. • Willingness to travel as necessary; anticipated evaluations. • Work collaboratively with the Gas Section vol- travel is 6–9 trips/year. • Develop and monitor event budgets. unteer committees and appropriate MEA staff in • Manage any CEU/PDH-related requirements & developing program agendas and event logistics. Interested parties please contact documentation. • Lead the site selection and meeting planning [email protected]. • Attend meetings as required and provide onsite details (venue location, food, meeting room registration and meeting support. requirements, sleeping rooms, contracts, a/v DIRECTOR, GAS TRANSMISSION & • Maintain strong relationships with committee requirements, etc.) DISTRIBUTION GENERAL CONSTRUCTION volunteers and solicit new committee participa- • Lead the development of online meeting informa- This position is responsible for leading the Gas Dis- tion and leadership, as necessary. tion and registration. tribution General Construction organization within • Maintain records and work within process Gas T&D Maintenance and Construction (M&C) QUALIFICATIONS: guidelines established by IACET (if necessary for for PG&E’s north region. This Director is respon- • College degree (preferred) or related work a given event). sible for safely and efficiently installing new and experience. • Lead the collection and organization of speaker replacing existing gas pipelines and facilities in • Prefer 3+ years working in an association or information and communicate with speakers accordance with the investment plan. Construction member driven organization. when needed. work includes hydro testing, pipeline replacement, • Prefer 3+ years’ experience in the electric utility • Lead the development and delivery of event Maximum Allowable Operating Pressure validation industry. marketing materials. digs and in line inspections. Pipeline replacement • Previous experience in meeting planning and • Lead the development and compilation of event includes the replacement of plastic, steel and cast organization administration. evaluations. iron using the most efficient trenchless method of • Excellent interpersonal skills. • Develop and monitor event budgets. excavation such as horizontal directional drilling, • Strong communications skills—phone and • Manage any CEU/PDH-related requirements & pipe bursting, inserting and pneumatic drilling. in-person. documentation. This Director must be able to travel at least • Attend meetings as required and provide onsite 50% of the time with occasional overnight stays.

32 AMERICAN GAS MARCH 2015 The position reports to the Senior Director of Gas time to join our company. We are expanding in the determination of required remedial work to T&D Construction. The Director’s organization is state and have the following new job opportunity proactively prevent well leaks. primarily comprised of the following: in South Burlington, VT. • Advanced reserve and flowrate forecasts for use Gas Transmission & Distribution General At Vermont Gas, you’ll find an atmosphere of in multi-million dollar projects or equivalent. Construction superintendents, supervisors, field en- teamwork, competitive salaries and a comprehen- • Integrated well capability and gathering pipeline gineers, various physical workers and clerical and sive benefits package. Join a growing company design and cost minimization. support employees (the majority of the workforce where your energy makes a difference. In Vermont, • Financial analysis of technical alternatives includ- is represented by IBEW 1245 and Engineers and you’ll find a high quality of life, good schools, ing cost-of-service and cost/benefit analysis. Scientists of California, ESC). recreation for all seasons and stunning views every • On-site work direction during stimulation, Contract resources performing inspection and day. For more detail on the company and these workovers and/or well drilling or plugging as construction work on behalf of PG&E. opportunities, go to www.vermontgas.com. needed. Interested candidates should apply at www.jobs. • Inventory verification and well integrity preserva- JOB RESPONSIBILITIES vermontgas.com. Vermont Gas is an Equal Oppor- tion. • Leads and mobilizes geographically distributed tunity Employer. EOE AA M/F/Vet/Disability. teams in the timely and safe accomplishment of QUALIFICATIONS: gas distribution construction work. SENIOR RESERVOIR ENGINEER • Bachelor of Science in Petroleum or Geologi- • Improve Safety and Human Performance to (DOWNTOWN DETROIT, MI) cal Engineering or equivalent, and five to eight include OSHA Recordable Rate, Lost Work Day DTE Energy is a Fortune 500 company based in years’ diverse job experience. Case Rate, Motor Vehicle Incident Rate, Premier/ Detroit, MI. We are a diversified energy company, • Major oil or gas company experience preferred. Pulse Survey, Performance Management and involved in the development and management of • Bachelor of Science in Petroleum Engineering Process Improvements/Execution. energy-related businesses and services nationwide. preferred. • Deliver on Budget, on Plan and on Purpose the Our operating units include DTE Electric Company, • Natural gas storage experience preferred. Gas Distribution Capital Budget, Gas Distribu- an electric utility serving 2.2 million customers in • Professional registration is desired. tion Expense Budget, Unit Costs, Labor Costs, Southeastern Michigan, DTE Gas Company, a • Advanced knowledge of gas-storage deliverabil- Overtime, Project Schedule Milestones, Complete natural gas utility serving 1.3 million customers in ity mechanisms, transient flow test analyses, and Critical Projects and Complete Maintenance Michigan, and other non-utility energy businesses stimulation techniques and inventory analysis. Plans. focused on coal and gas mid-stream services, • Advanced knowledge of production drive • Improve Reliability/Drive Customer Satisfaction power and industrial projects, unconventional gas mechanisms and oil- and gas- in-place determi- by completing Capacity/Reliability Improvement production and energy trading. Information about nation techniques. Projects and connecting new business customers. DTE Energy is available at www.dteenergy.com. • Nodal analysis methods to provide rate and • Partner with and empower employees and union pressure forecasts to the plant inlet. representatives to enhance employee satisfaction JOB SUMMARY • Selects vendors for services and materials, and engagement. DTE Energy has an exciting opportunity for a completes or coordinates material procurement, • Partner with peers, staff departments, matrix Senior Reservoir Engineer with natural gas storage landowner contacts and state filings. organizations and outside agencies to improve experience in our Geology and Reservoir depart- • Directs field and office projects (with both internal overall business results. ment located in downtown Detroit, MI. This position employees and external contractors) for drilling, • Oversees projects contracted to outside vendors supports our DTE Gas Company and has the testing, maintenance and stimulation of storage and the associated work inspections. following responsibilities: Applies intensive and di- wells. • Maintains effective relationships with contractors versified knowledge of engineering and geological • Responsible for maintenance of Reservoir and ensures work is completed within company principles to plan, design, construct and maintain Department equipment, tracking inventory and and regulatory quality and safety standards. gas storage capacity and deliverability to meet disposing of surplus equipment as required. market demands. Make decisions independently • Four of items 1 through 6 and extensive under- Interested parties please contact [email protected]. utilizing advanced techniques and the modification standing of Excel, reservoir engineering/geologi- and extension of current theories and practices, to cal software and database management. ENGINEERING MANAGER resolve unique, complex technical issues. Applies • Experienced in technical paper preparation This position is responsible for providing engineer- diversified knowledge to determine gas reserves, and presentation or as testimony as an expert ing and technical support to Operations Services, contents and flowrates, preserve stored gas witness. Construction and Engineering. The duties include inventory as well as enhancing and/or protect- • Must be able to develop and manage budgets. designing natural gas transmission and distribu- ing corporate cash flow and earnings. Extensive • Must practice the corporate core values of tion facilities within our service territory, planning computer modeling is utilized to obtain results for Integrity, Respect, Learning, Business Success and and construction of transmission and distribution the preceding responsibilities. The knowledge and Customer Service. reinforcement facilities and ensuring compliance expertise required for this level usually results from • Must be able to work with people at all levels and record keeping of our integrity management progressive experience. Supervisory consultation both within and outside the Company. programs. The individual also manages the Gas is limited to unusual problems and developments. • Must be able to make clear and concise presen- Engineers, Corrosion Technician and GIS Engineer- As a specialist, you may be assisted on projects by tations to all levels of management. ing Technician. others or assist others in data evaluations. • Attendance information for the past three full The ideal candidate must have a Bachelor’s years or since initial employment may be used. degree in Civil Engineering or other related KEY ACCOUNTABILITIES • Must have a valid driver’s license, provide a suit- engineering field, seven or more years’ progressive • Maintain storage field and well deliverability to able vehicle for use on Company business and experience in the natural gas industry in a techni- meet peak day requirements, many times under meet Company driving standards. cal engineering position, experience managing immediate time constraints. technical staff and large capital projects and pos- • Economically driven maintenance and enhance- ***Must receive a score of a RECOMMENDED sess advanced project management and planning ment via state-of-the-art techniques. on an online pre-hire assessment; Assessment will skills. Knowledge of DOT and PHMSA codes and Storage field design for both current and future arrive by email*** regulations is a must. multi-million dollar investments. Vermont Gas Systems is a transmission and • Advanced well and reservoir performance Interested applicants must apply at www.dteenergy. distribution company providing natural gas to al- simulation. com/careers; Click Search/Apply, then enter job most 50,000 customers in Vermont. It’s an exciting • Interpret corrosion and related logs and/or number 06735.

MARCH 2015 AMERICAN GAS 33 BURNER TIPS

Engaging with customers on social media increases their satisfaction and builds your brand. BY KIM BURKE

SOCIAL MEDIA HOW A SIMPLE THANK-YOU RESONATES id you ever think your best in class by their peers share common Our 2014 survey asked utilities which company would com- attributes: They have a social media strategy social media channels they intended to municate with customers and offer informative and engaging content. start using, stop using, increase the use of, via Twitter, let alone be They have a presence on a variety of chan- decrease the use of or maintain the same “liked” on Facebook? I nels. More often than not, they have a team use of over the next 12 months. The two never thought so, and I dedicated to social media and a budget to channels that more respondents stated they work in the industry. But pay for ads and tools that help track, measure would start using are Instagram and blogs. a few months ago I tweeted a thank-you to and analyze data. Meanwhile, more than half of respondents Dmy utility for expeditiously fixing a broken But many utilities are still grappling with indicated that they plan to increase their use streetlight that I had reported online. The how to enhance their social media presence, of LinkedIn and YouTube. company thanked me back, letting me know so we put together these recommendations Solicit ideas from across the organiza- it was happy the issue was resolved. As some- based on advice from top performers: tion. Another trend we’ve noticed is the one who follows utility social media trends, Explore new channels. Because social expansion of social media involvement I thought to myself, “Yes! That’s how you media is always growing and changing, it’s throughout departments. Although corpo- provide a good customer experience!” important to be flexible and open to trying rate communications still typically “owns” We’ve seen exciting growth and sophis- new things as long as you don’t overextend the social media function, other departments tication in the industry in the five years that yourself across too many channels. Don’t lose have figured out that having a voice online E Source has conducted its annual Utility sight of maintaining consistent messaging can be a good thing. For example, Human Social Media Survey. Our 2014 survey results and branding across all channels to ensure Resources might use Twitter and LinkedIn indicate that utilities that are considered you’re speaking with a unified voice. to recruit for jobs, and marketing and energy

START USING STOP USING INCREASE USE DECREASE USE MAINTAIN SAME USE DON’T HAVE PLANS TO START USING

INSTAGRAM (N = 50) 20 452 UTILITY BLOG (N = 50) 24 21240 GOOGLE+ (N = 49) 10 867

PINTEREST (N = 49) 8 276

LOCAL ONLINE COMMUNITIES/BLOGS (N = 47) 4 13 75

YOUTUBE (N = 53) 51 2384

FACEBOOK (N = 55) 46 4424 SOCIAL MEDIA CHANNEL

LINKEDIN (N = 54) 54 30 13

FLICKR (N = 49) 8 66 29 47

TWITTER (N = 57) 44 53

OTHER (N = 7) 57 43

0% 20% 40% 60% 80% 100% PERCENTAGE OF RESPONDENTS

34 AMERICAN GAS MARCH 2015

020406080 100 120 efficiency groups might use Facebook to let monitoring tweets and comments. According customers know how to save energy and to Ike Pigott, communications strategist for money. Encouraging other groups—yes, Alabama Power, to truly be an active listener even executives—to participate in social on social media you have to respect custom- media and experience its benefits can help ers, listen for context and respond like a foster support. human being. Just because criticism is inevi- Measure performance and celebrate table doesn’t mean you can’t seize the oppor- success. Capturing customer feedback and tunity to learn what customers’ pain points using a variety of metrics to gauge the success are and proactively address their concerns. of your social media activities can help you Most of the time, the fact that you build a business case to hire more people and engaged with a customer leaves them feeling increase (or get) a budget for social initia- better. Active listening enables companies tives. Our survey indicated that a majority of to discover valuable insights into customers’ utilities use the number of fans or followers channel preferences, learn which content they NEXT MONTH and the amount of retweets, comments, find most relevant and uncover what they’re click-throughs and mentions to quantify truly thinking. This data can then be used to RENEWABLES AND NATURAL GAS how many people they’re reaching via social inform your editorial calendar as well as your Pipeline-ready natural gas—from dairies? media. Yet these numbers can’t tell the whole customer service and engagement strategy. Across the nation, natural gas utilities are story. Understanding the true impact of your Social media is unique in that it’s the looking at innovative ways to reduce emis- social media strategy should include looking channel of choice for relaying time-sensitive, sions, promote environmentally friendly build- at whether customers got their issues resolved critical information. Yet its less formal tone ing solutions and work with policymakers to and how satisfied they were with the resolu- also makes it one of the best mediums to redefine natural gas as a renewable resource. tion. Utilities can use social media analytics humanize a company’s brand and give it a tools and voice-of-the-customer technology personality. Both of these attributes lend BURNER TIPS: ASSET MANAGEMENT to listen to customer feedback and assess themselves to creating positive customer Do you know your assets’ condition and risk? the sentiment of posts and their customers’ interactions and increased satisfaction. PwC’s Daniel Bowman and Chris Fynn provide overall experience. Sharing the results of Though it can’t solve all of your commu- a walk-through on how to put together an effi- these metrics and celebrating the positive nication challenges, social media should be cient and effective asset management strategy. interactions that someone in your company viewed as an essential tool in your overall had with a customer can improve employee digital strategy. u morale and gain support for the organiza- tion’s social media strategy. Kim Burke is the director of the customer Listen to your customers. To really experience and marketing research practice listen to customers, you have to go beyond at E Source.

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American Gas advertisers support your association. AGA members and associates are in bold type.

MARCH 2015 AMERICAN GAS 35 MAKING A DIFFERENCE

HONORED TO SERVE VETERANS

G&E spokesman and Navy veteran Denny Boyles as a Central Valley Honor Flight guardian for Eugene Mould (right) of accompanied about 75 World War II veterans on a Modesto, California, who was a B-17 and B-24 pilot during the war. three-day trip last fall to Washington, D.C., to visit “I still get emotional when I talk about it,” said Boyles, “because of several memorials, watch the changing of the guard at what it meant to the veterans, to have that experience of people thank- Arlington National Cemetery and see the World War II ing them for their service and seeing memorials from that time in their aircraft exhibit at the National Air and Space Museum. lives that was decades ago but still very vivid in their memories.” u The Honor Flight is free to the veterans and gives them a chance to see the memorials built in their honor; Are your employees or company making a difference in your PPG&E is a sponsor of the program. Boyles (left) served community? Contact [email protected] to submit your ideas. PHOTO PROVIDED BY DENNY BOYLES

36 AMERICAN GAS MARCH 2015 Customer Service Conference & Exposition 2015 REGISTER TODAY!

April 6-9, 2015 Exhibit Dates: April 7-8 Omni Shoreham • Washington, DC

Register now and join your utility industry peers to Is Your System cultivate ideas and discuss best practices in customer service Standing Up to operations, accounting, processing, and management at EXTREME this premiere event. CONDITIONS? To register, view the conference program, and fi nd more details, visit www.aga.org/EEI.AGA-CSC2015 At Itron, we’re dedicated to delivering solutions that help utilities realize operational effi ciencies and deliver enhanced customer service—in even the harshest weather conditions. Itron’s Advanced Metering Infrastructure solution helps utilities deliver natural gas more effi ciently Exhibit & Sponsorship General Information than ever before. Itron’s AMI solution enhances Opportunities Sherri Hamm safety, expands customer service benefi ts and [email protected] Exhibit Promotions Plus 202.824.7201 empowers gas utilities to realize new cost saving [email protected] opportunities and deliver added-value services. 410.977.0763

Learn more www.itron.com/gas

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