Reach More Data in More Places

Reach moreReach data more Reach data more data in more places.in more places.in more places.

NOVEMBER 2015 AMERICAN GAS 1 Go the distance with the new Sensus® Smart Gateway. Because it’s time to reach beyond meter reading.

Good business intelligence relies on capturing quality meter data. But it doesn’t stop there. Now, with the Sensus® Smart Gateway Sensor Interface with FlextNet ® communication network, you can collect essential data across your entire system. Even in places without power. Track pressure highs and lows. Deliver alarms. Get insight into pipeline changes. So you can cost-effectively increase response time. Improve planning and maintenance. And safely deliver natural gas to your community.

Nothing’s out of reach.

To learn how you can get more essential data, visit sensus.com/sensus-smart-gateway-gas.

2 AMERICAN GAS NOVEMBER 2015 THE MONTHLY MAGAZINE OF THE AMERICAN GAS ASSOCIATION NOVEMBER 2015 AMERICANGAS

STATE REPORT: EXPANSION EQUALS ECONOMIC DEVELOPMENT 28 THE TECHNOLOGY FACTOR NEW TECHNOLOGIES IN THE NGV SECTOR ARE PAVING THE ROAD FOR GREATER ADOPTION BelGas.net 800.727.5646

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AMERICANGAS VOLUMEAMERICAN 97 NUMBER GAS 9 NOVEMBER 2015

FEATURES

Cover Story 22 The Technology Factor BY JULIA BAILEY New technologies in the natural gas vehicle sector are paving the road for greater adoption by fleets and consumers. Here is an update on some of the latest innovations helping to deliver even lower vehicle emissions, improve refueling options and increase convenience.

State Report 28 Expansion Equals Economic Development BY M. DIANE MCCORMICK Where natural gas goes, business follows. As expansion and replacement ramps up across the nation, utilities have a seat at a very important table. Plus, we share our annual state report on expansion and replacement activity. 22

PIPELINE STATE WATCH BURNER TIPS

Sniffy’s Underground 5 Storage 10 Career Growth 15 Change Management 34 Companies are taking a new look When ONEOK separated its Digest 6 at salt facilities. New England 16 natural gas distribution business and Piedmont Natural Gas is going Study predicts harsh consequences created a new, independent utility green with NGVs; experts predict a By the Numbers 12 if energy infrastructure isn’t built. called ONE Gas, the utility faced warmer winter season thanks to El Are companies in the utility sector a daunting task of communicating Nino; and more. ready for the dangers of today’s New York 17 organizationwide changes. interconnected world, as the rate of State’s first compressed natural gas Industry 6 cyberattacks continues to rise? facility opens in Manheim. DEPARTMENTS Agreement would bring together Southern Company and AGL People 13 Minnesota 17 President’s Message 2 Resources. City and utility collaborate to deliver What’s happening in the “real world” Places 14 natural gas. of natural gas? More homes and Pipelines 7 businesses are using this abundant FERC publishes best practices Washington 18 clean energy than ever before. communications manual. State regulators urge risk-based ONLINE EXCLUSIVE hedging practices. Jobs 36 Customer Service 7, 8 Veterans at Work Convenient kiosks catch on with Veterans represent an untapped Alaska 19 Ad Index 39 customers; and AGA members are resource with skills that are already State will have its own goals within featured on survey of trusted utility a perfect fit for the natural gas EPA’s Clean Power Plan. Making a Difference 40 brands. industry. The quick thinking of an Oklahoma California 21 Natural Gas employee saved a Science 9 New incentives promote NGVs in woman trapped in the aftermath of Beneficial microbes could make the trucking industry. a tornado. gas extraction easier.

COVER ILLUSTRATION BY XXXXXX. ABOVE PHOTO COURTESY OF SOUTHWEST GAS.

NOVEMBER 2015 AMERICAN GAS 1 What’s happening in the “real world” of natural gas? We’re finding that more homes and businesses are using this abundant clean energy than ever before, driving economic development and benefiting the environment.

PRESIDENT’S MESSAGE BY DAVE McCURDY

THE REAL WORLD

ne of the most enjoyable parts ington to Connecticut, the low price of natural gas brought of this job is the opportunity on by our domestic abundance of this clean energy resource to visit utilities all across the means more homes and businesses want access and the benefits country and then share details that natural gas brings. Even further, 36 states have passed or about what is happening in are considering projects to expand their natural gas distribu- the “real world” of natural tion network. As the article notes, “The efforts blend strategic gas with folks in Washington, thinking, comprehensive planning and partnerships forged with DC. Not only does our nation traditional and unlikely allies.” benefit from greater use of It all comes down to one simple fact: Natural gas is a driver this abundant clean energy, but we’re finding that American of economic development. From 2007 through 2014, we have consumers want that to continue. seen a 17 percent reduction in costs to consumers driven by a OMore homes and businesses use natural gas today than ever 20.9 percent drop in the cost of gas. The two-year average cost before, and the numbers continue to increase. In September, of an individual household natural gas bill has dropped about the American Gas Association released a new report entitled $250. We have also seen a surge in manufacturing based on the “Got Growth?” that examines the growth of the natural gas affordable and stable price of natural gas. Several programs that distribution sector. Chris McGill, AGA’s vice president of policy states are considering for expansion of natural gas infrastructure analysis and one of the report’s authors, was interviewed about include the use of “anchor customers,” heavy users of energy the report for an online exclusive story (www.amgas.org/the-rest- such as factories that help the economics of gas main extension of-the-story). projects. Moreover, if these factories were previously using coal According to the report, the number of homes that receive or oil, there is a great benefit to our environment when they natural gas service has grown 22 percent since 1993. “Got switch to clean natural gas. Growth?” also details how residential customer growth has We are telling this story in the halls of Congress and in every required additions to distribution pipeline infrastructure in department of the Administration. All Americans stand to gain if order to ensure reliable service, and it examines the innovative we update our policies to realize the full potential of our nation’s regulatory mechanisms that states are increasingly adopting to natural resources. A legislative and regulatory approach that align utility incentives with policy goals of improving energy reflects what you have shown me in your communities can help usage, providing access to natural gas and reducing emissions. boost our economy while helping to improve our environment. u Safety is our core value and the top priority for natural gas utilities. We have seen an acceleration of programs to replace pipelines that are no longer fit for service, and now such programs exist in 40 states. In this issue, we explore the ways in which governors, utility commissions and legislators are working with utilities to expand access to natural gas. From Mississippi to New York and Wash- President and CEO, [email protected]

2 AMERICAN GAS NOVEMBER 2015 NOVEMBER 2015 AMERICAN GAS 3 THE MONTHLY MAGAZINE OF THE AMERICAN GAS ASSOCIATION AMERICANGAS

EDITORIAL DIRECTOR EXECUTIVE EDITOR CREATIVE DIRECTOR Tracy L. Burleson Annette Gray Serena Spiezio [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 Melanie Bracey ADVERTISING CIRCULATION MANAGER EDITORIAL COORDINATOR Justin Wolfe Sherri R. Hamm Jordan Kell The YGS Group [email protected] 717/430-2238 [email protected]

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OFFICERS DIRECTORS

CHAIRMAN OF THE BOARD Craig L. Adams, PECO Energy, an Exelon Co. Michael P. McMasters, Chesapeake Utilities Corp. Terry D. McCallister, WGL Holdings Inc. William J. Akley, Eversource Energy Scott L. Morris, Avista Corp. Dennis V. Arriola, Southern California Gas Co. Michael Noone, SourceGas LLC FIRST VICE CHAIRMAN Robert F. Beard, UGI Utilities Inc. Morgan K. O’Brien, Peoples Natural Gas Ralph A. LaRossa, Public Service Electric & Gas Co. Carl L. Chapman, Vectren Corp. Scott M. Prochazka, CenterPoint Energy Kim R. Cocklin, Atmos Energy Corp. Ian Robertson, Algonquin Power & Utilities Corp. SECOND VICE CHAIRMAN Laurence M. Downes, New Jersey Resources John G. Russell, CMS Energy Corp. Pierce H. Norton II, ONE Gas Inc. Jeffrey E. DuBois, South Jersey Gas Co. Suzanne Sitherwood, The Laclede Group Inc. Kevin Fletcher, WEC Energy Group Thomas E. Skains, Piedmont Natural Gas Co. Inc. IMMEDIATE PAST CHAIRMAN Gordon L. Gillette, Tampa Electric and Peoples Gas John W. Somerhalder II, AGL Resources Gregg S. Kantor, NW Natural Joseph Hamrock, NiSource Inc. Nick Stavropoulos, PG&E Kimberly J. Harris, Puget Sound Energy Ronald J. Tanski, National Fuel Gas Co. PRESIDENT & CEO John P. Hester, Southwest Gas Corp. Dave McCurdy, American Gas Association Glenn R. Jennings, Delta Natural Gas Co. Inc. ADVISORY Ronald W. Jibson, Questar Corp. DIRECTORS SENIOR VICE PRESIDENT & COO Marie E. Jordan, National Grid Lori S. Traweek, American Gas Association Patricia L. Kampling, Alliant Energy Lonnie E. Bellar, LG&E-KU, PPL Companies Nicole A. Kivisto, Montana-Dakota Utilities Co. Julie A. Dill, Spectra Energy Corp. GENERAL COUNSEL Steven E. Kurmas, DTE Energy David R. Emery, Black Hills Corp. Kevin B. Belford, American Gas Association Kent T. Larson, Xcel Energy Inc. William J. Fehrman, MidAmerican Energy Co. James P. Laurito, Central Hudson Gas & Electric Corp. Rory Miller, Williams Companies Inc. CORPORATE SECRETARY Diane Leopold, Dominion Energy William C. Stephens, ATCO Gas Gary W. Gardner, American Gas Association Richard J. Mark, Ameren Illinois James P. Torgerson, UIL Holdings Corp. Kevin Marsh, SCANA Corp. Craig E. White, Philadelphia Gas Works CHIEF FINANCIAL & ADMINISTRATIVE OFFICER John McAvoy, Consolidated Edison Inc. Kevin M. Hardardt, American Gas Association

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 NOVEMBER 2015 IN THIS SECTION Agreement brings together Southern Company and AGL Resources 6 FERC publishes best practices communications manual 7 Convenient kiosks catch on with customers 7 AMERICAN GAS

Sniffasaurus appeared at Omaha, Nebraska’s Werner Park to help promote safety on behalf of Metropolitan Utilities District. Inset: Energy Underground offers materials such as an activity book and game-filled website. PHOTOS COURTESY OF MOORE SYNDICATION PHOTOS COURTESY

SNIFFY’S UNDERGROUND A cheerful yellow dinosaur teaches kids about gas safety A new turnkey program from Moore Syndica- ground is tailored to a specific utility, with logo tion that’s used by natural gas utilities such as branding throughout the materials and website. Alagasco features a kid-friendly dinosaur to Each Energy Underground site includes a teach children about gas safety and efficiency. custom URL, as well as reports on distribu- Called Energy Underground® (www.energy tion, website tracking and other activities each underground.com/demo), the program features month. Moore Syndication also performs Sniffasaurus® or “Sniffy”—a yellow prehistoric school research, curriculum standards research, mascot clad in overalls and a hard hat. By storage, distribution and analytics. combining an educational website, customized “Natural gas education is important because letters to schools and handouts for students, it teaches young consumers the benefits of the utilities can use the campaign to teach children product and safe habits while also providing about energy efficiency, safety and the benefits the utility a great introduction to its future of gas products. ratepayers,” Pam Moore, president of Moore As a turnkey program, Energy Under- Syndication told American Gas. —Adam Folk

NOVEMBER 2015 AMERICAN GAS 5 INDUSTRY stretching from Florida to New Jersey. It would DIGEST include more than 80,000 miles of gas pipelines Major Merger and about 200,000 miles of electrical lines. AMERICAN GAS Two years ago, Piedmont Natural “For some time we have expressed our desire Gas set a goal to convert 30 per- Agreement brings together Southern to explore opportunities to participate in natural cent of its own fleet to natural gas Company and AGL Resources gas infrastructure development,” Fanning said. vehicles powered by compressed “With AGL Resources’ experienced team operat- natural gas, and it’s nearly there. he proposed merger of two energy behe- ing premier natural gas utilities and their invest- According to the most recent moths will create the second-largest utility ments in several major infrastructure projects, data, Piedmont has con- Tin the United States. this is a natural fit for both companies.” verted about 300 vehicles A landmark $12 billion deal between AGL Meanwhile, AGL Resources Chairman, or 28 percent of the fleet to Resources, one of the nation’s largest natural President and CEO John W. Somerhalder II said NGVs, displacing the equivalent gas companies, and Southern Company, the the merger would offer new opportunities for of 200,000 gallons of gasoline. Southeast’s dominant power company, will customers and shareholders. The energy company is also help- include 11 electric and natural gas distribution “Importantly, both companies are committed ing commercial and private NGV companies. In all, the company will serve about to safely delivering clean, reliable, affordable owners go green with its network 9 million customers with a power-generating energy while providing customers with world- of public CNG refueling stations, capacity of 46,000 megawatts. class service,” Somerhalder said. “The respec- including its 10th station, which In August, Southern Company announced tive models of Southern Company and AGL recently opened in Anderson, it plans to acquire the natural gas company. The Resources focus on the fundamental values of South Carolina. “More businesses deal is expected to put both companies in a bet- safety, operational excellence and environmental are choosing natural gas because ter position to provide natural gas infrastructure stewardship.” it is an economical and environ- to meet customers’ energy needs, according to a The approval of the merger hinges on the mentally responsible alternative to press release. approval of AGL Resources shareholders and gasoline and other transportation “As America’s leader in developing the full state and other regulatory commissions. It must fuels,” said Karl Newlin, senior portfolio of energy resources, we believe the also clear the reporting requirements under the vice president and chief financial addition of AGL Resources to our business Hart-Scott-Rodino Antitrust Improvements Act officer for Piedmont Natural Gas. will better position Southern Company to play of 1976. “Providing greater access to this offense in supporting America’s energy future Both companies hope to complete the abundant, low-cost energy source through additional natural gas infrastructure,” transaction by the second half of 2016. Until is an important part of Piedmont’s said Southern Company Chairman, President the transaction is complete, Southern Company larger commitment to growing and CEO Thomas A. Fanning. and AGL Resources will continue to operate as CNG as an alternative transporta- The merger would create a service area separate companies. tion fuel.”

The Gas Technology Institute recently partnered with the Florida State College at Jacksonville Fire Academy to educate and train 150 community members and first responders on the importance of liquefied natural gas awareness. The training program was a collabora- tive effort, with funding coming from companies active in the LNG industry, including TOTE’s Sea Star Line, JaxLNG and Eagle LNG Partners, among others. GTI has been well-known for decades for its focus on training and educational programs to ensure first

6 AMERICAN GAS NOVEMBER 2015 DIGEST

PIPELINES the progress of the project through the Commis- responders are well-equipped for sion’s process and any state processes. natural gas-related incidents. “Ultimately, we believe better communica- How to Win Friends tion and education will lead to decisions and Five years of study have led FERC publishes best practices actions that ensure the highest levels of envi- a team of researchers at the communications manual ronmental protection, provide opportunities Colorado School of Mines to for public participation, and improve timely develop an affordable and he Federal Energy Regulatory Commission processing for infrastructure projects in order to efficient ceramic fuel cell has published a new manual to help com- meet the public demand for energy,” it said. technology that could mean Tpanies speed the development of natural a breakthrough for residen- gas infrastructure by offering tips on communi- tial consumers. “Our work cating with the public. demonstrates a proton-conducting At 32 pages, the manual offers developers CUSTOMER SERVICE ceramic fuel cell that generates advice on everything from reaching out early electricity off of either hydrogen to key stakeholders before a pipeline route is or methane fuel and runs at decided, to visiting landowners and listening to Quick Pay much lower temperatures than local concerns. Convenient kiosks catch on with customers conventional ceramic fuel cells,” According to the guide, being proactive said team leader Professor Ryan “provides an opportunity and a means for the novel way for DTE Energy customers to O’Hayre. This new technology Commission’s staff to involve the public early.” access their accounts has quickly become would allow for natural gas to be Early action “also reduces the time it takes to A the company’s fastest-growing bill pay- converted into electrical energy develop the record on which the Commission ment option. for short-range use. makes its decision while ensuring the highest Located mostly in payment centers and levels of environmental protection and public Rite Aid stores in Detroit, the company’s bill- After only three years, the Interior participation,” the guide said. payment kiosks have attracted more than Energy Project—a program to FERC’s guide comes as public response 131,000 customers since their launch in 2014. bring natural gas service to resi- against pipelines and LNG facilities have made it In July 2015 alone, almost 15,000 customers dents in Fairbanks, Alaska—has more costly to build infrastructure. Some protes- accessed the kiosks—which give customers real- completed Phase 1 of the tors have recently interrupted FERC meetings. time access to their natural gas and electric ac- project with the construc- A key suggestion is for companies to involve counts. DTE customers can pay their natural gas tion of 70 miles of pipeline. local stakeholders well before plans are set. and electric bills with credit cards, debit cards, “A year ago, July 1, we owned a It suggests holding open house meetings to cash or check. As an alternative to authorized pencil and some paper clips, and formally introduce a project to stakeholders, pay agents who charge service fees, the kiosks are now we’re ordering 80 miles of creating a monthly newsletter to provide up- free. They also apply the balance to the account pipeline,” said Project Manager dates on the work and printing posters, writing immediately, which helps customers avoid late David Prusak. “This project is a press releases and distributing information kits fees and power shut-offs. Plus, an easy-lookup game changer.” The next step of to the media. Companies must also keep their option lets customers access their accounts with- the project is to coordinate gas dis- level of involvement going throughout the life out a bill or account number. tribution with the Alaska Industrial of the project—working to ensure stakeholders In a press release, David Johnson, DTE Energy Development and Export Authority are well-informed and involved. That back and vice president of customer service & marketing, and Fairbanks Natural Gas LLC. forth also leads to valuable information from said the company is constantly looking for ways community members, the manual said. to make their customers’ lives simpler. The Federal Energy Regula- While applying to the Commission, compa- “Our customers told us they would like more tory Commission has authorized nies should encourage the public to register on- options to pay their bills,” Johnson said. “The Excelerate Energy and its partner line to view the records in order to stay abreast kiosks provide an ideal option for thousands of Puerto Rico Electric Power Author- of changes in the process, but they should also our customers who need to pay their energy bills ity to construct and operate the not assume that the public is doing so. with cash, or who lack reliable transportation to Aguirre Offshore GasPort Project The manual suggests that companies “con- travel to a payment center.” off the coast of Puerto Rico. FERC tinue updating websites, issuing press releases, The kiosks were developed in conjunction confirmed the project will have no providing supplemental mailings/notices and with the Michigan-based company DIVDAT. significant environmental impact, direct communications as necessary to ensure Since the initial rollout, the number of kiosks and the facility’s presence stakeholders and the general public are aware of has grown from five to 25. Continued on page 8

NOVEMBER 2015 AMERICAN GAS 7 DIGEST

Continued from page 7 “The team at DIVDAT used its expertise to Piedmont Natural Gas Inc. received a score of will lead to lower fuel costs create a convenient, easy-to-use tool that elimi- 766. Frank Yoho, senior vice president and chief and improved air quality nates wait times and has a 98 percent customer commercial officer, said the company was grateful AMERICAN GAS as a result of barge traffic satisfaction rate,” Johnson said. to be recognized as a most-trusted brand. reduction. “The order repre- Many of the drugstores are open 24 hours “We work every day to provide safe and reli- sents an important milestone in a day, seven days a week for added customer able natural gas services to our customers and the development of the project,” convenience. The kiosks are in addition to DTE communities,” Yoho said. “We could not have stated PREPA’s interim executive Energy’s smartphone payment app, which allows achieved this honor without the hard work of director Carlos Castro. “This proj- online payments with credit cards and checking our employees and the great partnerships we’ve ect is critical for PREPA to reduce or savings accounts. developed within our industry.” the cost of energy in Puerto Rico Meanwhile, Southwest Gas Corp., which and to reduce the emission of air serves nearly two million customers through- pollutants.” The final facility will out Nevada, Arizona and Southern California, be a floating liquefied natural CUSTOMER SERVICE received a score of 763. gas terminal, including a floating “Building customer trust is important for any storage and regasification unit organization, and as a natural gas utility, that and an underwater pipeline. Most Trusted trust is based on our commitment to providing AGA members are featured on survey of safe and reliable service to our customers,” said Columbia Pipeline Group has trusted utility brands John Hester, president and CEO of Southwest invested $10 billion in the Gas. “The Cogent Report reinforces Southwest Marcellus and Utica regions, merican Gas Association member with a particular focus currently utilities are ranked among the top on Southwest Pennsylvania Utica Aperformers of a recent survey of brand wells. The investment proj- trust. ects stand to triple the size TECO Peoples Gas, Piedmont Natural Gas INTERNATIONAL CORROSION CONTROL INC. of the company by 2020. Company Inc. and Southwest Gas Corp. were INTERPROVINCIAL CORROSION CONTROL COMPANY LTD. Industry Leaders … since 1957 Among the proposed projects in the top performers among natural gas utili- development over the next five ties in the 2015 Cogent Reports Utility Most years are 15 liquefied natural Trusted Brand survey. gas, midstream and interstate The report based its rankings on several pipeline expansion or new-build factors, including communication effectiveness, projects. The Columbia Gas community support, customer engagement, Specializing in the science of corrosion prevention, ICCC Transmission modernization customer focus, environmental dedication has been providing high quality products and engineering services program is included in the plan, and reliable quality. Utilities received a score for the Cathodic Protection/ which will expand the capacity Corrosion Control industry for over on a 1,000-point scale. The web-based survey, 50 years. of 12,000 miles of pipeline over which examined 125 natural gas, electric and Magnesium & Zinc Anodes • 15 years. The company spun off combination utilities across the country, received Impressed Current Anodes • Rectifiers/Junction Boxes • from NiSource in July. more than 25,000 responses from residential Pipeline Cleaning Swabs • utility customers. Cadweld/Thermoweld Products • Monolithic Isolating Joints • amp Trillium LLC, a combined With a score of 767, TECO Peoples Gas Pipeline Coatings • effort of ampCNG and Trillium was the highest-ranked natural gas utility. Contact ICCC for competitive CNG, recently announced the TECO Peoples serves more than 354,000 pricing and “on-time” delivery. opening of a new public- customers and is Florida’s largest natural gas access compressed natural distribution company. gas station in Newport, “We are proud to be recognized by our cus- E-mail: [email protected] Tennessee. Conveniently lo- tomers as a trusted brand,” said Bruce Narzissen- Central Fax: 905-333-4313 cated on W. Highway 2570 near feld, vice president of customer service, business I-40, the station will provide development and fuels operation for Tampa CNG-powered trucks and cars Electric & Peoples Gas, in a press release. “We with easy access to fuel as they work hard to deliver reliable and affordable travel through eastern Tennes- energy with a strong focus on customer service www.Rustrol.com see. The station will have the that exceeds customer expectations.”

8 AMERICAN GAS NOVEMBER 2015 DIGEST

Gas’s commitment to our customers and the process from start to finish, ultimately increasing capability to fuel multiple Class-8 community-at-large, and also gives us incentive their knowledge of the microbial life within the trucks simultaneously with Tril- to continue efforts to increase their trust level in kilometer-deep biosphere of the black shale near lium CNG’s proprietary fast-fill our company.” Morgantown, West Virginia. hydraulic intensifier compressors, Mouser said the researchers will hunt for which efficiently pump up to 12 small organisms that may possess chemical com- gallons per minute. This marks pounds to make the shale more porous—simpli- CNG station No. 22 for amp SCIENCE fying the extraction process. Trillium, which plans to open at “Indigenous and introduced communities least 100 stations throughout the can corrode well materials, produce products that United States. Little Workers foul the gas [e.g., sulfides] and clog the fractures Beneficial microbes could make gas through normal growth,” Mouser told Ameri- Bryant Park in New York City is one extraction easier can Gas. “Studying how the energy extraction of the few places left in the Big Ap- process influences the microbes in these wells and ple with a little green, and the last A team from two top universities is probing learning more about their physiology can help building to have the park as a primordial habitat that exists deep within the us understand how to control for detrimental its front yard is going even Earth and is one of the most productive gas and microbes that might harm infrastructure or lower greener: It runs on natural oil reserves on the planet. The researchers—from extraction efficiency. Conversely, certain mi- gas. At 7 Bryant Park, the 30-story Ohio State University and West Virginia Univer- crobes may produce natural metabolites that are building will house organizations sity—hope to learn more about rarely examined useful to industry [e.g., biosurfactants], which like the Bank of China, which life forms with the potential to make pumping can improve the solubilization of hydrocarbons.” secured a deal to reside in the first gas and oil easier. Drilling began at two production wells and a to 14th floors, as well as the 28th. Paula Mouser is an Ohio State University assis- science observation well in June. The researchers will Along with natural gas, the building tant professor and one of the investigators for the use the science well, which is sandwiched between will also host a cogeneration plant Marcellus Shale Energy and Environment Labo- the two production wells, to gather information to to reuse lost heat, a stormwater ratory—a five-year, $11 million project to study help optimize well placement and hydraulic fracture reclamation system and a recycling the shale gas resources. The project, or MSEEL for design within the Marcellus Shale. Meanwhile, center. With all of these green short, was launched by West Virginia University in other members of the team will monitor activity amenities, it’s no surprise 7 Bryant fall 2014 in partnership with the National Energy during the fracture of the production wells. They Park was honored with the U.S. Technology Laboratory of the U.S. Department plan to extract 100 feet of whole core and 50 one- Green Building Council’s second- of Energy, Ohio State University and Northeast inch sidewall cores for geochemical, geophysical and highest ranking for green efficiency, Natural Energy. Scientists and their collaborators microbiological investigation, according to a U.S. the LEED Gold certification. in the gas industry plan to study the gas-extraction Department of Energy press release. The National Oceanic and Atmo- spheric Administration is keeping Samples taken during sidewall core drilling are bagged a close watch on the Pacific Coast, at MSEEL before transport to Ohio State University for as the organization has predicted decontamination. that 2016 will usher in the strongest-ever El Nino weather patterns. El Nino weather systems tend to bring warmer and drier winters to the northern areas of the country, while the Southwest stands to experience a cooler and wetter winter season. With these potential changes in winter weather, the natural gas industry could be af- fected, as demand for the fuel in the Midwest and the Northeast may not be as high if temperatures aren’t as drastic as in previous winters. Continued on page 10 PHOTO COURTESY OF REBECCA DALY PHOTO COURTESY

NOVEMBER 2015 AMERICAN GAS 9 DIGEST

Continued from page 9 STORAGE U.S. natural gas companies store excess fuel in Public Gas Co., a subsidiary several underground facilities, including depleted of Gas Natural Inc., is selling Salting It Down natural gas or oil fields, aquifers, mines, hard-rock AMERICAN GAS its natural gas utility business to caverns and salt caverns. Most is stored in depleted Kentucky Frontier Gas LLC, which Companies are taking a new look at production fields, which are typically close to areas currently serves about 4,000 salt facilities of consumption, existing wells, gathering systems customers in Floyd and Pike and pipeline connections, according to the EIA. counties in Eastern Kentucky. The ompanies are increasingly turning to But companies are giving salt caverns another sale of the utility is just one salt facilities to store excess natural gas, look. According to the EIA, the volume of natu- step in the parent company’s Caccording to a recent report by the U.S. ral gas used for power generation is rising, and plan to engage in alternative Energy Information Administration. gas is used more often to meet summer electric- markets. “With the proposed While salt facilities—most of which are ity demand and during sudden demand spikes sale of our Kentucky utility, along located in the Gulf Coast region—make up only caused by weather. with the pending sale of our 10 percent of storage capacity in the continental Salt facilities allow companies to extract natural Pennsylvania business and the United States, they provide 28 percent of the na- gas more swiftly, meaning they can take advantage recent divestiture of our Wyoming tion’s daily deliverability, the amount of gas that of short-term fluctuations in the price of gas, ac- operations, we have measurably can be withdrawn from a storage facility in a day. cording to the report. Companies holding gas in advanced our plan to rationalize “Salt facilities are underground caverns that traditional storage facilities might also be less likely noncore assets,” said Gas Natural operate under high storage pressure and can to respond to gas price fluctuations because they CEO Gregory Osborne. “We plan provide much higher deliverability than other risk reducing their storage levels in the summer to redeploy the capital from the natural gas storage options such as depleted fields and may have less gas available in the winter. sales to markets where we can or aquifers,” the report said. “Natural gas stored “Although salt facilities are more expensive to focus on growth.” in salt facilities can also be drawn down and re- construct and use on a per-unit-of-capacity basis, filled, or cycled, as many as a dozen times a year, their increased flexibility allows operators to more while gas stored in traditional depleted fields or quickly adapt to changing market conditions,” aquifers generally cycles only once a year.” the report said. WE’VE GOT THIS.

What’s this? It’s us, working better, smarter and safer than the other guys. Because there’s nothing more important than knowing you’ve hired the right crew for the job. That’s why doing our best work every time isn’t a goal. It’s a given. WWW.SNCOMM.COM

10 AMERICAN GAS NOVEMBER 2015 American Gas Association and Edison Electric Institute are combining their customer service conference with CS Week effective for the 2016 Conference in Phoenix

Registration opens November 15

As the premiere utility education conference, CS Week proudly offers the following venues:

CS Week Conference with 60+ workshops organized around the customer service lifecycle

CS Week College

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NOVEMBER 2015 AMERICAN GAS 11 BY THE NUMBERS

Are companies in the utility sector ready for the dangers of today’s interconnected world? Cyberattacks against power and utility companies have soared in the past year, according to a recent report by PricewaterhouseCoopers.

CYBER INCIDENTS ON THE RISE THE FASTEST-GROWING SOURCES OF CYBER INCIDENTS

Power and utility companies that responded to PwC’s Global State of Attacks by organized crime, nation-states and activists may Information Security® Survey 2015 reported huge increases in security be less frequent, but they are among the fastest-growing incidents—600 percent over 2013 numbers, totaling more than 20 threats. Activists and “hacktivists” often seek to embarrass incidents per day per organization. But even as attacks have increased, companies to further their own social and political agendas; the financial losses associated with the attacks have fallen considerably. nation-states seek trade secrets in an attempt to gain Why? According to PwC, companies have also boosted security spending political and economic advantages; meanwhile, criminals by 25 percent, allowing them to act more quickly and mitigate incidents look for any valuable data and quickly try to sell it. before causing financial harm.

7,391 8K

6K 3M Foreign $2.4 M Nation-States

4K 2M 118 % $1.2 M

1,179 1M

2013 2014 2013 2014 Average Number of Estimated Total Detected Incidents Financial losses

48 % Information Brokers

A CLOSER LOOK Who’s behind these cyber incidents? Surprisingly, most come from within the company itself, with service providers, consultants and contractors also contributing a sizable percentage.

38% 40% Activists/Activist Organizations/ 30% 40 % Hacktivists 30%

17% 20% 14%

31% Organized Crime 2014 2014 2014 2014 Current Former Hackers Current Service Employees Employees Providers/ Consultants/ Contractors

Source: The Global State of Information Security® Survey 2015, www.pwc.com/gx/en/issues/cyber-security/information-security-survey/industry/power-utilities.html

12 AMERICAN GAS NOVEMBER 2015 PEOPLE NW Natural has appointed David H. Anderson as innovative services. He replaces Roger Woodworth, president of the company. Anderson will also continue who will now lead initiatives at Avista Development to serve as NW Natural’s chief operating officer. Previ- in support of economic development within Avista’s AMERICAN GAS ously, Anderson had served as executive vice presi- utility service areas. dent of operations and regulations and as senior vice president and chief financial officer upon joining NW Tim Watson has been named executive vice president and CFO at AltaGas Ltd., replacing Deborah Stein. Anderson Durian Natural in 2004. He is also a past chair of the Ameri- can Gas Association Finance Committee and Fiscal Stein assumes the new role of executive vice president until her retirement on March 31, 2016. and Tax Committee. Fortis Inc. subsidiaries Tucson Electric Power Gas Natural Inc. has named Vince Parisi as chief Co. and UniSource Energy Services have appoint- counsel and Todd DiSanto as internal auditor. Parisi ed Susan Gray as vice president of T&D operations joins Gas Natural from IGS Energy, an independent and engineering, Jo Smith as vice president of public multi-state natural gas and electricity supplier. DiSanto policy and as vice president of cus- Krasselt Watson Catherine Ries comes to Gas Natural from Associated Estates Realty tomer and human resources. Corp., a multifamily real estate investment trust. Public Service Enterprise Group Inc.’s Caroline At Alliant Energy Corp., Robert Durian has been Dorsa plans to retire as executive vice president and promoted to vice president, chief accounting officer CFO in the fourth quarter of 2015. and controller. At Xcel Energy, George Tyson II has been appointed At Avista Corp., Ryan Krasselt replaces Christy to a newly created senior vice president, corporate de- Tyson II Van Abel Burmeister-Smith, who has retired as vice president, velopment position. He currently serves as senior vice controller and principal accounting officer. Addition- president and treasurer of the company. Brian Van ally, Ed Schlect joins Avista as vice president and chief Abel, the current assistant treasurer, succeeds Tyson as strategy officer, overseeing growth opportunities and vice president and treasurer.

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NOVEMBER 2015 AMERICAN GAS 13 PLACES NOVEMBER

4–6: AGA Operations Best Practices 20: NYSSA 2016 Presentation, New York, GAS TECHNOLOGY Roundtable: Collection and Mainte- NY. Contact Liliana Fonnoll, 202/824-7021, nance of As-Built Documentation, Plano, [email protected] INSTITUTE EVENTS TX. Contact Mike Bellman, 202/824-7183, 25–28: AGA Transition Measurement [email protected] FEB 22–26 Committee, San Diego, CA. Contact Ali Qurai- Pipeline Safety Regulatory 9–11: AGA/EEI Taxation Committee shi, 202/824-7337, [email protected] Compliance. Venue TBD. Orlando, FL. Meeting, Las Vegas, NV. Contact Joe Martin, Susan Robertson, GTI, 847/768-0783; 202/824- FEBRUARY 2016 [email protected]; 7255, [email protected] www.gastechnology.org/training 16–17: Board of Directors Meeting, 15–18: AGA/EEI Fall Accounting Confer- Washington, DC. Contact Gary Gardner, MAR 14–18 ence, AGA Accounting Services Commit- 202/824-7270, [email protected] Measurement & Regulator tee/EEI Corporate Accounting Commit- Station Design. Hampton Inn & tee/EEI Property Accounting & Valuation MARCH 2016 Suites—Chicago Downtown, Chicago, IL. Committee Meeting, Phoenix, AZ. Contact Susan Robertson, GTI, 847/768-0783; Doug Allen, 202/824-7261, [email protected] 14–16: AGA Finance Committee Meet- [email protected]; ing, Denver, CO. Contact Liliana Fonnoll, www.gastechnology.org/training 16–17: AGA Executive Leadership 202/284-7021, [email protected] Safety Summit, Washington, DC. Contact APR 11–15 Andrew Lu, 202/824-7341, [email protected] Gas Controller Training for APRIL 2016 Distribution &Transmission. JANUARY 2016 Hampton Inn & Suites—Chicago 18–19: AGA Operations Spring Commit- Downtown, Chicago, IL. Susan 19–21: Operations Best Practices Kick- tee Meetings, Phoenix, AZ. Contact Debbie Robertson, GTI, 847/768-0783; off Meeting, New Orleans, LA. Contact Mike Ellis, 202/824-7338, [email protected] [email protected]; Bellman, 202/824-7183, [email protected] www.gastechnology.org/training

STATEMENT OF OWNERSHIP U.S. POSTAL SERVICE STATEMENT OF OWNERSHIP, MANAGEMENT AND CIRCULATION natural gas industry 1. Publication Title: American Gas. 2. Publication No.: 1866-0. 3. Filing Date: 10/01/2015. 4. Issue Frequency: Monthly, except bimonthly in August/September and December/January. 5. No. of Issues Published Annually: 10. 6. Annual Subscription Price: $59/$110. 7. Complete Mailing Address of Known Office of Publication: 400 No. Capitol St. NW, Washington, D.C., 20001-1511. 8. Complete TRAINING Mailing Address of Headquarters or General Business Office of Publisher: same. 9. Full Names and Complete Mailing Address of Publisher, Editor-in-Chief and Managing Editor: Tracy Burleson, 400 No. Capitol St. NW Washington, D.C., 20001-1511. 10. Owner: American Gas Association, 400 No. Capitol St., 4th Floor, Washington, D.C. 20001-1511. 11. Known Bondholders, Mortgages and Other Security Holders Owning or Holding 1 Percent or More of Total Amount of Bonds, Mortgages and Other Securities: none. 12. Tax Status: The purpose, function and nonprofit status of this organization and the exempt status for federal income tax purposes has not changed in the preceding 12 months. 13. Publication Title: American Gas. 14. Issue Date for Circulation Date Below: 10/01/2015. 15. Extent and Nature of Circulation a. Total No. of Copies (Net Press Run): 12,008; 12,150. b. Paid Circulation. (1) Mailed Outside-County Paid Subscriptions Stated on PS Form 3541 (Includes Advertisers’ Proof and Exchange Copies): 10,331; 11,476. (2) Mailed In-County Paid Sub- scriptions Stated on PS Form 3541: 0. (3) Paid Distribution Outside of the Mails, Including Sales Through Dealers and Carriers, Street Vendors, Counter Sales and Other Non-USPS Paid Distribution: 0. (4) Paid Distribution by Other Classes of Mail Through the USPS: 0. c. Total Paid Distribution [Sum of 15b (1), (2), (3) and (4)]: 10,331; 9,750. d. Free Distribution By Mail or Outside the Mail: 1,368; 174. e. Total Free or Nominal Rate Distribution: 1,368; 174. f. Total Distribution [Sum of 15c and 15e]: 11,699; 9,924 g. Copies Not Distributed: 291; 174. h. Total [sum of 15f and 15g]: 11,990; 10,098. i. Percent Paid [15c/15fx100]: 88.30%; 98.25%. I certify that all information furnished on this form is true and complete. I understand that anyone who furnishes false or misleading information on this form or who omits material or information requested on the forms may be subject to criminal sanctions (including fines and imprisonment) and/or civil sanc- gastechnology.org/training tions (including civil penalties). —Tracy Burleson, publisher and editor-in-chief

14 AMERICAN GAS NOVEMBER 2015 state watch PENNSYLVANIA

NEW ENGLAND

NEW YORK

PENNSYLVANIA MINNESOTA Career Growth WASHINGTON Effort connects military veterans to energy jobs in Pittsburgh ALASKA

PITTSBURGH—Military veterans possess the training, experience and teamwork skills that can make CALIFORNIA them highly effective in energy and manufacturing jobs, and a unique public-private partnership in Pitts- burgh is planning to build on that. U.S. Department of Energy Secretary Dr. Ernest Moniz and federal officials from the U.S. Departments of Defense, Labor and Veterans Affairs met with energy sector CEOs in the Pittsburgh region this past summer at a roundtable discussion convened by the Energy Alliance of Greater Pittsburgh, a partnership of energy sector-related businesses, universities and organizations under the Allegheny Conference on Community Development and Innovation Works. Roundtable participants agreed to focus on career awareness, assessment and training programs at up to four military installations; increase recruiting of un- and underemployed veterans already in the Pitts- burgh region; and pursue creation of an interagency Energy Workforce Institute that would bring federal agencies together with universities, schools, industry and labor representatives, workforce development practitioners and apprenticeship programs across the Pittsburgh region to expedite training and hiring for energy and related manufacturing jobs. The Pittsburgh region currently has some 2,500 open jobs in high-demand energy and related manufacturing occupations with more expected as baby boomers retire, Linda Topoleski, vice president of workforce programs and operations at the Allegheny Conference, told American Gas. —Carolyn Kimmel

Left to right: Robert Agbede, Chester Engineers; Bryan Iams, PPG Industries; Dr. Ernest Moniz, U.S. Department of Energy; Nigel Hearne, Chevron; Morgan O’Brien, Peoples Natural Gas; Venke Sharma, Aquatech International; and Daniel Roderick, Westinghouse Electric, recently attended a roundtable discussion on veterans and energy jobs. PHOTO COURTESY OF ALLEGHENY CONFERENCE ON COMMUNITY DEVELOPMENT PHOTO COURTESY

NOVEMBER 2015 AMERICAN GAS 15 state watch

NEW ENGLAND spokesman for the coalition, told American Gas. “Energy markets in New England are send- ing positive signals with many projects that Basic Economics have been proposed, but they are met with tremendous opposition by local community Study predicts harsh consequences if groups, environmental organizations, even energy infrastructure isn’t built the Massachusetts state legislature, in the case of Northeast Energy Direct, which is seeking BOSTON—New England’s six states are facing sig- reconsideration from FERC,” Gustin said. nificant economic consequences if energy infrastruc- The coalition doesn’t champion any one ture doesn’t improve over the next five years, says energy source or infrastructure over another, he a study commissioned by the newly formed New said, adding that it isn’t a viable economic op- England Coalition for Affordable Energy. tion to insist on one and not look at all types of Higher energy costs for households and busi- infrastructure, including natural gas pipelines, nesses between 2016 and 2020 of $5.4 billion, a wind generation, electricity transmission lines reduction in disposable income that could top $12 and nonrenewable generating plants. billion and 167,600 jobs lost or not created are “What makes New England somewhat dif- among the predictions of the study, conducted by ferent is that we don’t have any resources within Boston consulting firms La Capra Associates and the region; we bring everything in,” he said. Economic Development Research Group. “We are a relatively small area with six states but The main driver of the current crisis is the many jurisdictions and a strong sense of local increase in demand for natural gas for power community in these types of conversations.” generation, with some increase in home heating Businesses and residents are feeling the demand. There’s also a lack of new transmis- economic effects of the overloaded infrastructure, sion that would allow New England to tap into Gustin said. additional hydro power resources in Canada “Affordability is much more of a concern and planned or announced wind power projects here than reliability,” he said. “New England in remote areas of New England, Carl Gustin, governors, state energy officials and businesses

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16 AMERICAN GAS NOVEMBER 2015 throughout the region have been expressing to take advantage of cheaper natural gas prices by their concerns over the past several years.” converting to CNG,” said John Nahill, president The coalition, composed of business and labor and co-founder of XNG. “By saving on fuel costs groups advocating for more affordable energy for and securing long-term emissions reductions, the region’s consumers and businesses, plans to companies that make the switch will be better brief state energy officials and anyone else who is positioned to compete more effectively.” interested in learning more, Gustin said.

MINNESOTA NEW YORK A Unique Agreement Have CNG, Will Travel City and utility collaborate to deliver State’s first compressed natural gas natural gas facility opens in Manheim GRAND RAPIDS—In a pioneering effort to MANHEIM—Only seven months after con- help residents of certain neighborhoods save struction began, there’s a new state-of-the-art on energy costs, the city of Grand Rapids has compressed natural gas production facility and teamed up with Minnesota Energy Resources distribution terminal operating in Manheim Corp. to extend natural gas to neighborhoods on that’s the first of its kind in the state. opposite ends of town. The Manheim CNG Center, which can de- As part of the deal, the city is financing the liver natural gas to 45 trucks per day with an an- customers’ portion of the connection cost. Those nual peak capacity of 5.7 billion cubic feet, will who connect to the natural gas system will have provide CNG to businesses and municipalities five years to pay back their share to the city. hundreds of miles away that cannot sufficiently Back in 2000 when Grand Rapids Township be served from existing pipeline infrastructure. dissolved, the rural areas it encompassed became “With its advantaged pricing, emissions part of the city of Grand Rapids, but residents benefits and reduced maintenance costs, CNG there had no city sewer or water connections and is the clear choice for businesses looking to they were relying on fuel oil or propane as their lower operational costs and add long-term energy source, explained Grand Rapids City value,” said John Schultz, president of Direct Engineer Julie Kennedy. Energy Business, in a company press release. “We’ve been trying to get alternative fuel The new facility is a joint effort between Di- rect Energy Business, a leading energy provider in North America, and XNG, the operator of North America’s largest fleet of high-capacity composite CNG trailers. Together, they will accelerate the availability and benefits of natural gas to customers, resulting in potential savings of 20 to 40 percent on their primary fuel costs, according to Schultz. “Through our relationships with partners such as XNG, we’re focused on providing our customers turnkey CNG solutions to meet their needs. Today’s station opening reflects that commitment and will deliver an innovative President of Direct Energy Business John Schultz solution to energy challenges,” he said. (left) and XNG CEO John Nahill attended the ribbon cutting of New York’s first CNG production “XNG and Direct Energy Business are mak- facility and distribution terminal.

ing it easier than ever for New York companies DIRECT ENERGY CORP. OF ANTHONY VASSER, PHOTO COURTESY

NOVEMBER 2015 AMERICAN GAS 17 state watch

sources out to these neighborhoods. In an over- a resident can pay just $19.50 a month over five all average, we’ve been able to show a reduction years to pay off the connection fee, Kennedy said. in monthly energy costs by converting from “With this project, the city of Grand Rapids fuel oil or propane to natural gas,” Kennedy was in a unique position, offering to finance what told American Gas. would be considered the customer’s portion of the The main barrier to switching among natural gas expansion cost. We had to be creative residents in the neighborhoods of Remer- and came up with an agreement that met the city’s DeSchepper, Soldiers-Strader-McGuire and governances as well as public utility regulations for Stoeke-Maxwell was the Contribution in Aid of our company,” Pamela M. Sarvela, external affairs Construction or connection fee, which must be leader for MERC, told American Gas. “Was this paid up front, Kennedy said. unique for our company? Absolutely, I don’t know The amount that the city had to finance on of any other agreement like it. In the end, the goal behalf of the residents came down substantially was the same—provide residents with safe, reliable, before the agreement between the city and MERC affordable natural gas.” was executed, she said. The Minnesota Public Residents can expect to save between $300 Utilities Commission approved the company’s and $900 annually by switching to natural gas, proposed new customer extension model, which Kennedy said. provided for a 75-foot allowance for each resident in addition to changes in the recovery of construction cost. That meant each customer’s share decreased from $2,270 to $1,170. WASHINGTON Under the financing option offered by the city, Wait and See

State regulators urge risk-based hedging practices

OLYMPIA—Investor-owned gas utilities in Washington state recently got some recommendations on changing their hedging practices from state regulators. Rather than using programmatic hedging as their go-to method of operation, regulators suggest that utilities take a wait-and-see approach when it comes to market volatility, Danny Ker- mode, assistant director for water and transportation at the Washington Utilities and Transporta- tion Commission, told American Gas. “The hedging game is the difference between the market price and the locked price,” he said. “With programmatic hedging, which most every- one does, companies lock in a price systematically every quarter, totally blind to what the potential gain or loss may be. This new program is more robust; it reacts to the market.” In today’s flat market, hedging wouldn’t be necessary. However, by monitoring the market for signs of volatility, companies could imple- A crew from MERC digs out the ment hedging practices when necessary to tie-in for natural gas expansion to protect their tolerance to loss, Kermode said. the Strader neighborhood. The recommendations are contained in a study called “Natural Gas Utility Hedging PHOTO COURTESY OF MINNESOTA ENERGY RESOURCES OF MINNESOTA PHOTO COURTESY

18 AMERICAN GAS NOVEMBER 2015 Practices and Regulatory Oversight,” released ing utilities some assurances that what they do by the Washington Utilities and Transporta- within the parameters of this paper would not tion Commission and authored by Michael be construed as imprudent.” Gettings, senior partner of RiskCentrix LLC, Next, the commission plans to have one- in collaboration with commission staff and on-one meetings with regulated utilities to get the Washington State Office of the Attorney feedback before holding technical conferences General, Public Counsel Unit. to discuss the study and hear feedback from The impetus for the study was a 2013 com- utilities, industrial customers and consumer mission staff report that examined natural gas advocacy groups. hedging practices used by regulated natural gas local distribution companies. The new recommendations protect both the distribution company—from large losses ALASKA if the market price stays lower than the locked price—and the rate payers, who often find the difference passed onto them, Kermode said. Exempted “It’s a better way of risk management. It looks like Washington is unique in looking at this,” he said, State will have its own goals within EPA’s noting that the study was a rare opportunity to Clean Power Plan partner with the state’s public council. Historically, utilities have been hesitant to ANCHORAGE—Alaska Governor Bill Walker change practices for fear regulators will call it says he is encouraged that the Environmental an “imprudent risk” and not allow recovery of Protection Agency recognized his state’s unique losses, Kermode said. With this paper, he said, circumstances in not including the state in goals “We are removing the imprudent risk and giv- established under the agency’s Clean Power Plan.

NOVEMBER 2015 AMERICAN GAS 19 state watch

The plan establishes state-specific goals for officials to come up with appropriate goals for the the 48 contiguous states to limit carbon emis- state in the near future.” sions from larger public power plants. However, Walker has placed a high priority on making because of Alaska’s isolated energy infrastructure energy more affordable for Alaskans—some of and limited grid system, the EPA ruled there is whom pay 50 percent of their household in- not enough information on what reductions are come on energy costs—and says he is convinced feasible in Alaska to set goals here at this time. that Alaska can be “a leader in affordable, clean The EPA said there wasn’t enough informa- energy development.” tion on just how many carbon emissions could He had a chance to tout his ideas with Presi- be cut in plants that aren’t part of a large power dent Barack Obama, who paid a visit to Alaska grid, such as in Alaska. The agency instead said in early September. While there, Obama an- it will start working toward setting goals for nounced that the Denali Commission will serve Alaska in the near future. as the lead federal agency for building climate “Alaska has over 200 small utilities across resilience in Alaska, coordinating efforts among the state, and a very limited power grid on the federal, state, tribal and local governments along railbelt. Requiring our state to abide by ‘one-size- with regional and nonprofit partners to help fits-all’ standards could potentially increase our communities develop solutions to address the energy costs, which are already the highest in the impacts of climate change, including coastal nation,” Walker said in a statement released from erosion, flooding and permafrost degradation. his office. “I am pleased that the EPA has recognized the unique circumstances Alaska is facing, and I look forward to working with the agency CALIFORNIA

An NGV Rush For Locating Solutions New incentives promote NGVs in the Locate With Minimal trucking industry Excavation SACRAMENTO—The California Energy Com- mission is making more than $10 million available to California’s public and private nontransit fleet operators who want to purchase natural gas Locate Live vehicles through its Natural Gas Vehicle Incen- Gas Mains And tive Project. Plastic Service Lines So far $18.84 million worth of incentive requests have been received at the University of California, Irvine’s Institute of Transportation NO Blow By Studies, which is administering the project, prompting the commission to consider allocat- ing additional funding. “These natural gas vehicles will help California meet Governor Jerry Brown’s goal of reducing petroleum use in cars and trucks in half by 2030,” Locate Sewer Laterals & Cross Andre Freeman, transportation energy special- Bores From Above Ground ist for the California Energy Commission, told American Gas. “There is significant demand for these vehicles and for purchase incentives from the medium- and heavy-duty vehicle sectors. Custom- ers are still attracted to the price stability of natural 800.346.1956 gas as a fuel type compared with the perennial WWW.JAMESONLLC.COM fluctuations in petroleum prices. The California

20 AMERICAN GAS NOVEMBER 2015 PHOTO COURTESY OF SOCALGAS PHOTO COURTESY

Energy Commission expects major fleet manag- far, we have conducted three free workshops SoCalGas is hosting a series of heavy-duty trucking ers will continue to be interested in natural gas in Riverside, Bakersfield and Wilmington and workshops, featuring transportation experts from vehicles when it makes sense from an economic/ provided expert speakers from companies such Ryder System, Freightliner and Cummins Westport to discuss the benefits of fueling with proven business model standpoint.” as Ryder, Frito-Lay and Swift Transportation to natural gas technology. Left to right: Charles Haas, Southern California Gas said it is pleased share information about CNG trucks with par- Marci LaMantia, Mike Bolin, Jimmy Nevarez, Ed that the Energy Commission has validated the ticipants. The participants learn firsthand from Harte, Jesus Sosa and Carlos Leal. economic advantages and lower carbon emis- those who successfully operate CNG trucks in sions characteristics of natural gas. their business,” Schwecke said. “Natural gas is a proven clean energy solution In addition, SoCalGas will soon be launch- that can help fleet operators save money, clean ing an innovative “try before you buy” Truck our air and reduce greenhouse gases today,” Loan Program with Ryder that will allow heavy- Rodger Schwecke, vice president of customer duty truck operators to use natural gas-powered solutions at SoCalGas, told American Gas. “We Ryder trucks free of charge for up to two weeks, urge agencies in California and other state and Schwecke said. federal agencies to follow and increase incentives “Over the next year, we will also be con- for natural gas vehicles on par with those for structing new and upgraded compressed natural electric vehicles. We need all available solutions gas refueling stations at our company bases. to respond to environmental challenges.” These can be used by the general public and SoCalGas recently teamed with the California heavy-duty trucks to ensure our customers can Trucking Association to offer workshops and always get the fuel they need,” he said. webinars in a joint drive to inform the trucking The company is also actively working with industry—operators and owners—about the the trucking community to advance policies benefits of natural gas vehicles. and programs that make it easier for truckers to “The response has been outstanding. So adopt natural gas trucks, he said.

NOVEMBER 2015 AMERICAN GAS 21 COVER STORY THE TECHNOLOGY FACTOR

22 AMERICAN GAS NOVEMBER 2015 New technologies are making it easier for NGV owners to refuel right at home. THE TECHNOLOGY FACTOR

New technologies in the natural gas vehicle sector are paving the road for greater adoption by fleets and consumers. Here is an update on some of the latest innovations helping to deliver even lower vehicle emissions, improve refueling options and increase convenience. BY JULIA BAILEY PHOTO COURTESY OF SOUTHWEST GAS PHOTO COURTESY

NOVEMBER 2015 AMERICAN GAS 23 COVER STORY

ontinued innovation and benefits, the new engine offers economic (Methane Opportunities for Vehicular convenience is the answer benefits. “The cost-effective part is when Energy) is a U.S. Department of Energy for both commercial you start comparing this kind of near-zero project that is helping to fund projects and residential drivers emissions technology with an electric or designed to break through the barriers that interested in the many fuel-cell bus, which can run a million-and- limit the use of natural gas as a major fuel benefits of using natural a-half dollars, whereas a natural gas bus can source and to create practical, affordable gas as a transportation fuel. be $500,000. That’s where you’re going to storage tanks for passenger cars and at- And that is what the industry is delivering. see real bang for your buck.” home refueling stations. And thanks to CToday, researchers are continuing to explore new technologies to improve the efficiency and functionality of these vehicles. Meanwhile, there are more Kwik Trip, a regional convenience item and fuel provider, is part of the ongoing expansion of CNG compressed natural gas and liquefied fueling stations; it plans to offer the fuel at more natural gas refueling stations than ever than 30 locations in the Midwest. before, with new stations announcing openings every month.

An Emissions Evolution One of the most significant industry-related developments in recent history will offer major benefits to fleet trucks that accumulate high annual mileages (100,000 miles and more per year)—as well as to the environment. In California, where environmental regulations are the strictest in the nation, Cummins Westport—with funding support from South Coast Air Quality Management, Southern California Gas and the California Energy Commission—has made a significant investment in a new natural gas engine technology platform that will lower nitrogen oxide emissions to near-zero levels. NOx is a contributor to air pollution, and natural gas-powered engines offer superior emissions reductions than those powered by petroleum fuels. Known as the Near Zero NOx ISL G, the main applications

for this new engine will be transit buses and OF ANGI ENERGY SYSTEMS PHOTO COURTESY refuse trucks. Developed by a unique public/ private partnership, this new technology Sleek Storage a cost-share contract with the ARPA-E promises to be big news across the country. Another challenge of natural gas fuel is the MOVE program, REL Inc., a high-tech “Wherever there are fleets that want to amount of space that is needed to store material, testing and process-development run on really low emissions, whether their natural gas at high pressures. Natural gas company in northern Michigan, is tackling incentive is funding—or city, state or EPA storage tanks are typically bulky—large the challenge of natural gas fuel tank regulations—they will benefit from this cylinders with thick walls that enable them packaging. new engine technology,” said Rob Nietzke, to withstand those high pressures. While REL is working on a “conformable” tank president, Cummins Westport. “And it they fit adequately in trucks and buses, they design that can store high-pressure gas in the makes the same space claim as existing take up considerable space in the trunks of same location in the vehicle where gasoline is technology on the vehicle. It’s an easier way passenger cars. currently stored, while still providing enough to get near-zero emissions.” The ARPA-E (Advanced Research fuel to meet the desired driving range of the In addition to the environmental Projects Agency—Energy) MOVE vehicle. “We’re working to maximize the

24 AMERICAN GAS NOVEMBER 2015 range and minimize the compromise,” said Andrew Halonen, marketing, REL. “Our solution is to replace the cylinder with a box with an internal structure that enables high-pressure storage. The goal is to package natural gas so that it can conform to the available space. We’re starting with a rectangular shape—a 10-foot by 10- foot by 20-foot box that delivers 20 percent more gas than a cylinder of compa- rable size.”

Refueling Solutions According to NGVAmerica, the national trade organization for the NGV industry, there are now 1,564 CNG and 112 LNG stations operating in the U.S. “There is considerable investment happening to upgrade older stations to increase capacity and to New natural gas engine improve the fueling experience,” technology from Cummins said NGVAmerica President Mat- Westport is being piloted in thew Godlewski. “In addition, California and promises to bring new stations are being built across nitrogen oxide emissions the country—with a focus on to near-zero levels. OF PHOTO COURTESY CUMMINS WESTPORT creating a traditional fueling experience for the customer.” ANGI Energy Systems is one company that is helping to build up the country’s natural gas fueling infrastructure by providing the components for new natural gas fueling stations. One of the leading manufacturers and suppliers of CNG fueling equipment, ANGI has established relationships with Kwik Trip, a regional convenience item and fuel provider, to equip more than 30 locations with CNG fueling systems at locations in the Midwest. Other customers include TruStar Energy, Questar Fueling, Love’s Travel Stops & Country Stores, Trillium CNG and end users like Waste Manage- ment. “Most of our customers are owners and operators of the stations, the people who com- sell the fuel either on a retail, commercial pany, or on-site fueling basis,” said Jared Hight- which ower, vice president of sales at ANGI. The has been

NOVEMBER 2015 AMERICAN GAS 25 COVER STORY

Phoenix’s Fulton Homes has partnered with Honda and Southwest Gas to offer fully installed home refueling units for CNG. PHOTO COURTESY OF FULTON HOMES OF FULTON PHOTO COURTESY

26 AMERICAN GAS NOVEMBER 2015 “INNOVATION AND NEW TECHNOLOGIES HOLD THE PROMISE TO ACCELERATING THE GROWTH OF NGVS. THE FUTURE AHEAD IS EXCITING AND THE GROWTH OF NATURAL GAS AS A TRANSPORTATION FUEL IS JUST GETTING STARTED.”

-–Matthew Godlewski, President, NGVAmerica

in business for more than 30 years, offers a is a small compressor appliance that can be industry. “We’re proud to partner with broad line of products that includes all the mounted on a garage wall (or freestanding Fulton Homes to increase awareness and components needed for a functional CNG on a pedestal). market alternatives for compressed natural station. In Arizona, where nearly 4,000 registered gas vehicles, and home buyers who take “We bring innovation and believe we vehicles run only on CNG, a unique public- advantage of this upgrade will quickly real- add a lot of value in the way that we design private partnership is advancing the home ize the convenience and cost-effectiveness and integrate the system to work together,” refueling option with the Phill system. Fulton of being able to refuel their CNG vehicle in Hightower added. “The way we work with Homes, a forward-thinking homebuilder in the comfort of their own home,” he said. our customers is to provide a fully func- suburban Phoenix, is offering fully installed While the FuelMaker Phill is the most tioning system. It’s not just a box of parts.” Phill home units in garages at nearly 700 popular compressor currently available for Meanwhile, with approximately 60 homes in the builder’s Queen Creek Station at-home fueling, it could be an expensive million U.S. households equipped with a master-planned community for an upgrade proposition for some homeowners. Another natural gas line, it also stands to reason that fee of $6,000. major initiative of the ARPA-E MOVE there must be a way to tap into that natural Fulton Homes partnered with a local program has been to develop an affordable at- gas to fuel vehicles. Honda dealer and Southwest Gas, which home solution that would cost $500 per unit Affordable home refueling has been one serves natural gas customers in Arizona, and reduce the refueling time to less than one of the missing links to widespread public California and Nevada. “Homes that are hour (from up to eight hours, or overnight). adoption of NGVs. One of the challenges equipped with the Phill appliance will Researchers at Oregon State Univer- for home refueling is the fact that residen- receive a separate gas meter from Southwest sity think they have found the solution. tial natural gas is delivered at approximately Gas,” said Jose Esparza, vice president of “Their idea was one of the most interesting 0.25 psi pressure and CNG for use in energy solutions at Southwest Gas Corpo- compression concepts I’ve seen,” said Dr. vehicles must be stored at 3,600 psi, creat- ration. “The rate for natural gas will be the Jason Rugolo, director of ARPA-E’s MOVE ing the need for a compressor for any home residential rate, which costs less than the program. “They determined that it’s nearly refueling system. commercial rate and is much more afford- impossible to build a standalone com- The most popular and currently available than regular unleaded gasoline.” pressor for the price targets we set in the able technology is a compressor system According to Esparza, creating op- MOVE program. But they figured, since installed in garages that runs all night to re- portunities for residents in Southwest part of the engine’s job is to compress gases, fuel a vehicle’s tank. The Phill® system from Gas’ service areas to become more energy- there must be a way to use the engine to BRC FuelMaker, a leading manufacturer, efficient while saving money is vital to the compress natural gas for the vehicle itself.”

NOVEMBER 2015 AMERICAN GAS 27 Where natural gas goes, business follows. As expansion and replacement ramps up across the nation, utilities have a seat at a very

STATE REPORT important table. BY M. DIANE McCORMICK

EXPANSION EQUALS ECONOMIC DEVELOPMENT

ommissioner Brandon replacement programs. By 2015, the Rider, which was approved to allow annual Presley of the Mississippi numbers swelled to 40, while 37 states investments of up to $5 million on new Public Service Commis- also logged expansion projects. The efforts economic development projects, which sion used to hear about blend strategic thinking, comprehensive would earn a 12 percent return. highways when economic planning and partnerships forged with Economic development officials help development projects traditional and unlikely allies. Whether choose the sites, and today, five complete or were discussed, but then state-by-state leadership comes from near-complete Atmos projects are expected he noticed a shift. gas utilities, governors, utility to create about 3,000 jobs. C“Almost everything that came to my commissions or legislators, “It’s an investment in the desk or was talked about all had the same the movement heralds communities we serve,” said Bill element, which was how to get natural gas the role of natural gas Senter, division vice president, to this site or this industrial park,” Presley as a driver of economic rates and regulatory affairs, said. “We began to realize that was the development. Atmos Energy. “The goal is question on the minds, not only of new but to grow the economy here in [also] expanding industries, but there was MISSISSIPPI Mississippi and create jobs.” not a plan in place to deal with it.” A Seat at the Table The regulators’ job is “to Together, natural gas utilities and Seeing natural gas’ poten- make sure the infrastructure is regulators crafted solutions, and Mississippi tial to support economic in place to not only attract jobs joined the growing list of states taking in- development in the state, the and grow our communities, but also novative approaches to pipeline expansion Mississippi PSC asked utilities for “com- ease pressure on rates,” said Presley. “The and replacement projects—and boosting monsense approaches” to expansion, said more customers the gas company has, the economic development in the process. Presley. Among those responding, Atmos less all the customers have to pay in rates.” In 2012, 18 states had launched major Energy proposed its Supplemental Growth The SGR has “allowed us to have a seat

28 AMERICAN GAS NOVEMBER 2015 at the table at the front end” of economic “We could really start to dedicated GET Gas development projects, explained Bob Kerley, provide gas service or the engineering and design division vice president, marketing, Atmos opportunity to get natural team and hired more crew Energy. Gas companies work closely with gas service to, in most cases, workers and third-party state and regional economic and industrial hundreds of homes versus a contractors to complete development officials and other utilities, he pocket that got missed as the gas field work, Swope said. Plus, a said. “It’s not a competition between gas and service got built out.” patchwork of local ordinances and electric. Industries know what makes sense Balancing GET Gas projects with regular fees taught UGI “to nail down early what for various applications. It’s unified us as a service line extensions and replacements was the requirements are of the municipality and state and made us more effective in being straining the workforce, so UGI created a come to an agreement.” able to recruit these prospects.” In August 2015, the PSC approved a System Integrity Rider, establishing an annual process of reviewing Atmos’ pro- jected system integrity plans for the next fiscal year before those projects are actually undertaken. The commission also reviewed Atmos’ 10-year capital expenditures plans. The SIR, aligned with federal directives on pipeline safety and integrity, will help At- L O CUS VIE W mos ramp up its system-integrity spending from about $29 million a year in 2015 to more than $80 million in 2024. The timing is right because “other components of our gas bill are relatively low,” said Senter. “The commission has shown insight and an understanding of our industry,” he said. “The annual review process will give us the certainty we need to make these investments and ensure a safer system.”

PENNSYLVANIA TRACKING + GET(ting) Gas Where It Needs to Be TRACEABILITY Meanwhile, in the Marcellus state of Pennsylvania, lawmakers are showing “a FOR PIPES, lot of interest in expanding natural gas FITTINGS + service to residents and businesses,” said Joseph Swope, communications manager, FUSIONS. UGI Utilities Inc. “There’s obviously a very strong feeling that we ought to make sure our own citizens can take advantage of this resource that’s under our feet.” That interest manifested in instant de- Technology & services for turnkey mand—even more than can be accommo- implementation of mobile & GIS technologies dated—for UGI’s GET Gas, its five-year, B ECAUSE $75 million “pay to convert” pilot. GET Gas’ initial 18 projects targeted TRACEABILITY underserved areas, where clusters of homes MATTERS . lacked service amid neighboring streets and homes with natural gas, Swope said. Now, UGI is expanding into unserved municipalities, with a two-phase effort to reach about 400 homes. “It’s a different scope,” said Swope.

NOVEMBER 2015 AMERICAN GAS 29 STATE REPORT

gas committee, says the matter in the hazy Tacoma area, where NEW YORK integrity and reliability wood stoves are commonly used. Energy in the of the gas system is of “The bill itself spells it out,” said Empire State paramount importance. “In Kirschner. “There are economic, In 2012, New York New York, we are focused environmental and public health purposes. Governor Andrew Cuomo’s on ensuring we have a safe, Those are the three pillars and goals around comprehensive New York resilient and clean natural gas why we would extend these services to un- Energy Highway Blueprint system,” she said. or underserved areas.” concluded that accelerating capital, operation and maintenance spending on WASHINGTON OHIO natural gas infrastructure “will result in Asking the Right Questions The Value of Compromise enhanced reliability and safety for utility Across the country, when state Rep. Jeff Meanwhile, in Ohio, as companies explore customers while generating substantial Morris was preparing a bill to facilitate potential sites for new or expanded facilities, economic development benefits for the natural gas infrastructure expansion in “Utility infrastructure is critical to the State’s overall economy.” Washington State, he asked Northwest Gas selection process and is often a significant In response, the New York Public Association members what they needed capital consideration in the site development Service Commission probed policymakers during a conference call. process,” said David Koren, director, and interested parties for their views “And it was crickets. Just government affairs, Columbia on how to expand. Using a framework quiet. Silence on the other Gas of Ohio. “Ohio took a created from that order, the PSC initiated end of the line,” recalled progressive step forward to technical conferences to delve into issues association Executive mitigate those costs, and including customer contributions toward Director Dan Kirschner. Columbia Gas of Ohio construction and the use of technologies in “I just remember thinking strongly advocated for expanding natural gas infrastructure. they’d never been asked. a framework that could With information gleaned from the They didn’t even know support economic growth.” conferences, the PSC moved ahead with anybody was interested, and An initial legislative measure approval of gas expansion projects and pilot they hadn’t recently contemplated to prefund expansion projects met programs filed by most of the state’s natural what they might want to do with regard opposition from groups concerned about gas companies. An April 2015 proceeding to expanding their systems. It was a high additional gas charges and paying for projects also opened the door to cost-recovery hurdle to address.” that didn’t benefit them–“all valid concerns,” mechanisms, incremental to approved In time, Morris found answers and said Koren. “Our transparency and rate plans, that accelerate removal and sowed them into a legislative bill willingness to work with all replacement of natural gas infrastructure that set goals for expansion interested parties resulted in the no longer fit for service. PSC staff is also beyond existing replacement creation of a program that can working with utilities to identify anchor rates. The bill passed the boost economic development customers, especially heavy users of oil or state House and died at across the state.” coal, to improve the economics of gas main the end of a short Senate The resulting extension projects. session, but it inspired the compromise, HB 319, Now, the Empire State is implementing Washington Utilities and allowed natural gas utilities its 2015 New York State Energy Plan to Transportation Commission to recover their upfront coordinate Cuomo’s Reforming the Energy to investigate distribution spending. The bill’s mechanism Vision initiative and build a clean, resilient expansion infrastructure. for sparking economic development and affordable energy system. The earlier “Introducing a bill served as a catalyst put a $2 cap (per year per customer) on Energy Highway Blueprint activities feed for all these stakeholders to think about the customer bills for expansion to known gas into REV goals, and the PSC also works path forward and what we should be doing, users, and a $1 cap (per year per customer) with natural gas utilities on REV-specific now that we have this abundant energy for extension to Sites Ohio locations, initiatives, such as assuring that gas service resource at our doorstep,” Morris said. where state economic development officials tariffs aren’t barriers to customer-sited In workshops, regulators and natural certify that infrastructure expansion could generation. gas utilities explored existing line-extension heighten business activity. PSC Commissioner Diane X. Burman, policies and expansion incentives. They also In the legislature, prime sponsor who sits on the National Association discovered broader goals than originally Sen. Troy Balderson sold the bill on its of Regulatory Utility Commissioners envisioned, such as reducing particulate economic development benefits. “The

30 AMERICAN GAS NOVEMBER 2015 rider was held within a number that was customers that made the most sense.” and legislators share optimism over natural doable for people,” he said. “The return on Malloy’s response was his gas’ potential as the affordable choice for investment is much larger than the rider. Comprehensive Energy Plan, which homeowners and a strategic economic Your rider is worth the investment, just like became law in May 2013 and sparked development booster. Expansion can send any other business.” the East Hampton project, among other natural gas down “dirt and gravel roads” in “As doors open for expansion initiatives. Through regulatory changes, the Mississippi’s rural communities, reducing innovation, utilities across the state now plan allows utilities to finance conversions cost of living as effectively as giving a tax cut, have the ability to support economic and be repaid through added revenues from said the Mississippi PSC’s Presley. growth, engage in the economic new customers. Onboarding manufacturing, through development and site selection “It was really critical to combined heat and power and other process and attract new demonstrate the things we creative methods, is another driver that companies and jobs to can do collectively to satisfy natural gas distributors can explore, said Ohio,” said Koren. customer needs,” said Kyle Rogers, vice president of government West. “We have a lot of relations at the American Gas Association. CONNECTICUT smart customers. They As doors open for expansion innova- Meeting Demand will find solutions if we’re tion, gas companies have been given “a In May 2015, UIL not working constantly to good first bite of the apple, and it’s kind of Holdings Corp. broke provide alternatives that they on us to show that we’re using these dollars ground on its largest demand.” the right way, and we’re using them pru- expansion project in three The convergence of policy and dently, and they’re bringing in the benefit decades—a 10-mile stretch into its East market demand is fueling new growth that we think they can,” said Northwest Hampton, Connecticut, service territory. opportunities, and utilities should be Gas Association’s Kirschner. The line was designed to serve nine schools prepared to take advantage, said West. In the end, innovations aren’t limited to and municipal facilities, while making “It was a win-win because you now offer advanced pipe technology or new hardware conversion possible for 400 residents and customers another option. You’re also but are about “how to expand natural businesses along the route. helping to create jobs, and you’re talking gas infrastructure,” said Atmos Energy’s For several years, UIL’s gas companies about a fuel that’s domestic, within our Kerley. Regulators see expansion as a tool have been “fairly bullish on expansion borders and is environmentally friendly. to support economic growth, and the efforts,” said Michael A. West Jr., vice It’s a good all-around project that a lot of abundance and affordability of natural gas president corporate communications, UIL. folks worked on collectively, legislators and has “really changed the way people view Simultaneously, West said, Connecticut regulators, to make happen.” natural gas during the site selection process. residents began demanding natural gas, and The availability of natural gas is now a high Gov. Dannel P. Malloy “was sensitive to New Takes on Natural Gas priority for potential prospects. what he heard, trying to provide options to Looking ahead, natural gas utilities, regulators “It’s a whole new ballgame,” Kerley said.

“IT WAS A WIN-WIN BECAUSE YOU NOW OFFER CUSTOMERS ANOTHER OPTION. YOU’RE ALSO HELPING TO CREATE JOBS, AND YOU’RE TALKING ABOUT A FUEL THAT’S DOMESTIC, WITHIN OUR BORDERS AND IS ENVIRONMENTALLY FRIENDLY. IT’S A GOOD ALL- AROUND PROJECT THAT A LOT OF FOLKS WORKED ON COLLECTIVELY, LEGISLATORS AND REGULATORS, TO MAKE HAPPEN.”

-–Michael A. West Jr., vice president corporate communications, UIL

NOVEMBER 2015 AMERICAN GAS 31 STATE REPORT

WA 15 MT ME ND 10 VT OR MN 12 NH ID SD WI 5 9 NY MA CT WY MI RI 13 IA 11 PA NE NJ NV 3 OH 14 MD IL IN DE UT 16 CA 4 7 CO WV DC KS MO KY

NC TN AZ OK SC NM AR 6 AL GA MS

TX LA

AK 1 FL

ACTIVE EXPANSION POLICY OR POLICY BEING CONSIDERED

STATES WITH CONSIDERABLE EXPANSION AND REPLACEMENT ACTIVITY IN THE PAST YEAR

32 AMERICAN GAS NOVEMBER 2015 1 Alaska unfeasible extensions to economic- a natural gas utility can use to expand The Alaska Industrial Development development sites. service to areas without natural gas. and Export Authority board approved The working group is studying funding a loan to Interior Alaska Natural Gas 7 Nevada mechanisms, utility recommendations and Utility, or IGU, for $29.7 million to A new law signed in May 2015 project selection criteria. The commission advance natural gas distribution system directs the Nevada Public Utilities must report study results by September development in Fairbanks and North Commission to adopt regulations 15, 2016. Pole. IGU expects to put about 73 miles authorizing a public utility that buys of pipe in the ground to provide gas for natural gas for resale to expand the 13 Pennsylvania more than 140 multi-family/commercial utility’s infrastructure in a manner Since 2014, the Pennsylvania PUC structures and more than 2,100 consistent with a program of economic has approved three riders to make WA residential services. development. conversions more affordable. Customers of Columbia Gas, Peoples Natural Gas, MT ME 2 Connecticut 8 New Jersey Equitable Gas and Peoples TWP can pay ND In January 2015, Yankee Gas (now Elizabethtown Gas filed for approval monthly surcharges on their bills. Under VT Eversource) reported it had surpassed its of a neighborhood expansion program. UGI’s Growth Extension Tariff (GET Gas), OR MN 2014 goal of 5,200 new Connecticut Under the program, customers would pay customers connecting to new GET Gas NH ID customers by 300. That same month, a monthly fixed surcharge over a 10-year mains can apply part of their savings SD WI NY MA the Public Utilities Regulatory Authority period in lieu of an upfront contribution. toward a new surcharge. In November CT approved a settlement clarifying As of October 2015, the matter was 2014, UGI became Pennsylvania’s WY MI RI 2 expansion-related issues, including pending. first utility to connect distribution with 8 defining “portfolio view” projects, Utica Shale wells. The interconnection IA PA NE NJ the accuracy threshold, commitment 9 New York expanded natural gas supply to NV OH MD threshold and allocation of non firm The New York Public Service customers in two remote counties. IL IN DE margin credits. Commission approved the Partnership to UT CA Revitalize the Industrial Manufacturing 14 Virginia CO WV DC Illinois Economy of Western New York (Prime- A new law establishes a procedure KS MO 3 KY Ameren applied a main extension WNY) Program for National Fuel Gas for natural gas utilities seeking State tariff to a project to convert residents in the Distribution. The program will utilize Corporation Commission approval of NC village of Grantfork, Illinois, from propane shareholder funding to incentivize large system expansion plans. The plans can TN to natural gas. The tariff, developed by commercial and industrial customers to include schedules for cost recovery AZ OK Ameren and approved by the Illinois install incremental gas-fired equipment through system expansion riders and SC NM AR Commerce Commission in December at existing facilities. Also, Rochester Gas methodologies for deferral of unrecovered 2014, makes access to natural gas service and Electric and New York State Electric eligible system expansion costs. AL GA MS more affordable for propane and other & Gas Corp. filed rate cases allowing fuel-source customers. the combined companies to accelerate 15 Washington the removal of aging gas mains and The Northwest Power & Natural TX LA 4 Indiana bring natural gas service to unserved Gas Planning Taskforce whitepaper, NIPSCO and Vectren filed seven-year communities. “Northwest Gas Infrastructure—Looking plans in late 2013 under a new law Forward,” concluded that utilities may AK allowing gas utilities to seek approval for 10 North Dakota have to adapt preferred gas supply and FL cost recovery trackers on customer bills. A new law in North Dakota provides infrastructure strategies to the location The trackers allow recovery of investments for a property tax exemption for and timing of infrastructure projects in infrastructure upgrades and extensions. infrastructure used to deliver natural gas chosen by large new gas users. As new to unserved communities, an income tax users enter the region and existing users HI 5 Michigan credit for conversion to a natural gas change consumption patterns, what State Rep. Aric Nesbitt reintroduced heating source and a sales and use tax is considered a robust supply could an infrastructure expansion bill to facilitate exemption for construction or expansion of change, causing gas utilities to change natural gas service to under- and unserved a natural gas transmission or distribution preferred gas-supply portfolios and areas in the state. The American Gas system. The North Dakota Legislature’s transportation product to ensure reliable Association’s Kyle Rogers has testified management committee also approved delivery to consumption point. before the Michigan House Committee on an interim study of possible natural gas Energy in support of the legislation. When expansion incentives. 16 West Virginia “smart modernization” effectively couples Under a law that took effect in June, replacement and expansion activities, he 11 Ohio natural gas utilities may file multiyear testified, the benefits include economic In December 2014, Governor comprehensive plans for infrastructure development opportunities, lower consumer John Kasich signed a law allowing replacements, upgrades and extensions. energy prices, environmental quality gas utilities to seek PUC approval of Each year’s filing will include a new opportunities, increased efficiencies and infrastructure development riders to proposed cost recovery increment based energy security. recover prudently incurred infrastructure on investments to be made in the next development costs of approved year, plus any under-recovery or minus any 6 Mississippi economic development projects. over-recovery of actual incremental costs Atmos Energy and CenterPoint Energy attributable to the infrastructure program are implementing 2013 Supplemental 12 Oregon investments for the preceding year. Growth Riders that allow investments of A new law directed the PUC to form up to $5 million annually in previously a working group to study methods that

NOVEMBER 2015 AMERICAN GAS 33 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 JOBS, PLEASE VISIT WWW.AGA.ORG.

CONSTRUCTION AND • Represent the Cooperative in meetings bid evaluations, recommend award and MAINTENANCE SUPERVISOR with various developers and city officials ensure compliance with contract terms and The Energy Cooperative, headquartered in to discuss construction of new additions conditions. Newark, Ohio, serves over 62,000 electric, and facilities. Maintain positive business • Perform studies and analytical assignments gas and propane members throughout central relationships consistent with the goals estab- that require financial, regulatory and techni- and southern Ohio. As a nonprofit coopera- lished for the Cooperative and wellbeing of cal knowledge. tive, we are member-owned and controlled by the members/consumers and community. • Perform cost-benefit analysis or prepare the members we serve. We are committed to statistical analysis and reports. serving our members safe, high quality energy QUALIFICATIONS • Participate in fuel accounting, budgeting, services at a reasonable price. Associates degree in a related field, 7–10 inventory and fuel management and infor- years supervisory experience in natural gas mation management/reporting. We are currently seeking a qualified individual field operations. Thorough knowledge of state • Possess strong understanding of cross-com- to fill the position of Construction and Mainte- and federal regulations including DOT pipeline modity relationship between natural gas, nance Supervisor in our natural gas division. safety regulations, Parts 190-199. Proficient fuel oil and electric This person is responsible for supervising em- in Microsoft Office Word and Excel. Effective The New York Power Authority is an Equal ployees engaged in construction and mainte- written and oral communication. Strong orga- Opportunity Employer. To apply for this posi- nance of the natural gas pipeline system. This nizational and planning skills. tion, visit https://careersatnypa.silkroad.com/ includes overseeing the daily activities of hired nypa/Home/Job_Search.html and search for company contractors and company personnel PHYSICAL DEMANDS AND job tracking code 3TBD02. in their assignment of construction, repairs, WORK ENVIRONMENT replacements and operation of the system. Required travel to and from work sites and must have the ability to work outside in ad- OPERATING SUPERVISOR SUPPORT AND INCORPORATE THE COOPERA- verse weather conditions and difficult terrain. Job Code: 15-741 TIVE’S MISSION, VISION Must be available to work during nonworking Organization: Area Operations AND VALUES. hours which includes weekends and holidays. Department: Various • Perform activities that support and promote Participates in an on-call rotation, 24 hours a We have the privilege of lighting New York the execution of the Cooperative’s policies, day, seven days a week. An individual in this City’s five boroughs as well as the growing procedures, goals and objectives. position is subject to pre-employment physical business centers of Westchester County. We • Understand, observe and enforce coopera- and substance-abuse testing as well as other illuminate operating rooms where medical mir- tive safety and security procedures. testing requirements that may be necessary for acles occur, bring up the lights on Broadway • Submit and refine operating budget items this position. and energize one of the world’s largest mass and make recommendations on anticipated transportation systems. We are the power expenses needed for vehicles, training, APPLICATION PROCESS behind Wall Street and the corner store. And, projects, etc. The Energy Cooperative offers an attractive most importantly, we transmit and distribute the • Develop and monitor operational standards compensation and benefits package includ- electricity and gas used in millions of homes. for construction, day-to-day operations and ing medical, dental, vision, life, disability, By focusing on what we do best—delivering maintenance of the natural gas distribution retirement, 401(k) and paid-time off. Qualified energy over a reliable transmission and dis- and transmission systems. applicants should submit a resume and cover tribution system—Con Edison has grown into • Keep abreast of current developments and letter along with salary requirements to: The one of the nation’s leading utilities. We serve safety and environmental concerns as they Energy Cooperative, Human Resources Dept., 3.3 million electric customers, 1.1 million relate to the natural gas industry. Ensure P.O. Box 4970, Newark, OH 43058-4970, gas customers and 1,825 steam customers. that the operations and equipment are via fax at 740/348-1133, or at hr@theener- Our service area includes the five boroughs compliant with federal DOT and state PUC gycoop.com. For more information about The of New York City and parts of neighboring regulations and within accepted industry Energy Cooperative, please visit our website Westchester County. standards. at www.theenergycoop.com. The Energy Co- • Respond to emergency situations with a operative is an Equal Opportunity Employer. QUALIFICATIONS sense of urgency and maintain control of Gas Operations is seeking to recruit an each situation in a safe, calm and profes- industrious professional who understands the sional manner. CONTRACT ANALYST-NATURAL GAS vital importance of personal responsibility and • Schedule and coordinate daily activities • Negotiate and administer contracts related a commitment to excellence in providing ex- of pipeline construction and maintenance to the procurement and delivery of natural emplary customer service. Must possess strong activities. gas and fuel oil. interpersonal skills with demonstrated ability to • Ensure department employees are up-to-date • Experience with RFP process including foster a team spirited work environment in sup- with all operator qualification requirements. development and issuance of bid request, port of Con Edison’s corporate values. Must

34 AMERICAN GAS NOVEMBER 2015 be well organized, detail oriented and flexible engineering plans and requirements of regula- discussed with Field Operations Planner and to handle multiple assignments with changing tory agencies, including all safety standards set Section Manager. Ensure proper area restora- priorities to meet deadlines. by OSHA and U.S. DOT. Ensure that required tion upon completion of job, utilizing appro- Bachelor’s degree preferred with two years of training for self and field crews are completed priate backfill techniques in accordance with work experience in a Con Edison organiza- in accordance with the training guidelines and Local Law 14, backfilling in lifts, and cut backs. tion or industry organization required; or high title/position specific requirements, including Direct field crews at gas incident locations to school diploma with five years of experience operator qualifications, environmental health ensure hazard removal in an expeditious and in the operation and maintenance of a gas and safety (EH&S), and documented OJTs. En- safe manner. Notify higher supervision on status distribution system is required; or high school sure that all workout centers and job sites meet of sensitive jobs. Enforce disciplinary rules diploma with five years of supervisory experi- the highest standards related to environmental and regulations. Prepare and/or assist with ence in a Con Edison organization or industry excellence as well as strict adherence to all city, the preparation of cut out procedures for jobs organization is required. Must have demon- state and federal environmental laws, and the involving L.P. mains greater than 12” and H.P. strated computer skills in Microsoft Office and Con Edison Work Area Protection guidelines. mains 4” and greater, in accordance with gas Mainframe systems and the ability to coordinate Ensure that all field crews, both contractors and specifications. Perform other related tasks and with other departments. company forces, are performing their work effi- assignments as required. ciently, safely and in accordance with company Chosen employees from the union that are specifications and procedures, as well as in Must have a valid driver’s license. Must be able promoted will be placed on the TEAM program. strict adherence to PSC and OSHA competent and willing to travel within company service All applicants must fulfill the requirements of person rules. Ensure the timely completion of territory, as needed. The position requires work- the operator qualification for a gas construction system repairs to improve productivity and ing in all types of weather conditions when in supervisor within one year of starting in the posi- work practices/procedures. Will supervise field the field, as well as climbing and working in tion. Positions are available in all areas of Gas personnel in work activities, coach, schedule, areas of limited space. Must be able to respond Operations. train and have appropriate safety discussions to emergency conditions when called. Must be with personnel. Assign and dispatch field forces willing to work overtime, on all shifts and be on RESPONSIBILITIES to work locations. Develop contingency work call 24 hours a day. Will ensure implementation of company safety, plans for crews in case the primary job cannot health and environmental programs for employ- be worked. Ensure proper oversight of company Interested in applying to this position? Follow ees whose work is directed. Ensure that safe forces and contractor crews. Discuss and/or the link below and apply online. http://apps. work practices are followed and the environment review daily job briefings with the crews, visit coned.com/careers/careers/list.asp?c=19 - is fully protected in accordance with company workout locations to verify safety and quality 15-741 policy and governmental regulations. Commit to of work being performed, as well as to witness the Way We Work Principles, and adherence critical tasks being performed. Ensure that all We will only contact candidates who are being to the company’s standards of business conduct required documentation is accurate and com- considered for an interview. and other company procedures including pleted within a timely fashion, including, but not environmental, health and safety (EH&S), equal limited to: emergency sketches, as-constructed employment opportunity (EEO), discipline, and drawings, valve reports, leak reports (50-13Rs), PROJECT SPECIALIST security. Take special interest in our customers, time entry, contractor billing documents and job Job Code: 15-748 both within the company and externally. site safety evaluations. Ensure that all required Organization: Gas Operations documentation is forwarded to the appropriate Department: Compliance & Qual Assessment As an employee, you need to commit to these departments in accordance with Con Edison We have the privilege of lighting New York ideals of developing a proactive, customer- specification and procedures, such as emergen- City’s five boroughs as well as the growing centric culture to foster trust and confidence cy sketches to Gas Engineering, Control Room business centers of Westchester County. We among customers and improve value for all our and Supporting Organizations. Check work lo- illuminate operating rooms where medical stakeholders. Will direct and supervise field cations to ensure that all expectations are being miracles occur, bring up the lights on Broad- forces for the physical installation, removal, met, and all items are accounted for, including way and energize one of the world’s largest repair and replacement of gas mains and but not limited to: proper housekeeping, appro- mass transportation systems. We are the power services in compliance with operating proce- priate PPE, sheeting and shoring as required, behind Wall Street and the corner store. And, dures, environmental laws and PSC guidelines. plating as required, debris pickup and barri- most importantly, we transmit and distribute the Ensure the safe, timely and efficient installation, cade pickup, vehicle properly equipped, proper electricity and gas used in millions of homes. By maintenance, repair and inspection of gas work area protection, valid permits and permit focusing on what we do best—delivering ener- mains, services and associated distribution posting, proper controls of material, compliance gy over a reliable transmission and distribution equipment of varying pressure and composi- with all work procedures and specifications. system—Con Edison has grown into one of the tion in accordance with operating procedures, Schedule jobs in accordance with priorities as nation’s leading utilities. We serve 3.3 million

NOVEMBER 2015 AMERICAN GAS 35 jobs

electric customers, 1.1 million gas customers management and tracking of expiration dates. PROJECT MANAGER – and 1,825 steam customers. Our service area Work with Training Effectiveness Committee, NATURAL GAS MID-STREAM includes the five boroughs of New York City Operator Qualification Committee and The PNJR Energy Services, a New Jersey Resourc- and parts of neighboring Westchester County. Learning Center to establish appropriate train- es company, is seeking a Project Manager ing and evaluation to meet operator qualifica- – Natural Gas Mid-Stream to support the QUALIFICATIONS tion requirements. Schedule and track operator Penn East Pipeline Project and Company’s Gas Compliance & Quality Assessment is qualification evaluations for re-qualifications midstream efforts by managing pipeline and seeking a highly motivated, organized and (annual and 3-year), and other associated transmission line projects. Monitor project detailed oriented individual to join the Gas work, including scheduling and coordina- team work activities and ensure project work Training and Employee Development section tion of company employees, contractors and is performed in accordance with company to manage the Operator Qualification plan outside consultants. Responsible for project procedures. Position requires work outside the and associated program. The Project Special- milestone tracking and status reporting. Pos- office for client/agency visits and may require ist will oversee, manage, track, and provide sess understanding and working knowledge overnight travel. guidance relating to the operator qualification of computer reporting and database manage- plan and requirements for Gas Operations ment systems. Maintain project documentation Position requires engineering degree plus and others working on the gas system. The and develop meaningful reporting metrics. 7–15 years of experience in engineering and successful candidate must be able to recog- Monitor the effectiveness of program and mod- construction in the pipeline industry. Previous nize the importance of attention to detail, ify as needed. Issue reports to user groups, experience managing linear utility projects, excellent project management and personal including external agencies. Partner with and FERC 7C Filings, Section 404/401 permitting. accountability. A Bachelor’s degree with 3 initiate benchmarking activities with other Perform quality reviews for detailed engineer- years’ minimum related work experience or organizations and outside utilities to develop ing documents and specifications. Pipeline HS diploma/GED with a minimum of 7 years best-in-class operator qualification program. modeling software knowledge. Previous con- related work experience is required. Related Interact with internal and external stakeholders sulting experience, PE license preferred. work experience includes gas operations, gas at all levels to achieve project goals. Ensure engineering, regulatory compliance, or project operator qualification program compliance To view full job description and to apply management. Working knowledge of operator with all federal and state regulations. Ensure online, please visit our website at www.njre- qualification requirements in the federal and implementation of Company safety, health and sources.com. EOE, includes providing equal state codes related to gas work is required. environmental programs for employees whose opportunity for minorities, women, protected Must have demonstrated experience/under- work is directed. Ensure that safe work prac- veterans and individuals with disabilities. standing of scheduling, planning and coordi- tices are followed and the environment is fully nating group functions. Must possess informal protected in accordance with Company policy leadership and interpersonal skills and have and governmental regulations. Commitment to SPECIALIST the ability to build rapport with internal and the Way We Work Principles, and adheres to #15-749 external stakeholders. Must be detail oriented the corporate values, the company’s standards Gas Operations is looking for a Specialist to and possess strong organizational skills to of business conduct and other company pro- join its management team. A Bachelor’s degree track and manage a variety of tasks in a fast- cedures including environmental, health and with 2 years of analytical, business adminis- paced setting. Must possess excellent oral and safety (EH&S), equal employment opportunity trative or finance experience is required. The written communication skills and a demonstrat- (EEO), and security. At Con Edison we have successful candidate must be self-motivated, ed ability to confidently interact with all levels and we all need to take special interest in resourceful, articulate and demonstrate the abil- of employees. The candidate must be capable our customers, both within the company and ity to work well within a team environment. He of working independently as well as in teams. externally. As an employee, you need to com- or she must be well organized, detail oriented Must have strong computer skills, including mit to these ideals of developing a proactive, and demonstrate the flexibility to handle mul- Microsoft Office, Microsoft Project, electronic customer-centric culture to foster trust and confi- tiple assignments and meet deadlines. Excellent learning management systems and document dence among customers and improve value for oral, written and presentation skills are neces- management systems required. all our stakeholders. Other duties as required. sary, as is the ability to interact with all levels of management. The successful candidate Master’s degree in related field preferred. Must have a valid driver’s license. Must be must be computer literate and experienced in Project management and/or supervisory experi- able to travel to various locations throughout the use of Microsoft Office applications, with ence is preferred. Experience with complex and the Con Edison service territory on a regular increased emphasis in Excel and PowerPoint. rigorous regulatory codes preferred. basis. Interested in applying to this position? Please Bachelor’s degree in finance, accounting, RESPONSIBILITIES follow link below and apply online: http:// business, economics or other technical area Work with a team to meet the milestones and apps.coned.com/careers/careers/list.asp?cat preferred. Demonstrated knowledge of Con goals associated with the ongoing transition egory=Gas+Operations#20056655 Edison’s Business Intelligence (BI), iProcure- to the Northeast Gas Associations operator ment, and PAYBUD, as well as other work qualification program. Assist team in transition- We will only contact candidates who are be- management systems is desirable. ing to Web-based tracking (ITS) of operator ing considered for an interview. qualifications for company employees and Ensure implementation of company safety, contractors. Provide guidance regarding code health and environmental programs for requirements relating to operator qualification. employees whose work is directed. Ensure Management of all aspects of the operator that safe work practices are followed and qualification plan and program, including the the environment is fully protected in accor-

36 AMERICAN GAS NOVEMBER 2015 dance with company policy and governmental TECHNICAL TRAINING INSTRUCTOR regulations. Commitment to the Way We Work The Technical Training Instructor will provide Principles, and adheres to the company’s stan- technical/job skills training to new and exist- dards of business conduct and other company ing employees, as well as participate in the procedures including environmental, health development of new training programs and and safety (EH&S), equal employment oppor- maintenance of existing training materials. The tunity (EEO), discipline and security. Review Technical Training Instructor will also conduct all contractor planned and emergency work to knowledge and skill evaluations for the pur- ensure requisitions have been created and ap- poses of determining qualification of new and proved in Oracle iProcurement. Reconcile order existing employees. releases and general office invoices for payment against actual work or services performed The primary audience for training will be our in accordance with the terms and conditions Field Metering Services employees (field cus- of established contracts and company policies tomer service) who perform: a) company- and and procedures. Interact with cost management customer-generated work related to the natural representatives on reconciliation of monthly gas meter; b) first response to gas leaks/ accruals. Review productivity reports with cost odor complaints/gas related emergencies; c) management to identify any discrepancies with turn off/turn on of natural gas service; and d) units completed or unit cost. Review accounts safe light up of gas appliances. The Technical and accounting activities in BI to identify and Training Instructor will also provide appropriate correct erroneous charges and report them to training to area fire departments, first responder clerical staff, cost management and accounts organizations, building officials, HVAC & payable. Work with all parties (internal and plumbing contractors, pipeline contractors and external) to ensure that all paperwork is accu- community groups. rately completed and all units are captured in a timely manner. Performs analysis and recon- For more information visit us at www.dom.com/ ciliation of internal records reviews to identify careers. areas of improvement as well as future review schedules. Identify and recommend work prac- tice changes where the operating areas can UTILITY ANALYST – perform work functions more efficiently and ef- NATURAL GAS ENGINEER fectively as it pertains to regulatory compliance. The Indiana Office of Utility Consumer Coun- Develop innovative and effective strategies to selor is seeking a Utility Analyst – Natural Gas improve the way we do business—partnering Engineer. Incumbent will assist as an OUCC ad- with the operating areas to implement change vocate for utility customers in matters before the (i.e. conduct training). Work with internal com- Indiana Utility Regulatory Commission. puter applications including GIS, ECS, Byers, Analyze the utility’s filing and write testimony Data Warehouse and CAD. Coordinate with regarding the reasonableness of capital plans quality assurance team to present/communicate and cost recovery mechanisms for capital review findings and/or lessons learned to op- expenditures; construction budgets and justifica- erating areas and senior management. Provide tion of proposals to fund utility plant replace- other analytical and administrative support as ment or new construction. required. Must have a valid driver’s license. The position Requirements: requires field visits within the service territory. The • Bachelor’s degree in engineering with five ability to safely enter and traverse construction years’ industry experience. Master’s degree sites and customer premises with limited access in engineering and professional engineer is necessary. The successful candidate will be certification preferred. required to work additional hours as operational • Knowledge of PHMSA rules and guidelines. needs and/or system emergencies dictate. Must • Superior analytical skills. be willing and able to travel to and work from all • Superior written and oral communicatio gas operating locations on occasion. skills.

Interested candidates please visit our website Please submit all responses to barsmith@oucc. www.coned.com/careers. Please reference job in.gov code 15-749

NOVEMBER 2015 AMERICAN GAS 37 BURNER TIPS When ONEOK separated its natural gas distribution business and created a new, independent utility called ONE Gas, the utility faced a daunting task of communicating organizationwide changes. BY JOE TECSON

PREPARING EMPLOYEES FOR TRANSFORMATIVE ORGANIZATIONAL CHANGE

n 2012, ONEOK Inc. began an enor- business processes across the organization. MEASUREMENT SURVEYS: mous effort to improve the performance ONE Gas’ organizational readiness THE KEY TO SUCCESS of its natural gas distribution segment approach took the workforce through a Readiness surveys, administered over a by applying best practices and align- progression of information and learning period of 16 months, measured what ing disparate technologies and business that went from a high-level to a more employees already knew and what they processes across its three distribution granular focus. Initially, the purpose of the expected to learn. The surveys examined companies—Oklahoma Natural Gas, messaging was awareness—what changes the workforce’s strengths and weaknesses Kansas Gas Service and Texas Gas Service. were being implemented and how they in understanding the new technology and IThe goal of this extensive initiative, called would impact the business and individual business processes and provided insight “The Journey,” was to improve perfor- employees’ jobs. From the workforce’s into the state of readiness employees felt at mance and safety in the organization’s perspective, the communication they were any given stage. operations and maintenance activities in receiving wasn’t change management or Surveys were not just quantifiable data, order to create a long-term, sustainable training, but rather consistent messag- but also qualitative data that was aggregated competitive advantage. ing from end to end that prepared them from focus groups, surveys, pulse-check calls To add to the complexity of “The to enter the training ready and willing to and feedback at meetings. This data gave Journey,” in the middle of the multiple- learn the “how.” ONE Gas leadership a level of awareness year initiative, ONEOK separated its A change team was created, made up that enabled them to make adjustments natural gas distribution business in Febru- of midlevel leadership including direc- to the change management and training ary 2014 and created a new, independent tors, managers and supervisors, who were programs along the way, based on where end utility called ONE Gas. This new utility, responsible for cascading communications users were on the readiness spectrum. one of the largest natural gas distributors and coaching front-line leadership and the Change management is often hard to in the U.S., was faced with the daunting general workforce (end users) through the measure. However, by the third survey— task of communicating organizationwide change. A structured, intentional program which was administered after the first round changes to its geographically dispersed was established that made alignment feel of training—employee and organizational employees, while preparing them to natural, because multiple levels were being readiness dramatically increased. This ap- embrace and operate under a new work held accountable for communicating and proach enabled ONE Gas to point to ROI management system and integrated busi- ultimately embracing the change. as an output of change management. ness processes. By the time employees entered the Although the changes were not as classroom for end-user training, they had dramatic for all groups, the gap in the A SEAMLESS ORGANIZATIONAL bought into the new system and processes standard deviation was. This demonstrated READINESS APPROACH and were informed as to why certain to the change team and leadership that ONE Gas partnered with Mosaic, a national changes were crucial for business success. the entire workforce was less polarized and training and workforce consulting firm, to The first lesson of classroom training that a majority of them did not indicate assist with organizational readiness related essentially echoed what the change team significant concerns or negative views. In to the implementation of the new work had already been communicating to the other words, they emotionally understood management system and the alignment of workforce for months. the need for change. This was clearly dem-

38 AMERICAN GAS NOVEMBER 2015 onstrated in end-user training; employees ment; and then define expectations, arrived asking “how,” not “why.” measure outcomes and hold the workforce and leadership account- LESSONS LEARNED able to those expectations. The “golden rules” of effective change • Remember that change is change is management are captured in a few guiding change. Employees do not segre- principles: gate change based on the initiator • Address intellect and emotion. Change of the change—it is all just change. management has to address both sides. Change after change can lead to People may say they intellectually change fatigue. understand the need for change, but As a dynamic organization, change their emotions, how they feel about management isn’t going away at ONE the change, is really what matters and Gas. The utility is continually evaluat- determines action. ing itself, identifying new opportunities • Provide face-to-face communication to improve and seizing those opportuni- with leaders. Most employees like and ties. In fact, the change management NEXT MONTH appreciate face-to-face communication efforts from this initiative provided so PROFILE: RALPH LAROSSA, with their leaders. Leaders can create much benefit that senior leadership AGA’S 2016 CHAIR the opportunities by doing walk- and lines of business have created a Now president and CEO of Public arounds, drive-arounds or intentionally group that is responsible specifically for Service Electric and Gas Company Inc., finding groups of employees to speak ongoing change management. That is Ralph LaRossa started out in the natural with, and then following up with a true testament to the value of a strong gas industry from the ground up as an personal email or phone call to rein- program. u associate engineer. A graduate of Harvard force their message. Business School’s Program for Management • When working through cultural Joe Tecson is a senior consultant and Development, LaRossa shares his thoughts change, work through progression. project manager at Mosaic, a national on leadership and teamwork as he steps into This involves thinking, talking and training and workforce consulting firm the role of AGA’s 2016 chairman. doing. Raise awareness; provide lots of providing custom solutions to utilities and opportunity for dialogue and engage- oil and gas companies. RESIDENTIAL CONSTRUCTION Do you have a natural gas appliance in your home? More single- and multi-family homes are saying yes as utilities work with builders to demonstrate the value, effectiveness and energy efficiency of natural gas products. AD INDEX BURNER TIPS: EMPLOYEE WELLNESS Wellness isn’t just an HR buzzword. It’s a A.Y. McDonald Manufacturing Company 3 LocusView 29 proven way to increase employee engagement, retention, safety and health—which is crucial for energy companies looking to Bascom Turner Instruments Inside Back Marsh Bellofram Group of Companies Inside Front keep current employees and attract the next generation of workers. Gas Technology Institute 14 S&N Communications Inc. 10

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

NOVEMBER 2015 AMERICAN GAS 39 MAKING A DIFFERENCE

QUICK THINKING

klahoma Natural Gas Customer Service found a woman trapped and buried in the rubble. Field Technician Cory Scalf (left) was just She was pulled to safety from a small gap in the debris, shaken up doing his job—checking a heavily damaged but not seriously injured—rescued thanks to Scalf’s quick thinking. neighborhood for natural gas emissions in the “I never thought I would be in a position to help save a life aftermath of a tornado in Oklahoma City— while doing my job,” said Scalf, who fielded multiple media inter- when his sharp hearing and good timing views following his heroic efforts. It’s a good feeling to be able to made him a hero. make a difference. I would want someone to do the same for my Around 1 a.m., hours after the storm had struck, Scalf family member.” u Ohappened to pass a row of demolished homes when he thought he heard someone calling out for help. He quickly reported the Are your employees or company making a difference in your community? sounds to nearby police officers, who followed the faint calls and Contact Tracy Burleson at [email protected] to submit your ideas. PHOTO COURTESY OF ONE GAS PHOTO COURTESY

40 AMERICAN GAS NOVEMBER 2015 NOVEMBER 2015 AMERICAN GAS 3 Preventing leaks before they become a threat

The scariest thing about gas leaks is you don’t know when or where they’ll occur. Itron’s gas AMI network, equipped with pipeline monitoring and remote disconnect technologies, helps utilities lessen the threat and impact of leaks, enhancing safety for employees and customers. Just one of the ways we’re working to create a safer, more resourceful world. itron.com/gas