Reach More Data in More Places
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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 Industry leading 2 week lead time Made in the U.S.A. Quality-driven customer focus BelGAS Channel Partner Spotlight Putting the customer first for more than 25 years Serving Proudly BelGAS customers in: • California • Nevada • Oregon • Washington • Arizona • Idaho • Utah Tri Pacific Sales Main Office: 916-630-2323 Email: Tripacsup@tripacific.net Address: 4345 Pacific St. Rocklin, CA 95677 AMERICAN GAS 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, busi- ness 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] www.aga.org • www.truebluenaturalgas.org • @AGA_naturalgas FOLLOW AGA ONLINE www.flickr.com/photos/agadotorg • www.facebook.com/naturalgas • www.aga.org, click on LinkedIn icon 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.