the monthly magazine of the american gas … · non’s 14-and-under vienna shamrocks softball team...

AMERICANGAST H E M O N T H L Y M A G A Z I N E O F T H E A M E R I C A N G A S A S S O C I A T I O N DECEMBER 2015/JANUARY 2016

INNOVATIVE SOLUTIONS FOR THE HOUSING MARKET 28

NEW YEAR, NEW EMPLOYEE WELLNESS PROGRAM 34 THE

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DECEMBER 2015/JANUARY 2016 AMERICAN GAS 1

COVER PHOTO AND ABOVE BY DREW WIEDEMANN

AMERICAN GASVOLUME 97 NUMBER 10 DECEMBER 2015/JANUARY 2016

22

AMERICANGASAMERICAN GAS

PIPELINESummer Lovin’ 5

Digest 6 Cameron Access Project is approved; Emera and TECO Energy merge; Cleveland buses move to CNG; and more.

Industry 6, 8Proactive planning is key to protecting against wildfire risks; and projects are moving plentiful natural gas out west.

Energy Assistance 6Utilities work to connect low-income families.

Safety 7Nicor Gas and the American Red Cross teach natural gas safety.

LNG 9Emerging nations are turning to hybrid LNG ships.

Science 9Private-public partnership is exploring new fuel cell technology.

By the Numbers 12It may be a surprise to some, but not to those in the industry: The natural gas and oil industry is driving the reduction of greenhouse gas emissions.

Places 14

ONLINE EXCLUSIVE Pipeline SafetyA new American Gas Foundation report offers an assessment of progress made toward natural gas pipeline safety and reliability.

STATE WATCHAn LNG First 15

Florida 16Natural gas appliance leasing saves homeowners from hassle.

Washington 16CNG enters the Olympic Peninsula.

Ohio 17Pipeline compressor station permits may soon be easier to obtain.

Colorado 18Governor is pushing for more NGVs.

New Mexico 18Natural gas looms large in compre-hensive energy plan.

New York 19New program will retrofit properties to natural gas.

California 20State is first in the nation to launch commercial benchmarking program.

BURNER TIPSEmployee Health 34Want to get right to the heart of the core strategy of your business? Start with an active and healthy employee wellness program, says Limeade’s Henry Albrecht.

DEPARTMENTS

President’s Message 2As we move into 2016 with a newboard chairman, we continue to seek out opportunities to bring the benefits of natural gas to every corner of our nation and every part of our communities.

Jobs 32

Ad Index 35

Making a Difference 36Football Fridays in this small town are better than ever, thanks to a little love and lot of hard work from one Ameren Illinois employee.

Cover Story 22The Value of TeamworkBY JAKE RUBINIncoming AGA Board Chairman Ralph LaRossa has fond memories of the many opportunities afforded him. It’s why he’s tackling his latest role with a mission: to bring more talented young people into today’s utility workforce.

Feature 28Right at Home BY CAROLYN KIMMELWith new single- and multifamily homes on the upswing, natural gas utilities are leading the way toward innovative solutions to further the housing market’s recovery.

F E A T U R E S

From left to right, the team at Public Service Electric & Gas: Joe Forline, vice president, customer solutions; Kim Hanemann, senior vice president,

delivery projects and construction; Ralph LaRossa, president and COO; Rick Thigpen, vice president, state governmental affairs; Greg Dunlap,

vice president, customer operations; Jorge Cardenas, vice president, asset management and centralized services.

AMERICAN GAS DECEMBER 2015/JANUARY 20162

PRESIDENT’S MESSAGE

If you’ve ever seen the movies “Friday Night Lights” or “Varsity Blues,” then you know what my life was like growing up in southwest Oklahoma. I was always on the football field or playing baseball, and the lessons I learned playing as part of a team have stayed with me since those days.

I have worked to instill sportsmanship and good values in my children and had the pleasure of working with teams on which they played. In 1998, I coached my daughter Shan-non’s 14-and-under Vienna Shamrocks softball team to a

PONY League national championship. She went on to play softball at Emory University, and many of her teammates played at the college level as well. I was as proud of their accomplish-ments as I have been of my own.

Throughout my life and career, I have seen over and over again what can be accomplished when a team works together toward a shared goal. I see this same spirit within the American Gas Association’s member companies. The commitment and camaraderie that goes into delivering natural gas safely and reliably is impressive and inspiring. That goodwill is passed on to the customers, as we see every year with the J.D. Power Gas Utility Residential Customer Satisfaction Study. People like their natural gas utility because they like the team of people who help them and serve their community.

The American Gas Association, too, is guided by an incred-ible team. Terry McCallister from Washington Gas has done a tremendous job as our chairman this past year. Our industry called on him to speak at the World Gas Conference in Paris, testify about pipeline safety before the U.S. Senate and fly all over the country delivering our message. He has done all this with vigor, dedication and good cheer. I want to congratulate Terry on a job incredibly well done.

I am pleased to welcome Ralph LaRossa as our chairman for 2016. Ralph is president and chief operating officer for Public Service Electric and Gas Co. in New Jersey. No one understands President and CEO, [email protected]

BATTER UPteamwork better than Ralph. As you can see from his profile in this issue of American Gas, Ralph is a leader on the field and in the boardroom. He and his wife Marty have a deep commit-ment to coaching youth sports in their community—passing on the traditions of sportsmanship and hard work to the next generation of leaders.

Ralph is also passionate about the role of natural gas utili-ties in our communities. He has worked at PSE&G for 30 years, starting as an associate engineer and advancing through a variety of management positions. Ralph has been part of cultivating an engaged workforce in which everyone feels valued and respected for their experiences, values and perspectives. At PSE&G, they call it “People Strong,” and it is a cornerstone of their success.

The affordable and stable price of natural gas has created tremendous prosperity for our nation, and this must extend into our communities. On a number of occasions, in this space, I have addressed the wave of retirements that our industry will face in the coming years. Ralph LaRossa has reminded us that this challenge is an opportunity—both for our companies and for millions of young people who can make a life for themselves and their families with a utility job. I look forward to working with Ralph and all of our AGA members in 2016 as our team works to bring the benefits of this foundation fuel to every corner of our nation and every part of our communities. u

What can’t be accomplished when a team works together

toward a shared goal? As we move into 2016 with a new

board chairman, we continue to seek out opportunities to

bring the benefits of natural gas to every corner of our nation

and every part of our communities. BY DAVE McCURDY


The American Gas Association, founded in 1918, represents more than 200 local energy companies that deliver clean natural gas throughout the United States. More than 72 million U.S. residential, commercial and industrial customers use natural gas; 94 percent—more than 68 million customers—receive their gas from AGA members. Natural gas meets almost one-fourth of the United States’ energy needs. Visit us at www.aga.org.

American Gas provides natural gas industry professionals with the information they need to enhance their effectiveness and that of their companies by publishing leading-edge reports on the industry and on American Gas Association activities that offer value to its members.American Gas (ISSN 1043-0652) is published monthly (except for bimonthly August/September and December/January issues) by the American Gas Association, 400 N. Capitol St., N.W., 4th Floor, Washington, D.C. 20001. Phone numbers: advertising, 717/430-2218; editorial, 717/430-2397; circulation, 866/512-3111; fax, 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 of the American Gas Association.

ANNUAL SUBSCRIPTION: $59 domestic (United States), $110 foreign. Single copies, $7.50 each domestic, $12.50 each foreign. Periodicals postage paid at Washington, D.C. and at additional mailing offices. POSTMASTER: Send address changes to American Gas, P.O. Box 317, Congers, NY 10920-0317.

REPRINTS: For high-quality reprints of articles to use in your education, promotional or sales efforts, including electronic reprints, contact Cindy Eyler at Sheridan Reprints at 717/632-3535, x8008 or [email protected]. ©2015 American Gas Association.

All rights reserved. Reproduction in whole or part without written permission is prohibited.

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OFFICERS

CHAIRMAN OF THE BOARDRalph A. LaRossa, Public Service Electric & Gas Co.

FIRST VICE CHAIRMANPierce H. Norton II, ONE Gas Inc.

SECOND VICE CHAIRMANKimberly J. Harris, Puget Sound Energy

IMMEDIATE PAST CHAIRMANTerry D. McCallister, WGL Holdings Inc.

PRESIDENT & CEODave McCurdy, American Gas Association

SENIOR VICE PRESIDENT & COOLori S. Traweek, American Gas Association

GENERAL COUNSELKevin B. Belford, American Gas Association

CORPORATE SECRETARYGary W. Gardner, American Gas Association

CHIEF FINANCIAL & ADMINISTRATIVE OFFICERKevin M. Hardardt, American Gas Association

DIRECTORS

Craig L. Adams, PECO Energy, an Exelon Co. William J. Akley, Eversource Energy

Dennis V. Arriola, Southern California Gas Co. Robert F. Beard, UGI Utilities Inc.

Lonnie E. Bellar, LG&E-KU, PPL CompaniesCarl L. Chapman, Vectren Corp.

Kim R. Cocklin, Atmos Energy Corp. Laurence M. Downes, New Jersey Resources

Jeffrey E. DuBois, South Jersey Gas Co. David R. Emery, Black Hills Corp.

William J. Fehrman, MidAmerican Energy Co.Kevin Fletcher, WEC Energy Group

Gordon L. Gillette, Tampa Electric and Peoples GasJoseph Hamrock, NiSource Inc.

John P. Hester, Southwest Gas Corp. Glenn R. Jennings, Delta Natural Gas Co. Inc.

Ronald W. Jibson, Questar Corp.Patricia L. Kampling, Alliant Energy

Gregg S. Kantor, NW Natural Nicole A. Kivisto, Montana-Dakota Utilities Co.

Steven E. Kurmas, DTE Energy Kent T. Larson, Xcel Energy Inc.

James P. Laurito, Central Hudson Gas & Electric Corp. Diane Leopold, Dominion Energy Richard J. Mark, Ameren Illinois

Kevin Marsh, SCANA Corp. John McAvoy, Consolidated Edison Inc.

Michael P. McMasters, Chesapeake Utilities Corp. Scott L. Morris, Avista Corp.

Morgan K. O’Brien, Peoples Natural Gas Scott M. Prochazka, CenterPoint Energy

Ian Robertson, Algonquin Power & Utilities Corp. Robert C. Rowe, NorthWestern Energy

John G. Russell, CMS Energy Corp. Suzanne Sitherwood, The Laclede Group Inc.

Thomas E. Skains, Piedmont Natural Gas Co. Inc. John W. Somerhalder II, AGL Resources

Nick Stavropoulos, Pacific Gas and Electric Co.Ronald J. Tanski, National Fuel Gas Co. James P. Torgerson, UIL Holdings Corp.

Ross W. Turrini, National GridCraig E. White, Philadelphia Gas Works

ADVISORY DIRECTORS

John S. D’Orazio, RGC Resources, Inc.Julie A. Dill, Spectra Energy Corp.

Rory Miller, Williams Companies Inc.William C. Stephens, ATCO Gas

EDITORIAL DIRECTORTracy L. Burleson

[email protected]/824-7229

CONTRIBUTING EDITORSMichael MurrayJennifer O’Shea

CIRCULATION MANAGERSherri R. [email protected]

EXECUTIVE EDITORAnnette Gray

SENIOR EDITORDanielle Wong Moores

MANAGING EDITORMelanie Bracey

EDITORIAL COORDINATORJordan Kell

CREATIVE DIRECTORSerena Spiezio

SUBSCRIBER CUSTOMER SERVICE866/512-3111

fax: 845/[email protected]

ADVERTISINGJustin Wolfe

The YGS Group717/430-2238

[email protected]


IN THIS SECTION

Utilities connect low-income families with home heating help 6

Several projects are moving plentiful natural gas out west 8

Emerging nations are turning to hybrid LNG ships as an energy source 9

SUMMER LOVIN’Consumers Energy interns learn the importance of giving back

AMERICAN GAS

More than 150 Consumers Energy summer interns collected 3,500 items for food pantries, picked up over 60 gallons of trash, built park benches and taught kids how science can be fun—all while volunteering for 27 nonprofit organizations throughout Michigan during the Intern Challenge competition. “The Intern Challenge introduces our interns, some of whom will go on to work with us full time, to the idea that we serve our communities on and off the job,” said Carolyn Bloodworth, Con-sumers Energy’s director of corporate giving.

The challenge, now in its ninth year, asks interns to develop solutions to problems facing communities where Consumers Energy oper-

ates. This year, the interns came from more than 40 colleges, and they worked in a variety of areas, including engineering, information technology and communications.

“Our company culture is strengthened by employees who volunteer in the Michi-gan communities that we serve,” said Brian Wheeler, senior public information director. “It’s important that interns learn about the value of giving back from the moment they start working for us. The Intern Challenge puts their talents to work helping nonprofits and also provides interns with the outlook that volunteering is a vital part of a fulfilling career.” —Adam Folk

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Consumers Energy interns celebrated their volunteer work for Michigan nonprofits during the 2015 Intern Challenge.


I N D U S T R Y

At the ReadyProactive planning is key to protecting against wildfire risks

W ildfires raged through drought-stricken California last summer and fall, costing lives, destroying homes

and causing billions of dollars in damage.The state’s utility companies worked hard to

protect their natural gas pipelines and electric transmission lines during the unprecedented wildfire season.

“We monitor wildfire activity near transmis-sion and distribution pipelines throughout our entire 70,000-square-mile service territory and proactively implement preventive measures to protect the public, our employees and our gas pipelines,” Stephanie Dell, spokesperson for Pacific Gas & Electric Co., told American Gas.

That includes working closely with local fire officials and first responders to identify and mitigate potential risks to the system, she said.

Even when fires are not threatening the state, the utility has an extensive vegetation management program to reduce fire fuel sources, she said. It has given $2 million to lo-cal Fire Safety Councils and has funded lookout towers and cameras for early fire detection. It also conducts daily aerial patrols to spot signs of smoke or fire.

During the major fires that burned over the summer and fall, PG&E crews performed the following actions related to natural gas pipe-lines, Dell said:

• Informed local fire officials of the locations and nature of the company’s gas facilities.

• Participated in planning and incident command activities.

• Conducted ground patrols.• Inspected valves, stations and other facili-

ties within the fire perimeter for damage.• Evaluated company plans to understand

system impacts in order to safely shut down transmission and distribution facili-ties if needed.

• Obtained up-to-date information on fire activity and kept track of the distance from the fire perimeter to gas pipelines and facilities.

• Applied fire retardant to above-ground facilities and valve locks.

• Worked with the U.S. Forest Service and CAL FIRE to avoid the use of bulldozers and other heavy equipment over transmis-sion lines.

PG&E also donated more than $250,000 to the Red Cross to help ease the suffering of peo-ple affected by the fires. —Monica von Dobeneck

E N E R G Y A S S I S TA N C E

Home Heating HelpUtilities work to connect low-income families

New Jersey Natural Gas is working hard to ensure none of its customers are left out in the cold because of their energy

bills this winter. The company held its annual Energy As-

sistance Days in September and October at locations throughout its service territory. It’s all to connect the company and state agencies with low-income customers and provide them the en-ergy assistance and home improvement programs that will help keep them warm throughout the heating season.

The result of a unanimous board decision is set to bring together Duke Energy Corp. and Piedmont Natural Gas Co. Inc. The Charlotte, North Carolina-based energy providers announced earlier this fall that Duke Energy will acquire Piedmont, and both companies look forward to continuing to pro-vide quality natural gas service to customers in the combined service areas in Ohio, Kentucky, Tennessee and North and South Carolina. “This combination provides us with a growing natural gas platform, benefiting our customers, communi-ties and investors,” said Lynn Good, president and CEO of Duke Energy. Piedmont is expected to retain its name but become a business unit of Duke. Both companies look to close on the agreement by the end of 2016, pending approval by the North Carolina Utilities Commission. Duke Energy and Piedmont also are key partners in the $5 billion Atlantic Coast Pipeline that will be the first major natural gas pipeline to serve eastern North Carolina.

Columbia Gulf Transmission LLC is looking forward to new market opportunities now that the Federal Energy Regu-latory Commission has approved its construction project in Louisi-ana. The Cameron Access Project, or CAP, includes putting in 34 miles of pipeline and installing a 12,260-horsepower compressor station in Jefferson Davis parish. The output of the new construc-tion stands to be up to 800,000 Dth/d on the West Lateral Trans-mission System. Once construction is complete, the gas flow direction will shift—currently LNG through the West Lateral system flows west to east, but will eventually flow

AMERICAN GASD I G E S T

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New Jersey Natural Gas employees (left to right) Greg Seitz, Ann Marie Menafra, Robert DiTommaso, Bill Bradshaw and Theresa Owens participated in the company’s annual Energy Assistance Days.


“We believe no one should have to choose between putting food on the table or heating their home,” said Kathleen Ellis, executive vice president and chief operating officer, New Jersey Natural Gas. “Through our Energy Assistance Days, New Jersey Natural Gas employees work one-on-one with anyone who is facing a finan-cial hardship or struggling to pay their energy bill to let them know that help is available.”

Representatives helped customers determine their eligibility for a host of assistance programs, including the federally funded Low Income Home Energy Assistance Program, which began accept-ing applications on October 1. The team also helped families apply to New Jersey’s state assis-tance program, the Universal Service Fund, as well as to NJNG’s own program, the Gift of Warmth. These funds, along with the state-sponsored Pay-ment Assistance Gas and Electric and NJ Shares programs, give energy assistance to residents who exceed both LIHEAP and USF, but have tempo-rary or unanticipated financial problems.

Nationally, natural gas and electric utilities provided nearly $3 billion in rate assistance in 2012 to help low-income customers. The money was in the form of hardship funds, discounted rates and arrearage forgiveness. Utilities also spend nearly $700 million annually on energy efficiency assistance for low-income custom-ers. In addition, the American Gas Association works consistently to advocate for resources to protect those in need through LIHEAP.

According to the U.S. Census Bureau, about 15 percent of the country—roughly 46 million Americans—lives in poverty, and the average low-income U.S. family spends double the

percentage of its annual household income on home heating than the average U.S. family that is not low income.

S A F E T Y

A Good Partnership Nicor Gas and the American Red Cross teach natural gas safety

For the first time ever, Nicor Gas partnered with the American Red Cross to teach natu-ral gas and home safety at fire stations across

the company’s northern Illinois service area. It’s the 10th year Nicor Gas has run the natural gas safety program, which is held in conjunction with national Fire Prevention Week in October.

“By teaming up with local fire departments and the American Red Cross, we are able to educate customers about natural gas safety, fire prevention and other emergencies,” Melvin D. Williams, president of Nicor Gas, told American Gas. “The safety of our customers and the general public is our number-one priority, and this pro-gram provides valuable learning tools that could save lives.”

Williams said the company has been part of the fabric of the community for more than 150 years.

“This program is one of Nicor Gas’ signature community outreach programs,” he said. “It provides a great opportunity for our employees to interact with our customers in an entertaining and educational environment.”

east to west to accommodate Gulf Coast or international export opportunities.

Emera Inc. and TECO Energy Inc. are set to join forces as Emera acquires the diverse energy company. As part of the agree-ment, TECO Energy—parent company of New Mexico Gas Co, Peoples Gas and Tampa Electric—will become a subsidiary of Emera. The Halifax, Nova Scotia-based energy company plans to continue its focus on providing reliable and affordable energy solutions to its now nearly 2.4 million custom-ers. “Our patient approach and disciplined investment criteria have resulted in a pure-play regulated utility transaction that we expect to be significantly accretive for Emera’s shareholders and one that advances our strategic objectives,” said Christopher Huskilson, presi-dent and CEO of Emera Inc. “We have found our ideal match in TECO Energy.” The finalized deal is expected to close mid-2016.

Cleveland is looking to save $200,000 per bus by transition-ing its fleet to run on natural gas. The Greater Cleveland Re-gional Transit Authority automobiles, known as RTA to regular riders, will not only give back to the environ-ment by reducing pollution output by more than 100 tons, but the 60 new buses have upgrades for riders, too. Along with moving to the cost-effective fuel, the buses will offer more comfortable seating and additional insulation to keep out the wind chill during winter months. The American-built buses will cost slightly more than their diesel-operat-ed counterparts, but the cost savings over the anticipated 12-year lifes-pan of each bus makes up for the

D I G E S T

Continued on page 8

Nicor Gas employees volunteered at the annual

DeKalb Fire Department Open House.

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AMERICAN GASnatural gas from eastern shales to western markets.

The NEXUS Gas Transmission project proposes to build about 250 miles of interstate natural gas transmission pipelines from eastern Ohio to existing pipeline systems in southeast-ern Michigan. Spectra Energy Corp. and DTE Energy, the lead project developers, expect the pipeline to deliver 1.5 billion cubic feet per day of natural gas from emerging Appalachian shale gas fields to consumers in those states, as well as to the Dawn Hub in Ontario, Canada, and the Chicago Hub in Illinois.

“Additional pipeline transportation infrastruc-ture is needed in Ohio, Michigan and Ontario, Canada, to support the growing demand for clean-burning natural gas and to offset the decline in traditional western Canadian supplies,” said Arthur Diestel, a NEXUS spokesman.

Currently, there is a 600-foot-wide study cor-ridor for the pipeline, which begins near Kens-ington, Ohio, and ends at Ypsilanti, Michigan, just outside Ann Arbor. The companies support-ing the NEXUS project submitted a prefiling application to the Federal Energy Regulatory Commission earlier this year.

The companies say the project will lead to increased energy diversity, security and reliability in the areas where the pipeline is built.

D I G E S T

At the event, Nicor Gas volunteers provide kid-friendly demonstrations and important tips to prepare families in case of a gas-related emer-gency. Displays feature hands-on activities for children to help them understand the origin of natural gas, what it’s used for and information about safety. Scratch ‘n’ sniff cards are given out to children to help them recognize the “rotten egg” odor of natural gas in case of any potential leaks. Parents too can learn about Nicor Gas programs and American Red Cross initiatives. For example, the American Red Cross provides drawing sheets that families may work on together to draw an emergency escape plan for their house.

I N D U S T R Y

Go West, Natural GasSeveral projects are moving plentiful natural gas out west

Demand for natural gas in some states is spur-ring an infrastructure boom as companies work to develop new pipelines to send

Continued from page 7initial cost, and no cost increases will be passed on to riders.

Honda is bridging the divide for CNG-operated passenger vehicles by opening a soon-to-be-public CNG refuel-ing station at its produc-tion facility in Marysville, Ohio. The car manufacturer noted the increased demand for CNG refueling opportunities and wanted in on the action. Although production of the CNG Honda Civic was discontinued in early 2015, Honda is looking for other ways to support the NGV industry. “We decided to look for ways to create our own CNG infrastructure, and we are posi-tioned to potentially expand our CNG network and help suppliers throughout our manufacturing network,” said Dana McBrien, associate chief advisor of North America logistics for Honda. The station is built to accommodate

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“By expanding access to natural gas in these markets, NEXUS will provide consumers across the region with affordable, cleaner-burning and domestically abundant natural gas to help meet the growing demand for cleaner power genera-tion, industrial and commercial use, and home heating,” Diestel said.

They also predict that the project will create more than 6,800 jobs, $650 million in wages and salaries for workers and have a total economic impact of $830 million for Ohio and Michigan.

TransCanada Corp. also announced its $10.7 billion ANR East Project in 2013. The pipeline will connect the company’s system with Utica and Marcellus shale gas. Through different interconnections, shale gas could flow into the Midwest and parts of Canada. According to the company, the project is the next logical step to providing a connection between the Utica basin and the markets that ANR serves.

L N G

PopularEmerging nations are turning to hybrid LNG ships as an energy source

Hybrid LNG ships, known as Floating Storage and Regasification Units, are becoming a booming part of the natural

gas market worldwide. The 1,000-foot vessels are increasingly popular as countries seek access to a quick power source during shortages.

While similar to land-based LNG terminals in all aspects, FSRUs have the ability to transport liquefied natural gas, vaporize the LNG and deliver it through specially designed offshore and near-shore facilities at a flow-rate of 50 million standard cubic feet per day.

“For markets that are facing supply short-ages because of increased demand for natural gas, FSRUs offer a cost-effective and rapid-to-market solution for the importation of LNG,” said Denise Madera, director of marketing and communications for Excelerate Energy LP, which produces the vessels.

Madera said emerging markets are particu-larly interested in FSRUs because they are less expensive in most cases compared to a land-based

solution. They are also more time efficient be-cause they can be in place in one to three years, compared to roughly six years for a facility that must be built on land. Madera said the FSRU’s small footprint also means fewer effects on the surrounding environment.

“Countries are electing to import LNG via a floating regasification terminal rather than an onshore terminal,” she said. “In addition to the economic benefits of using natural gas, many countries are switching from other, more polluting fossil fuels to clean-burning natural gas for power generation and industrial use. FSRUs allow for the fastest path to environmental improvement.”

She added that countries also see FSRUs as a way to become more energy independent because they allow for the diversification of energy sources free from the geopolitical conditions in a region.

Because oil is relatively easy to pump into ships, it still dominates the international energy trade. But LNG is catching up. According to International Energy Agency forecasts, LNG will experience a 40 percent increase in interregional gas trade by 2020. New infrastructure and plat-forms like the FSRUs make that possible.

Countries like Egypt, Jordan and Pakistan all recently began using FSRU platforms to import LNG as part of their energy plans.

S C I E N C E

A Fuel Cell Future?This private-public sector partnership is exploring new fuel cell technology

An electrochemical cell to convert natural gas to methanol could help create a simple but economically viable use for small

sources of natural gas, according to scientists at the University of North Dakota and Connecti-cut-based FuelCell Energy Inc., who are working together to develop the durable, low-cost and high-performance cell.

Ted Aulich, a senior process chemist with the university’s Energy and Environment Research Center, said methanol is a flexible product with many uses, including fuels, solvents, resins and polymers. Methanol is a kind of “energy curren-cy,” he said, a material that “has a lot of options to

D I G E S T

up to 2.5 million gallons of fuel per year and is currently serving 1 million gallons per year.

NextEra Energy Partners LP is set to acquire NET Mid-stream LLC, which develops, owns and operates seven natural gas pipelines in Texas. The pipelines serve energy customers in south Texas, from residential customers in Houston to process-ing plants in the Eagle Ford shale play area. As part of the acquisi-tion, NextEra Energy will gain 3 bcf/d from the various facilities that are currently a part of NET Midstream, the three largest of which include the 120-mile NET Mexico Pipeline, a subsidiary of Mexican Pemex division Pemex Gas y Petroquímica Básica that connects with Pemex’s U.S.-Mex-ican border pipeline system; the 158-mile Eagle Ford Pipeline in the Eagle Ford shale play, which connects to the Agua Dulce Hub and provides access to additional Mexican markets; and the 156-mile Monument Pipeline, which provides natural gas to Houston and its surrounding communities.

No matter the current season, winter weather is on the forefront of the energy sector’s mind, es-pecially when it comes to natural gas storage. However, the focus of storage could be changing. As a result of record cold and snowfall in recent winters and the transition of power companies from coal to gas, demand for sufficient, or even alterna-tive, natural gas storage options is on the rise. There are opportunities for energy companies that focus on storage year-round. “With the switch from coal to gas in power generation, I think we are going to see more Continued on page 10


AMERICAN GAS

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of the summer peaks. Therefore, storage optimization is something we monitor very closely,” said Donald Barnes, energy manager for the state of Illinois, at the LDC Mid-Continent Gas Forum in Chicago earlier this year.

The southeastern United States could benefit from Marcellus shale gas as FERC reviews the formal proposal for a 564-mile natural gas pipeline that would transport the fuel from Pennsylvania, Ohio and West Virginia down the Atlantic coastline. The $5 billion Atlantic Coast pipeline was proposed as a way to meet demand as energy com-panies in the Southeast are tran-sitioning away from coal power.

monetize.” It also can be relatively easily converted to gasoline and/or diesel-compatible transporta-tion fuels, hydrogen and industrial chemicals.

“This technology has multiple applications,” added Chris Zygarlicke, EERC associate vice president for strategic projects and university relations. “Another example is that it can be utilized to turn methane-rich landfill gas, or possibly even flare gas, into methanol for various chemical or energy applications.”

Aulich also told American Gas that the tech-nology should be simple to install and the units can be stacked depending on the need.

According to a university press release, “The cost competitiveness of natural gas can be increased significantly by converting it to liquids, since liquid hydrocarbons, such as methanol, have up to ten times the value of natural gas on an energy basis.”

Based in Danbury, Connecticut, FuelCell

Continued from page 9 Energy designs, manufactures, installs, operates and services fuel cell power plants. It operates and maintains North America’s largest fuel cell generating station in Bridgeport, Connecticut.

The $3.5 million project is being financed partly with a grant from the U.S. Department of Energy’s Advanced Research Projects Agency, whose stated goal is to develop entirely new ways to generate, store and use energy. The university’s portion of the project is also being funded through matching funds from the North Dakota Depart-ment of Commerce’s Research ND Program.

“This is a fine example of leveraging private-sector dollars with state research funds on a tech-nology that could greatly impact North Dakota’s economy,” EERC CEO Thomas Erickson said.

FuelCell Energy’s team also includes scientists and engineers from Pacific Northwest National Laboratory, the University of Connecticut and the Massachusetts Institute of Technology. —M.V.D.

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.

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“The information provided by the barcodes is very valuable and has helped reduce the amount of manual labor required to capture each facility's manufacturing and installation data. Our intent with this pilot project was to field test LocusView’s tracking and traceability solution, evaluate the collection of sub-foot accurate GPS coordinates, and measure the benefits associated with processing the as-built data from the program’s electronic database rather than paper records.”

– CENTRAL HUDSON GAS & ELECTRIC

L O C U S V I E WLOCUSV I EW.COM PRODUCTS@LOCUSV I EW.COM

T R A C K I N G & T R A C E A B I L I T Y C A S E S T U D Y

Central Hudson, an electric & gas transmission & distribution company serving New York's Mid-Hudson River Valley, sought a mobile GIS solution to provide traceabilty for the materials they installed and for the location of heat fusions.

In anticipation of the new industry asset recording standards, Central Hudson launched a pilot project to test LocusView’s material and fusion traceability technology. Third-party inspectors are using LocusMap with high accuracy GPS and barcode scanning to capture data while performing routine inspections.

Fusion traceability barcodes are printed by the fuser in the field and contain information about how the fusion was performed including fuser name and qualification status, inspector name, and fusion machine. Fusion and material data is then stored in the GIS and is searchable in the future.

Many of Central Hudson's suppliers are delivering pipe and fittings with ASTM F2897 barcodes. Brianna Peak, Associate Section Leader of Gas Operations Engineering at Central Hudson, reports that up to 40% of assets are already barcoded.

The information provided by the bar-codes is very valuable and has helped reduce the amount of manual labor required to capture each facility's manufacturing & installation data.


REAL ENVIRONMENTAL RESULTSAcross the industry, improved efficiency in energy use in their own facilities and improved fugitive emission control is ensuring emissions reductions year over year since 2011. For example, in 2014, emissions reductions totaled 55.5 million metric tons of CO2, equal to taking 11.8 million cars and light trucks off the road or retiring nine 1,000-MW coal-fired power plants and putting one more on half-time work.

INVESTMENTS THAT MAKE AN IMPACTSAY GOODBYE TO GREENHOUSE GASES Five major greenhouse gas-mitigation investments make up a whopping $332.3 billion of the total invested across all sectors (all other technologies combined make up the remaining 23 percent for a total of $431.6 billion). These top five investments include shale gas (30 percent or $128.6 billion), advanced technology vehicles (17 percent or $74.3 billion), efficiency in lighting, heating, air conditioning, etc. (15 percent or $63.2 billion), wind (9 percent or $39.4 billion) and ethanol (6 percent or $26.8 billion). Within the natural gas and oil industry specifically, combined heat and power is another driving factor.

Who’s doing the most to reduce greenhouse gases? The natural gas and oil industry is leading the way, investing an estimated $217.5 billion in greenhouse gas-mitigating technologies between 2000 and 2014—more than other U.S.-based private industries ($102.8 billion) and the federal government ($111.3 billion) combined.

Source: Key Investments in Greenhouse Gas Mitigation Technologies from 2000 Through 2014 by Oil and Gas Firms, Other Industry and the Federal Government, www.api.org/~/media/files/ehs/climate-change/2015-t2-key-investments-in-ghg-mitigation.pdf

$102.8 BILLION

Other PrivateIndustry

FederalGovernment

Natural Gas& Oil Industry

$217.5 BILLION

$111.3 BILLION

2011

2012

2013

2014

FUELSUBSTITUTION

19.8

19.9

20.4

20.9

ENDUSE

24.3

24.5

24.8

25.2

NONHYDROCARBON

9.0

9.2

9.2

9.4

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53.1

53.6

54.4

55.5

SHALE GAS30%

EFFICIENCY, LIGHTING,HEATING, AC, ETC.

15%

ATV17%

OTHER23%

ETHANOL6%

WIND9%

BY THE NUMBERSIt may be a surprise to some, but not to those of us in the industry: According to a report by T2 and Associates for the American Petroleum Institute, the natural gas and oil industry is a major driver in the reduction of greenhouse gas emissions.


The scariest thing about gas leaks is you don’t know

when or where they’ll occur. Itron’s gas AMI network,

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Preventing leaks before they become a threat


PLACESJANUARY

19–21: Operations Best Practices Kick-off Meeting, New Orleans, LA. Contact Mike Bell-man, 202/824-7183, [email protected]

20: NYSSA 2016 Presentation, New York, NY. Contact Liliana Fonnoll, 202/824-7021, [email protected]

25–28: AGA Transition Measurement Committee, San Diego, CA. Contact Ali Quraishi, 202/824-7337, [email protected]

FEBRUARY

16–17: Board of Directors Meeting, Washington, DC. Contact Gary Gardner, 202/824-7270, [email protected]

MARCH

14–16: AGA Finance Committee Meeting, Denver, CO. Contact Liliana Fonnoll, 202/284-7021, [email protected]

APRIL

18–19: AGA Operations Spring Commit-tee Meetings, Phoenix, AZ. Contact Debbie Ellis, 202/824-7338, [email protected]

19–22: AGA Operations Conference, Phoenix, AZ. Contact Debbie Ellis, 202/824-7338, [email protected]

25–29: CS Week, Phoenix, AZ. Contact Sherri Hamm, 202/824-7201, [email protected]

MAY

15–18: AGA/EEI Spring Accounting Conference, New Orleans, LA. Contact Doug Allen, 202/824-7261, [email protected]

18–19: AGA/EEI Property Accounting and Depreciation Training Seminar, New Orleans, LA. Contact Doug Allen, 202/824-7261, [email protected]

JULY

10–12: AGA 2016 Legal Forum, Asheville, NC. Contact Theresa Thoman, 202/824-7072, [email protected]

OTHER EVENTS IN 2016

January 19–21: International Builders’ Show, Las Vegas, NV. Contact Tracy Burleson, 202/824-7229, [email protected]

March 1–3: Technology and Market Assessment Forum, Board of Director Meeting & National Account Workshop, Tampa, FL. Contact Liana Lipkowitz, 202/824-7152, [email protected]

June 7–9: Technology and Market As-sessment Forum, Vancouver, British Colum-bia. Contact Liana Lipkowitz, 202/824-7152, [email protected]

GAS TECHNOLOGY INSTITUTE EVENTS

MAR 14–18 Measurement & Regulator Station Design. Hampton Inn & Suites— Chicago Downtown, Chicago, IL. Susan Robertson, GTI, 847/768-0783; [email protected]; www.gastechnology.org/training

APR 25–29 Marketing Fundamentals for the Energy Industry. Hampton Inn & Suites—Chicago Downtown, Chicago, IL. Susan Robertson, GTI, 847/768-0783; [email protected]; www.gastechnology.org/training

APR 25–29 Gas Distribution Operations. Venue TBD, Pittsburgh, PA. Susan Robertson, GTI, 847/768-0783; [email protected]; www.gastechnology.org/training

TRAININGnatural gas industry

gastechnology.org/training


L O U I S I A N A

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CAMERON PARISH—The nation’s first floating liquefied natural gas vessel has found a home in the Deep South.

Delfin LNG LLC, a subsidiary of Fairwood Peninsula Energy Corp., has announced that it will soon begin construction on a FLNGV at Port Delfin, a proposed deep-water port and floating LNG facility located about 50 miles off the coastline of Cameron Parish. San Francisco-based Bechtel Corp., which is responsible for about a third of the world’s LNG liquefaction capacity under construction today, was recently selected for the front-end engineering and design of the vessel.

Port Delfin will receive natural gas from the Delfin Offshore Pipeline and will have four mooring facilities for FLNGVs. It’s expected that the FLNGVs at the port will be able to liquefy up to 1.32 billion standard cubic feet per day of natural gas—or about 8 million metric tons of LNG per year. Each FLNGV will have a storage capacity of up to 165,000 cubic meters.

In case of hurricanes or other natural disasters, each FLNGV will be able to disconnect and move to protected waters, while the offshore location minimizes near-shore environmental impacts.

According to Delfin LNG, the project is expected to be operational in 2019. It is currently in the deep-water port license application process with the U.S. Coast Guard and Maritime Administration. —Danielle Wong Moores

LOU I S I ANA

AN LNG FIRSTState is home to first U.S-based floating LNG vessel

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An artist’s rendering depicts the Delfin LNG floating liquefied natural gas vessel, projected to be operational in 2019 off the Louisiana coast.


F LOR IDA

Happy LeasingNatural gas appliance leasing saves home-owners from hassle

HIALEAH—Homeowners in south Florida now have an easy, hassle-free way to enjoy the benefits of natural gas appliances.

Florida Home Solutions, a subsidiary of AGL Resources Inc., has announced leasing services for the south Florida market. The company will offer homeowners in Brevard County, Hialeah, Miami and Port St. Lucie the opportunity to lease natural gas appliances. For homeowners, no down payment or upfront costs with standard installation is required, and any repairs needed during the leasing period will be covered at no cost, with all work completed by prequalified, licensed independent contractors.

Florida Home Solutions is the local brand name of Pivotal Home Solutions, a national leader in the home services marketplace. The company is expanding into Florida in response to consumer demand for the comfort and reliability of natural gas appliances.

“For more than 20 years, we have been help-

ing customers across the country take the hassle and stress out of caring for their home,” said Robin Boren, president, Pivotal Home Solu-tions. “We are pleased to now offer affordable appliance-leasing options to Florida homeown-ers so they too can enjoy the benefits of natural gas appliances and the worry-free convenience of a lease.”

Florida Home Solutions will lease water heaters, dryers and ranges, including tankless models, that use safe, reliable, clean-burning natural gas.

According to the Energy Information Admin-istration’s 2014 estimated annual energy costs, natural gas appliances can help customers save on energy costs. For example, in Florida, consum-ers can save up to 37 percent annually using a natural gas versus an electric water heater and up to 51 percent annually using a natural gas versus a propane water heater. —Carolyn Kimmel

WASH INGTON

Trucking It InCNG is poised to enter the Olympic Peninsula

SEATTLE—Washington’s Olympic Peninsula is beautiful and rugged, with its mountains, lakes, forests, waterfalls, rivers, beaches and rain forest.

But it’s not exactly the easiest place to build natural gas pipelines. That’s why Boston-based Xpress Natural Gas is planning to bring truck-loads of compressed natural gas to the energy-starved peninsula.

“The Northwest has a shortage of pipeline distribution to many of the big industries, particularly in rural areas,” Matt Smith, XNG co-founder, told American Gas. “If we can save a company 30 to 40 percent on fuel, every $1 million that a [manufacturing] mill saves goes directly to the bottom line, and that saves jobs.”

Some of the gas will fuel the Port Townsend Paper Corp., which will become the first manufacturing plant in the state to use CNG. Switching from heavy oil to CNG will reduce fuel costs, improve efficiency and help the envi-ronment, according to the company.

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This terminal in Manheim, New York, is an example of what XNG plans to bring to Washington state.


Smith said several other manufacturing companies are poised to sign up. The CNG can also power vehicles, such as those used by the timbering industry, and for colleges, hospitals, agricultural industries and even other utilities that do not have enough capacity.

XNG will build its compression station in the Satsop Business Park in Grays Harbor County and tap into a Williams pipeline that follows the Interstate 5 corridor from Canada. The CNG would then be trucked to the paper mill.

Port Townsend Paper Corp. has signed an agreement with XNG for four or five truckloads of CNG per day, and equipment at the mill will decompress the gas for use in the paper company’s kilns and boilers. The paper mill is converting its kiln and boilers to dual use, so they can run on either oil or natural gas. The plant would operate mostly on natural gas, but could use oil as a backup.

The system should be operating by June, Smith said.

The use of natural gas “will result in signifi-cant emissions reductions, including green-house gas emissions, by converting to natural gas relative to oil, which will be displaced,” mill officials said in a fact sheet on the change.

XNG is the country’s largest provider of what Smith calls “virtual pipelines,” using trucks to deliver both CNG and liquefied natural gas to in-dustries. It has several terminals in the northeast-ern U.S. and eastern Canada. This is its first foray out west, Smith said. —Monica von Dobeneck

O H I O

Permission GrantedPipeline compressor station permits may soon be easier to obtain statewide

COLUMBUS—Ohio’s Environmental Protec-tion Agency hopes to make it a little easier for natural gas companies to apply for pipeline compressor station permits.

Until now, each permit for a compressor station was subject to a lengthy case-by-case application process to see if its equipment met the state’s air emission standards, according to

EPA spokesman James Lee. If the proposal is approved, some companies would be able to use a streamlined general permit instead.

Lee said many of the compressor stations use similar equipment and engineering features and could follow a template for common pieces of equipment. According to an EPA press release, “General permits are an effective means to track and regulate air emissions and can be more ef-ficient and timely for processing.”

Not all compressor stations would qualify for the general permit, Lee said. Applicants would be required to demonstrate that each piece of equipment qualifies for a general permit and agree to meet predefined permit terms, includ-ing installation and/or operating requirements, monitoring, record-keeping and reporting.

Ohio EPA officials would decide which ap-plications would fit the criteria.

Among the equipment that could qualify for general permits are natural gas-fired spark-ignition compressor engines, diesel engines, dehydrators, flares, compressors, equipment that has a poten-tial to leak, liquid storage tanks, truck-loading operations and pigging operations.

Ohio EPA took comments on the proposal in September. At press time, employees were


state watch

reviewing the comments and will incorporate any changes into a new document. Another 30-day comment period will follow before the state organization decides to go ahead with the plan.

Lee said the proposal was prompted by the large increase in natural gas activity in Ohio, especially in the eastern part of the state. He said the state has been issuing about 25 com-pressor station permits a year on a case-by-case basis, which could potentially be decided with a general permit.

Lee said the proposal could make the permitting process more efficient for both the applicant and the reviewers.

C O L O R A D O

Major DriverGovernor is pushing for more NGVs

DENVER—Colorado Governor John Hick-enlooper is a leader in encouraging the use of natural gas vehicles.

In 2012, he joined Oklahoma Governor Mary Fallin in convincing 23 states to sign a memorandum of understanding in an effort to convince manufacturers to build more practi-cal and functional natural gas vehicles. And his reputation as a policymaker and strong advocate for growing the use of natural gas as a transportation fuel led to his invitation last fall to speak at the North American NGV Confer-ence & Expo in Denver.

He has also encouraged other states to adopt alternative fuel programs. That will help lower energy costs, save taxpayer money and lead to energy independence, he said.

Meanwhile, Colorado’s Alternative Fuels Funding Program is distributing about $30 million over four years for fueling stations and al-ternative fuel vehicles. In the past two years, Colo-rado has added 233 natural gas-fueled vehicles to its state fleets, and the state is building a network of compressed natural gas fueling stations.

The state is also offering tax credits to trucks using alternative fuels, including CNG, liquefied natural gas, electric, propane and hy-drogen vehicles. Heavy-duty trucks can qualify for up to $20,000 in tax credits, medium-duty

trucks up to $15,000 and light-duty trucks up to $7,500.

The credits will offset the higher upfront capital costs of an NGV. But the environmental benefits of converting heavy- and medium-duty trucks to natural gas are greater than those for lighter passenger vehicles, according to the state’s Energy Office.

Colorado is a major producer of natural gas. In a statement to American Gas, Hickenlooper said, “Colorado is a national leader in natural gas production, and we value the importance of this resource given the environmental benefits, economic advantage over other fuels and ability to strengthen North American energy security. We will continue to work with key partners to promote the use of natural gas in our transpor-tation sector.”

N E W M E X I C O

Check All of the AboveNatural gas looms large in New Mexico’s new comprehensive energy plan

SANTA FE—Natural gas will join solar, wind and other low-carbon sources of energy as part of New Mexico’s “all-of-the-above” sweeping energy plan, the state’s first new comprehensive energy plan since 1991.

Spurring greater demand for natural gas through tax credits, which could be used to build natural gas refueling stations and purchase natural gas vehicles, is part of the plan. It also recommends exporting natural gas to Mexico.

Governor Susana Martinez recently unveiled the plan, which is called “Seizing Our Energy Potential: Creating a More Diverse Economy in New Mexico.”

Diversifying energy sources will create jobs, help the economy and support the nation’s ef-forts to achieve energy independence, according to the governor’s office. “New Mexico is one of the most energy-rich and energy-diverse states in the nation, and we have an excellent op-portunity to utilize this position to grow our economy and create more jobs,” Martinez said in a statement. “Improving our energy infra-structure, responsibly developing and producing


energy of all types, and better preparing the workforce for the needs of our energy sector are all critical components not only of a strong eco-nomic future, but of helping [to] lead America to energy independence.”

According to the plan, using renewable and low-carbon sources of energy “would dramati-cally improve air quality.”

Other key components of the plan include:• Improving infrastructure, which could

involve plans to export New Mexico’s natural gas to Mexico through the port at Santa Teresa.

• Improving energy workforce training. • Reducing freshwater consumption while

generating energy.• Streamlining regulatory processes. “Regula-

tory balance and timely response from government officials can be achieved with-out compromising on health, safety and environmental standards,” the plan says.

• Exploring new energy opportunities, which could include making public build-ings more energy-efficient and funding up-grades through cost savings from utilities.

The “all-of-the-above” approach includes plans to remove barriers to energy production that exist in each sector of the state’s energy economy. It could also include finding new and better ways to store energy.

N E W Y O R K

Bright Lights, Clean CityA new program plans to retrofit 1,000 properties annually to natural gas

NEW YORK CITY—The Big Apple is working hard to reduce pollution and clean up its air by making its buildings more energy-efficient.

The latest launch toward this effort is the NYC Retrofit Accelerator, a one-stop shop to help owners convert their buildings from heating oil and make other efficiency upgrades. The accelerator will provide free technical assistance and advisory services to help building owners go green, according to Mayor Bill de Blasio’s office.

Switching from heating oil to natural gas is part of the equation, and the city’s utilities have

been active participants in helping New York City clean up its air by expanding natural gas infrastructure.

The program is expected to reduce citywide greenhouse gas emissions by about one million metric tons by 2025, the equivalent of taking 200,000 cars off the road, according to a gov-ernment press release.

It expects to help retrofit up to 1,000 build-ings a year while generating more than 400 local construction-related jobs. It could also save New Yorkers an estimated $350 million a year in util-ity costs, the mayor’s office said.

The program will also provide streamlined information about financing and financial incentives and will help owners with the permit-ting process.

“Business as usual simply won’t do when our very survival is at stake,” de Blasio said in a press release. “That’s why we’ve outlined ambitious and necessary goals for a greener New York City as we work to reduce our emissions 80 percent by 2050—and we’re ensuring that building owners have the tools they need to go green through the NYC Retrofit Accelerator.”

The Retrofit Accelerator builds on the suc-cessful model program of NYC Clean Heat.

As part of New York City’s energy-efficient push, property manager Urban American replaced five boilers with higher-efficiency models and installed a combined heat and power plant at Roosevelt Landings, which together make up a system that operates at 95 percent efficiency. The energy savings will in part allow the co-op to maintain affordable rents for residents, and the system will also be able to power critical systems in the building during emergencies and blackouts, such as the one experienced during Hurricane Sandy.

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state watch

Number 6 heating oil was completely phased out last summer. The accelerator will continue to help buildings convert from Number 4 heating oil. Since 2012, nearly 6,000 buildings in the city have converted from heating oil to natural gas.

“National Grid’s support for the NYC Ret-rofit Accelerator program will help drive energy efficiency upgrades and conversion to cleaner fuels such as natural gas by utilizing energy data and actively engaging building owners,” said Aurelio Mark de Yoanna, National Grid’s man-ager of community and customer management. “Our partnership in this innovative program will help ensure the success of the city’s bold efficiency and greenhouse gas reduction objec-tives and make our communities more resilient and more sustainable.”

Rebecca Craft, director of energy efficiency for Con Edison, said everyone should do their part to reduce greenhouse gas emissions. “The city has made great strides over the years pro-moting clean energy, and we will continue to build on that success,” she said.

C A L I F O R N I A

Compare and SaveState is first in the nation to launch com-mercial benchmarking program

SACRAMENTO—Commercial building own-ers in California will soon have the information they need to evaluate energy usage and identify high-value efficiency projects, thanks to a new state law that is the first of its kind in the U.S.

In October, California Governor Jerry Brown signed into law Assembly Bill No. 802, which implements a statewide benchmarking program for commercial buildings and multi-family housing of 16 or more units. According to the bill: “Building owners should have access to their buildings’ energy-usage information, which enables understanding of a building’s en-

ergy usage for improved building management and investment decisions.”

The new law directs the California Energy Commission to establish a statewide energy benchmarking and disclosure program and enhances the commission’s existing authority to collect data from utilities and other entities for the purposes of energy forecasting, planning and program design. Building owners will then be able to compare their total energy usage to that of similar structures, opening up greater opportunities for energy reduction and spurring investments to improve performance. The result is both added value for property owners and greater comfort for renters.

“California has set high goals to increase energy savings through short- and long-term en-ergy efficiency measures. Effective solutions will be those that provide true value for commercial building owners and consumers. When these groups have access to their building’s energy use compared to similar structures, they are able to make informed decisions to improve perfor-mance,” said California Energy Commission Commissioner Andrew McAllister.

AB 802 was first read this past February and was sponsored by California State Assemblyman Das Williams. “AB 802 resolves two barriers to the governor’s 2030 efficiency goals. Current policy leads to a large pool of stranded energy efficiency savings potential because, in nearly all cases, programs can only provide incentives for energy savings from the installation of equip-ment above current code levels,” Williams said in a statement. “AB 802 would allow these in-centives to be used to help us drastically increase energy efficiency in existing buildings.”

Meanwhile, two cities in California also have their own benchmarking programs. Since 2011, San Francisco has mandated that all nonresi-dential buildings larger than 10,000 square feet annually benchmark energy usage and publicly disclose the results. Starting in December, the city of Berkeley is also requiring that all Berke-ley building owners complete annual energy assessments and publicly report the building’s energy efficiency information in order to un-cover energy saving opportunities. —D.W.M.


Reach more data in more places.Go the distance with the new Sensus® Smart Gateway.Because it’s time to reach beyond meter reading.

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power. Track pressure highs and lows. Deliver alarms. Get insight into pipeline changes.

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SENSUS_84413_SmartGateway_AmericanGas.pdf 1 11/2/15 12:22 PM

C O V E R S T O R Y

THE VALUE OF

TEAMWORK

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Ralph LaRossa, president and COO (center), is proud to work with a solid team at Public Service Electric and Gas to provide quality, affordable energy. From left to right: Joe Forline, vice president, customer so-lutions; Kim Hanemann, senior vice president, delivery projects and construction; LaRossa; Greg Dunlap, vice president, customer operations; Rick Thigpen, vice president, state governmental affairs; Jorge Cardenas, vice president, asset management and centralized services.


TEAMWORK

Incoming AGA Board Chairman Ralph LaRossa has fond memories of the many opportunities afforded him. It’s why he’s tackling his latest role with a mission: to bring more talented young people into today’s utility workforce. BY JAKE RUBIN

In his office, the first thing Ralph LaRossa wants to show you is a pair of scissors and a wooden bat.

They are easy to miss amid memorabilia signed by New York Giants quarterback Eli Manning and a personal note from Elmo of

“Sesame Street,” LaRossa’s co-star in a television commercial about emergency preparedness. The president and chief operating officer will even bypass numerous plaques commemorating his work for more than 30 years at Public Service Electric and Gas, New Jersey’s largest provider of electric and gas service, because he wants to tell the story properly, and that means starting at the beginning.

“I’m a son of an immigrant,” he said. “My dad is the youngest of eight brothers, and they came here from Italy in the 1950s. My mom’s parents also immigrated to the country then. That background shapes me to a great degree.”

Approximately three feet long and two inches in diameter, the bat belonged to his grandfather on his mother’s side. He used it to stop the trains as a brakeman on the Erie Lackawanna Railroad, which ran from New Jersey all the way out to Illinois. Meanwhile, the scissors belonged to Ralph’s father, who used to work in New Jersey’s garment industry. “I always keep those here to remind me about real work,” said LaRossa. “I worked for my dad for four summers, loading trucks. I learned a lot from watching him and the way he man-aged people. He was tough on everybody, but he always found a way to watch out for his employees.”

Growing up in Rutherford, New Jersey, LaRossa surmises that he is probably one of only a few of his childhood friends who went to college, commuting to the Stevens Institute of Technology in Hobo-ken. A chance encounter on the last day of job recruitment would dictate the rest of his career. “I heard that Public Service was there, and I always wanted to know what those guys in the white cars did,” the president and COO recalled. “So I went for the interview and fell in love and haven’t left since.” That was 1985. LaRossa soon married his high school sweetheart, Marty Ann Sutphin, and at 52, he has always lived in New Jersey; his parents, brother and sister live nearby; and the LaRossas’ son is a senior in high school, and their daughter is a sophomore in college.

If Ralph LaRossa’s life sounds like the American dream, it is, and that is not lost on him. He is incredibly proud of his fami-ly history, his company, his community and the future they are building. Moreover, he has a plan to make available to more young people the opportunities that were offered to him through the utility industry. As the chairman of the board of the American Gas Association for 2016, Ralph LaRossa wants to spread the message that natural gas utilities are investing in their communities, hiring and developing the next generation of the energy workforce.

A Utility Workforce Plan“Welding a pipe together is a cool job, and it makes pretty good money,” said LaRossa. In fact, those working on a utility crew can earn more than some office workers, and


according to LaRossa, we may have done a disservice to our economy by telling all students that their professional goal should be to sit at a computer. Instead, he likes to sell young audiences on the bright future of the industry. “I can guarantee you that the cellphone that we’re using today won’t be the same cellphone we’re using in five years. That technology is subject to trends, and therefore it is not built to last. But I can also guarantee you that the way I heat my house with natural gas will not change in the next five years, or 10, or 20. We have an abundance of this resource, and our system is built to be safe and reliable for generations. That stability is not only helping to meet our national energy goals, but provid-ing good jobs and food on the table for the families of employees in the industry. That is something we need to talk more about to help get kids more engaged.”

Active in educational efforts in his community, LaRossa is the chairman of Montclair State University and serves on its board of trustees. He speaks frequently to student groups and civic forums on the subject of how to spur economic growth in their area, and he shines a spotlight on preparing students for a successful and fulfilling career by asking a series of ques-tions: “Are you OK with manual work? Do you want to interface with people? Do you want to offer people an essential service? If they continue to say yes, yes, yes, then those are the folks you want.”

A diverse and motivated workforce is the key, LaRossa believes, to continued success in the energy sector, and PSE&G is a prime example of that success. In fact,

PSE&G does not require applicants to have specific skills or education and will hire and train high school graduates. The company has a gas distribution apprentice program that includes 12 months of training and an appliance service program that is 30 months long. LaRossa is quick to measure the success of these programs, touting 20 percent growth in their union workforce

since he has been president and COO. His pride also stems from how these programs mirror his own journey.

In 1985, LaRossa was hired as an associate engineer in the gas department and spent his first six months working with crews in the field. He still remembers his first job installing a pounds-to-inches regulator. “I knew that was a really good way to learn—meeting people and seeing what the workforce was all about, but also understanding the business to gain context for how long some things take or what challenges exist.”

After about eight years in the gas department, LaRossa was asked to be a project manager for the company’s first mo-bile dispatch work management system for distribution crews, a short-term assignment that exposed him to both information

technology and the electric side of the busi-ness. Following that experience, there was a need for a manager on the electric side, and LaRossa decided to try something new.

The decision did not come easily. LaRossa vividly recalls an AGA Operations Conference and Biennial Exhibition in 1993 at the Walt Disney World Swan and Dolphin Resort in Orlando, where he said

goodbye to his gas colleagues. “For a gas guy to move to electric was unheard of,” he said. “But I walked into an orga-nization loaded with good people, and it worked out really well. Bob Piano, an assistant division manager in electric distribution at the time, took me under his wing and taught me a great deal about business. I was really fortunate. That’s why I wound up staying here as long as I have—there are so many different things that

you can do in the company.” He said then he had a feeling he would be back on the gas side again and was glad to make good on this promise.

Meeting the Challenges During his years with the company, PSE&G has been tested. LaRossa worked on electric transmission restoration after a widespread power outage throughout parts of the northeastern and midwestern United States in August 2003. In 2012, Hurricane Sandy left more than 1.7 million PSE&G customers without power. The 2013 Super Bowl was also a learning experience. After a partial power outage at the Superdome in New Orleans during 2012’s Super Bowl suspended play for 34 minutes, all eyes were on MetLife Stadium in East Ruther-ford, New Jersey. Internet chatter in the

C O V E R S T O R Y

According to LaRossa (left), PSE&G’s philosophy has to begin with its employees.


days leading up to the event even men-tioned attempts to repeat the occurrence by hacking into the utility system. But PSE&G was prepared and there were no problems during the game, which LaRossa said is a testament to his employees, their experience and their intimate knowledge of the system. “Safety is our top priority. This is a business where you need to understand your system, you need to understand the processes and you have to make sure that you’re operating it effectively. Those learn-ings and that skill come over time. It is not something that you teach somebody by handing them a book.”

Both he and his team learned much from these experiences. They have re-mained vigilant and, again, continue to focus on hiring people with diverse back-grounds and experience to best support the company. For example, citing the impor-tance of staying in front of challenges, the company recently hired the former special agent in charge of the FBI office in Newark to run its security department.

According to LaRossa, PSE&G’s phi-losophy has to begin with its employees. “If we have people who are dedicated and are focused on delivering good-quality service, they’re going to serve the customers in the best way possible.” PSE&G now serves 1.8 million gas customers and ranks highest in gas service business customer satisfaction in the East, according to the 2015 J.D. Power and Associates study. They were also named to the America’s Best Employers list by Forbes magazine for the same year.

Also, PSE&G and its customers benefit greatly from geography. They have several transmission lines in the area bringing plen-tiful and affordable gas from shale plays in Pennsylvania—a new reality for this utility veteran. “I remember in 1985 being told that there was about 30 years’ worth of gas left, maybe 40. We weren’t even hooking up some customers back in the ’80s because we weren’t sure there was going to be enough natural gas to serve them. Over 30 years later, there’s no end in sight. The future is so bright that I think the big question for us is

how we ensure we have the infrastructure in place to grow its use and expand delivery to more homes and businesses.”

That includes upgrading and moderniz-ing PSE&G’s own system, which is among the densest in the country with 4,400 miles of cast-iron pipelines. Fortunately, LaRossa’s predecessors started to selectively replace cast-iron mains 40 years ago us-ing hazard indexes developed over time. LaRossa praises their foresight in replacing the high-pressure and small-diameter cast iron first.

Recently, PSE&G was approved by the New Jersey Board of Public Utilities for a $905 million plan to replace up to 510 miles of gas mains and 38,000 service lines over a three-year period. Since 2009, residential gas heating bills are down 47 percent in PSE&G’s territory because of the lower commodity cost. The utility and its regulator agree that now is the time to accelerate this work.

LaRossa recognizes that not everyone is feeling these boom times, and he commends

HOME TEAMRalph LaRossa and his wife, Marty Ann Sutphin, have been coaching youth sports for more than a decade. LaRossa coaches Little League Baseball and ran the youth football program in his community, and Sutphin, an All-State basketball player in high school, started volleyball and softball programs for young girls in town. While Sutphin, vice president of health care management for a major pharmaceutical company, credits her success to the values and skills she learned being part of a sports team, LaRossa has many fond memories of his time playing youth sports and the bonds that form from being part of a team.

Similarly, many of LaRossa’s childhood friends are part of the team at PSE&G, and his brother works in the gas department in northern New Jersey. LaRossa said his father considered working for PSE&G as well when he was in high school, and several of his friends joined the utility. The situation is not unusual. LaRossa said PSE&G is proud of the many families who have had multiple generations work at the company since its founding in 1903. —J.R.


his company’s willingness to support those who are less fortunate through the Low Income Home Energy Assistance Program and other local programs.

“There are still folks who are challenged economically

no matter what we do. And we can’t forget about that,” he said as

he lists the programs to help those locally. There is the Payment Assistance for Gas and Electric program, an annual assistance program that is funded by the Board of Public Utilities and designed to help low- to moderate-income households across the state that are experiencing economic hard-ship and struggling to pay their electric and natural gas bills. NJ SHARES is a statewide nonprofit energy-assistance program that assists moderate-income households that do not qualify for federal or state energy programs such as LIHEAP. PSE&G is a contributor to NJ SHARES and encourages its customers to donate as well.

The Sky’s the LimitOpportunities for the growth of natural gas are limitless in LaRossa’s eyes, driven primarily by its low price. “If you had told me eight years ago that we would be running natural gas-generating plants here for cheaper than our nuclear fleet was running, I would have told you, ‘You’re crazy,’” he deadpanned. He foresees continued penetration in the direct use market as natural gas maintains a price ad-vantage over heating oil, its main competi-tor in the Northeast. He also predicts that same trend will see commercial vehicles continue to convert to natural gas as their primary fuel source. On a recent visit to the western United States, he was amazed by the number of natural gas refueling sta-tions he saw. “I give my predecessors, guys like Ron Jibson, a lot of credit. They’ve been pushing natural gas for transporta-tion for years and have made amazing progress. With the way this industry is going and with their leadership, it will continue to grow.”

LaRossa has enjoyed his time on the

board of directors and said previous AGA chairs have set the mold for him by articu-lating a vision that stems from their unique perspective on the industry. He is eager to bring his own viewpoint to the role, but says the value of AGA is in telling the natural gas story consistently and frequently. “AGA continues to educate the public and tell the story about the safe and reliable service and the economic benefits of the product.”

But from his office overlooking New-ark’s downtown where memories of the hard work of his father and grandfather linger, LaRossa reiterates his focus on spreading his message of a young, diverse utility work-force throughout the country. “We can’t look the way utility companies looked 50 years ago. We have to look like the custom-ers we are servicing. And it’s a different cus-tomer base. If you are going to be trusted in the communities, you’re going to be valued in the communities, you have to be part of the communities. And the only way you are part of the communities is if your workforce comes from the communities,” he said.

The incoming chairman also points to AGA’s leadership in this area, both in the makeup of the association’s workforce and the recent creation of the Diversity and Inclusion Task Force, formed at the request of the AGA Leadership Council to create programs and share best prac-tices for fostering a more diverse and inclusionary pool of talent at natural gas utilities. He has confidence in this effort because of the atmosphere of cooperation and collaboration among AGA’s member natural gas utilities, unlike anything he has seen in other industries. He views his role as chair in 2016 as mainly to carry on that tradition. “AGA is an organization you’re happy and proud to be part of. I am happy to be sitting at the helm for a year, but at the end of the day, this is an organization that works together, there is no one person that is in charge. We all talk things through. I think that teamwork is really, really important.”

After all, whether in the boardroom or out in the field delivering energy to custom-ers, nothing is more important to Ralph LaRossa than having the right team. u

GARDEN STATE PRIDE“When my family came to the United States, they all chose to come to New Jersey. Part of it was that’s where the boat landed, but the boat also went to other areas. They chose to come to New Jersey because of the opportuni-ties that existed. We love it here. There is a coast and mountains. There is great food, arts and en-tertainment. And you are only a few minutes from New York City.

“Unfortunately there has been some high-profile entertainment that has given this state a bad reputation, but what you see on television is a part of New Jersey, but it is not all of New Jersey.

“I had a work ethic instilled in me by my family. They were im-migrants trying to make a life for themselves here. There are a lot of people like that. They’ve raised their families here based on hard work and good-paying jobs. They all stayed, and that work ethic still exists in large part.

“We take pride in our commu-nity and pride in our state. No-body likes to get beat up in the media the way we have been. But there are still immigrants coming here. This is still a place that has opportunities for folks who are willing to work hard.”

C O V E R S T O R Y


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F E A T U R E

HOMEWith new single- and

multifamily homes on the upswing, natural gas utilities are leading the way toward innovative solutions to further the housing market’s recovery.

BY CAROLYN KIMMEL

RIGHT AT



There’s nothing like a healthy dose of optimism to start off the New Year, and finally—after several years of wondering just how long a shadow the 2007–2009 recession would actually

cast—there’s good news in the residential housing market.

Multifamily housing starts have es-sentially recovered to levels approaching normal, and single-family housing starts, while still only about half of what they were in early 2000s before the housing boom, are increasing yearly.

“We had the worst recession since the Depression, and it has taken a lot of time to recover,” said Robert Denk, senior economist with the National Association of Home Builders. “We are seeing increases in single-family housing starts each year, and we do expect that to continue.”

The NAHB projects 1.1 million housing starts this year, up from just slightly over 1 million in 2014. By the end of 2016, the projection is for 1.29 million housing starts.

At 647,000 last year, single-family housing starts are expected to increase to 719,000 by the end of this year and jump even more in 2016, when they are pre-dicted to be at 914,000, according to the NAHB. While 2014 saw 354,000 multi-family housing starts, the NAHB expects 387,000 such starts for 2015.

The multifamily sector recovered faster in part because many previous homeowners became renters in the mortgage foreclosure crisis, Denk said. In the aftermath, lending standards seized up but are now easing, boost-ing the number of would-be homeowners.

Plus, builder confidence in the market for new construction was optimistic this fall, according to the NAHB/Wells Fargo Hous-ing Market Index, which registered a one-point increase to a level of 62 in September, the highest reading in 10 years. And builders indicated that buyer traffic and current sales

conditions were on the upswing. Meanwhile, optimism among builders is

mirrored in the world of natural gas utilities and appliance manufacturing, where those in the know say there’s a noticeable upswing in use of natural gas for space heating, water heating and home appliances.

“New construction is up significantly, and builders are trying to find ways to differentiate their houses from the other new houses down the street. As consumers are looking to compare which builder is building the more efficient house that will result in lower energy bills down the road, natural gas builders are looking attrac-tive,” said James York, vice president of engineering for Rinnai America Corp., a gas appliance manufacturer specializing in high-efficiency tankless water heaters and home heating systems.

DT E E N E R GY

Natural Gas on ParadeIn Michigan, most builders build with natu-ral gas where possible, but in an effort to get builders to put in more burner tips, DTE Energy came up with a unique incentive.

DTE Energy partnered with a builder in each of its larger metropolitan areas

of Grand Rapids, Traverse City and Ann Arbor to encourage the “outdoor room” concept in showcase homes built for the annual Parade of Homes tour.

Each of the three builders agreed to uti-lize five natural gas appliances in the home and then received $10,000 from DTE toward gas appliances that could be used in the outdoor room, a space that could include poolside areas, porches, decks, screened-in rooms and four-season rooms.

“Typically customers don’t think of natural gas for outdoor rooms because they are so focused with what’s going on inside the home,” said Christine Cole, residential sales manager for DTE. “Outdoor rooms are a growing trend, and we wanted to say, ‘Hey, think about natural gas.’ Especially in Michigan, using natural gas outdoors will extend the use of the outdoor room in the shoulder seasons of April/May and September/October.”

Builders like Troy Schrock, owner of Epique Homes Inc. in Grand Rapids, took DTE up on the offer and featured natural gas products to create a backyard escape with a cozy ambiance unlike anything potential clients had seen before.

“As a builder, I’m always looking for ways to make people want to build new.

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DTE Energy created unique builder partnerships to encourage the use of natural gas in outdoor rooms and poolside areas.


I always say my biggest competition isn’t other builders; it’s the existing market of homes. When people see gas lights on the front and back porches and gas fire pits in the backyard, they want it, and they can’t necessarily get it by buying an existing house. So, it gives them a reason to say, ‘Maybe I’ll build,’” he said.

At pre- and post-Parade of Homes receptions, customers invited by DTE and the builders raved over what they saw—cozy fire pit bowls that allow for extra time out under the stars, Tiki torches for mood lighting and grills that plug into quick-disconnect stainless steel boxes, providing access to the natural gas line and no wor-ries about running out of propane in the middle of flipping burgers for company.

“We had people demonstrating how natural gas cooking can work without the inconvenience of propane. It became about education: You don’t have to run to the store to exchange your propane tank,” said Suresh Bhargav, principal marketing spe-cialist for DTE Gas Co. “This gas plug sits on your wall just like an electrical outlet.”

The partnership paid off—almost half of the 71 houses in the Grand Rapids area

Parade of Homes had outdoor rooms fea-turing natural gas appliances, Bhargav said.

“The education piece works,” he said. “It was a very positive experience to work with builders to make sure they are in sync with what natural gas can do to differenti-ate their homes and what customers can enjoy. It gets our message and our name out into the community.”

It certainly worked for Schrock, who said the experience definitely makes him more likely to feature and suggest natural gas in future outdoor rooms of homes he builds.

“A lot of people think they can’t afford it, but it can be done at a medium- and low-price point, even if it’s just a plug-in for a gas grill. The payback over time is there,” he said.

XC E L E N E R GY

The Business of Hot Water Who doesn’t want to save money on their energy bills? For an elderly person on a fixed income, saving money on heat or hot water can mean food on the table.

So, when the Housing Authority of the City of Pueblo wanted to build a new elderly

housing complex in Pueblo, Colorado, the Authority’s architect Gary Trujillo knew he wanted to avoid water heater and furnace headaches similar to those at the Authority’s Union Plaza Apartments’ location—and he wanted to save residents money.

For its new build at Ashwood Apartments and a retrofit at Union Plaza, the housing authority chose Rinnai tankless water heaters, an energy-efficient system that uses a gas-powered heat exchanger to heat water when it’s needed. The innovative technology allows for water to heat when water flow is detected, resulting in continuous hot water.

Very important in an apartment setting, the system delivers hot water to multiple water sources at the same time, maintaining a constant temperature set by the user.

“The beauty of the Rinnai tankless is that you get a high-energy product without sacrificing performance,” said Rinnai’s James York.

The company has seen an increase in the use of tankless water heaters due to cost issues. Heating water is the second-highest cost in the home after space heating, and tankless water heaters can save a homeowner 20 to 39 percent, York said. New water heater energy efficiency standards set by the federal government last April have also im-pacted the move toward tankless as home-owners needing to replace tanks or builders putting in new tanks are facing much more expensive tank options than before. And code issues, particularly in California, are encouraging use of more efficient products, noted Joe Holliday, senior director of busi-ness and product development at Rinnai, based in Peachtree City, Georgia.

“Most of California’s new construction is going to gas tankless, and California tends to lead the country in change,” he said.

At Union Plaza, the Authority did a retrofit for 44 apartments served by two boilers that had developed problems due to a design defect in the building. The boil-ers were replaced with four tankless water heaters. The Authority kept the original 1,000-gallon storage tank as a buffer for peak usage times.

Ashwood Apartments was a new build of 25 units, each fitted with a Rinnai tank-

F E A T U R E

Recognizing that housing is dependent on a stable, growing economy, here are some factors impacting the current picture, as presented by David Crowe, chief economist, National Association of Home Builders:

• Because of the severe damage to the economy and to housing, it will take more consumer confidence, more jobs and more consistent recovery for the housing market to fully recover.

• Housing is expected to continue its re-covery because employment is expected to continue its recovery. NAHB’s forecast for additional jobs calls for 3 million more this year and next and 3.1 million in 2017.

• The number of people passing the age of 35 is expected to continue at the rate of about 4.3 million per year. At the same time, the number of people pass-ing the age of 65 is expected to fall

from nearly the same as the job-entry age level to about 3.4 million. In other words, there will be solid and consistent population additions to the labor force, but not as many departures.

• Forming a household is also important to home building since every net addition to the number of households calls for an additional house. Household formations were way off their expected levels of about 1.1 million per year throughout the recession and recovery, but are now finally showing some return.

• Interest rates will rise as the economy improves and more demand on capital markets arrives from more sectors. However, as some of the overreaction to the economic bust is removed from regulations and legislation passed in the heat of the recession, we will see more people eligible for a mortgage, and the rate rise will have less effect.


less water system partnered with a hydronic furnace to provide heat.

“Instead of a typical furnace, this hy-dronic furnace has a hot water coil powered by the tankless water heater that warms the air as it passes by, and that’s a more com-fortable type of heat, not as dry,” Holliday said. The system is also unique in that it senses when hot water flow is a priority.

The savings came in right away for the Authority, which saw a 70 percent drop in gas costs at Union Plaza, according to Trujillo.

Three years later, with those savings in mind, the Authority built the Villas at Oakshire, detached single-family homes fit with the same natural gas system. Resi-dents there save about 40 percent of gas costs over similar units using conventional furnaces, Trujillo said.

The success of the Pueblo projects has even opened the door to many more new builds and retrofits using natural gas.

Xcel Energy, the natural gas provider in the Pueblo area, has worked closely with the Housing Authority of the City of Pueb-lo for years and considers it to be a very strong partner in natural gas demand-side management efforts in southern Colorado, said Bill Conrad, manager, energy efficiency marketing for Xcel.

“In late 2013, with En-ergy Outreach Colorado also serving as a partner in this effort, the company provided rebates for some 294 high-efficiency furnaces through the Single Family Weather-ization Program. We hope to continue these efforts into the future,” he said.

WA S H I N GTO N GA S

Go Big—At HomeAs large-property owners are increasingly looking at where they can create value, capital improvements in energy systems are some-times overlooked but can make a big difference.

For example, Washington Gas Light Co. is involved in a multifamily conversion project called Cider Mill Apartments in Gaithersburg, Maryland, that promises to do just that. The 864-unit complex is going from a 1971 boiler system to an energy-efficient tankless water system, featuring a Rinnai tankless hydronic system with air handler and cooling coil.

“We like the size,” said Scott Altman, executive vice president of the Donaldson Group, the Rockville, Maryland-based owner of Cider Mill. “With new legislation and new regulations coming out for stand-alone water heaters, space requirements were an impediment.”

The conversion means that the com-plex is going from 12 big meters to 864 individual meters, “which just grew our market share of meters by a lot,” said Jen-nifer Eugene, specialty sales manager at Washington Gas.

While the conversion will lower the energy usage at the property, which will save the property owner money, it will also allow the tenants to participate in energy efficiency. Since the utility bill will go to individual tenants rather than being part of

their rent, they can take more responsibility in their energy usage. “Before, if a resident was on vacation for a month, they would still get the same gas bill as the person who was there,” Altman said. “Now whatever is actually used in their apartment is what they will pay for.”

To help the developer, Washington Gas plays a role in not only supplying energy to the building, but also developing resources to help make energy improvements, Eugene said. For example, Washington Gas provided financial assistance to help with the gas pip-ing needed to deliver the gas from the meters to the individual equipment.

“With natural gas prices and the ef-ficiency you get, we know it’s the best choice,” Altman said. “In future projects, we intend to use gas instead of electric.”

“When they promote their properties, they can emphasize they are energy-efficient, which is very attractive to prospective ten-ants,” Eugene added. Plus, she hopes word of mouth from the success of this unusually large project will create awareness among other property owners. “It’s been a joy to work on this project and to be part of the energy-efficient movement,” she said. u

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Washington Gas was involved in the conversion of Cider Mill Apartments to

a more efficient tankless water system.


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.

J O B S

CORPORATE CONTROLLERResponsible for the accounting, financial report-ing and tax functions of the company. Including handling financial consolidations, internal and external reporting, SEC compliance, tax plan-ning and compliance, regulatory reporting and compliance, internal controls, coordination of the annual audit and oversight of financial systems. Functional leadership of 30 employees. Apply at www.theasterconsulting.com.

DIRECTOR, COMMERCIAL & MARKETING OPERATIONSResponsibilities are leading and directing the business units commercial area of operations, transportation & scheduling, contract and service agreement management, customer negotiations and marketing. Direct point of contact with existing customers and potential customers, contract ne-gotiation, management of communication media channels and the identification of new services.

Apply at www.theasterconsulting.com.

ENGINEER I UGI Energy Services is seeking an Engineer I to join its team in Wyomissing, PA. This role is responsible for designing facilities for capital proj-ects, creating specifications for new equipment and ensuring code compliance. This position also provides technical support during all phases of the project, including development, design, construction and commissioning. Qualified candidates can submit their resume to [email protected]. Learn more about us at www.ugies.com.

LAND & ENVIRONMENTAL PROJECT MANAGER UGI Energy Services, LLC is in need of a Land & Environmental Project Manager to join its team in Wyomissing, PA. The position will split time between the office and the field. In this position you will meet with landowners, attend public meetings and will develop, update and maintain compliance for all company environmental poli-cies and procedures. Qualified candidates can submit their resume to [email protected]. Learn more about us at www.ugies.com.

MANAGER TRANSMISSION PIPELINE INTEGRITY AT WASHINGTON GAS (WG) Responsibilities: Run WGs DOT Integrity Man-agement program for transmission and providing support for the integrated high-pressure systems.

Leads the Transmission Integrity Management Program (TIMP) & provides input into designing and implementing preventative and mitigative measures as a result of the TIMP risk model, assessments and findings. Work continuously to improve transmission and high-pressure system safety and reliability.

Requirements: bachelor’s degree in engineering, NACE certification; minimum 3 years’ supervi-sory experience; 10 years’ experience within the natural gas industry that includes 5 years in corrosion & transmission integrity management.Job location: Springfield VA. Visit www.wgl.com/careers and apply online.

SENIOR RESERVOIR ENGINEERDTE Energy, a diversified Fortune 500 energy company and winner of the Gallup Great Work-place Award 2013, 2014 & 2015 has a Sr. Reservoir Engineer opening in the Gas Division. B.S. in petroleum or geological engineering, 5 years oil/gas industry experience needed. Must be able to develop/manage budgets and have vendor management. Professional Engineer Registration is a plus.

Interested applicants must apply at www.dteen-ergy.com/careers REQ #08059

SENIOR PROJECT ENGINEERHolland Engineering is aggressively seeking an experienced Sr. Project Engineer to join its South-field, Michigan, office. Candidate must have a minimum of 8–15 years of mechanical engineer-ing and design experience with an emphasis in the gas and oil industry. A professional engineer-ing license in the state of Michigan is required. Demonstrated experience with products including AutoCAD and Micro Station will be beneficial along with proficiency in the full suite of Microsoft Office products.

The position will involve coordinating, directing and supporting assigned pipeline projects from conceptualization to completion. In addition, the candidate will have proficient knowledge & be heavily involved in the design, construction, operation, maintenance and regulations associ-ated with natural gas transmission and distribu-tion systems; prepare project proposals; establish and maintain primary contact with clients; and prepare schedules to assure projects are on time and within budget. The successful candidate will supervise engineers, technicians, designers and other staff as required.

The ideal candidate will possess strong written and oral communication skills and be able to interact professionally with staff and clientele. Holland En-gineering has a wide range of clients and projects, and therefore, the position requires an individual with a strong technical background and analytical skills that can quickly evaluate project requirements and apply the most effective resources.

If you are interested in becoming a member of a successful company that strives for quality work and client satisfaction, we would like to hear from you. We offer full benefits, competitive wages and a friendly, professional work environment. Holland Engineering is an equal opportunity employer.

Email or send resumes to [email protected], 220 Hoover Blvd., Suite 2, Holland, Michigan 49423, attention Rose Bays, Human Resource Manager.

VICE PRESIDENT OF RATES & REGULA-TORY AFFAIRS Responsibilities include overseeing the rates and regulatory affairs for the interstate gas pipeline operations in Delaware, Maryland and Pennsyl-vania, the natural gas distribution operations, the propane distribution operations, and nonregu-lated operations in Ohio. Liaison with the Public Service Commissions and FERC. Direct oversight of all regulatory filings.

Apply at www.theasterconsulting.com.

SYSTEM ENGINEER IIOkaloosa Gas District is seeking qualified candi-dates to fulfill the System Engineer II position within the District. Location: Valparaiso, FL. Starting Salary: $67,163.20. The successful applicant will be responsible, but not limited to, the following:

• Manages all engineering activities including plan design and cost analysis, pipeline construction, maintenance and rehabilitation.

• Approves plans, specifications, and designs for projects submitted by contractors and the Depart-ment of Transportation.

• Responsible for the Cathodic Protection design, corrosion monitoring, and the development and implementation of the Districts Integrity Manage-ment Plan.

• Oversees the management and maintenance of system maps and maintenance/modifications to regulator station.

Gas experience preferred but not necessary. To learn more about us, this position or how to apply, visit www.okaloosagas.com/about-us/job-opportunities.


GENERAL INFORMATION

Debbie [email protected] 202-824-7338

SPONSORSHIP OPPORTUNITIES

Annemarie O’Donoghue [email protected] 202-824-7032

Look for the conference program and registration details atwww.aga.org/OpsConf2016 beginning in January.

More than 100 presentations by industry experts will address relevant and timely topics, including:

• best practices implementation • case studies (operations related)• construction and maintenance • corrosion control • damage prevention• employee safety• engineering• environmental issues (PCBs,

air emissions, storm water)• excess flow valves • gas control • gas operations technologies• gas quality• GIS/GPS applications• integrity management –

distribution & transmission• LNG • MAOP verifications• measurement – distribution

& transmission• odorization issues• operations planning & support• pipeline safety• pipeline system planning & design• plastic materials • public awareness programs• purging operations• regulatory compliance• safety management• technical training & knowledge transfer• underground gas storage • utility & customer field services • work management systems

…and much more!

Conference attendees are eligible for Professional Development Hours.

Safety & Operational Excellence – Across the Globe!

ARIZONA BILTMORE PHOENIXAPRIL 19–22


Want to get right to the heart of the core strategy of

your business? Start with an active and healthy

employee wellness program. BY HENRY ALBRECHT

1. DESIGN THE PROGRAM TO CATER TO YOUR SPECIFIC WORKERS.

Wellness programs aren’t a tough sell if you create activities or challenges that ap-peal to the personalities of workers in that workforce. For example, workers who are out in the field using their hands may get more involved if the program appeals to their competitive spirit. A challenge focus-ing on which team walks the most steps in a weekend or who goes the most months without an accident report could appeal more to that group than private tracking of meditation or mindfulness.

To keep wellness programs authentic, challenges should focus on issues related to your employee’s jobs. For one energy com-pany, we created challenges about wearing sunscreen geared toward those who work outside. We’ve also created financial chal-lenges for employers who want to increase the financial health of their workforce.

2. USE WELLNESS TO UNIFY YOUR GEOGRAPHICALLY DIVERSE WORKFORCE.

While tailoring a program to appeal to the personalities of specific groups of work-ers is important, a wellness program can also unite and unify a workforce that is diversified and distributed geographically. You may have people out in the field, on offshore platforms, driving trucks and vans, or working at your headquarters. A wellness program can unify all of these workers through a common cultural bond and com-

Wellness isn’t just an HR buzzword. It’s a proven way to increase employee

engagement, retention, safety and health—which is crucial for energy com-panies looking to retain current employees and attract the next generation of workers.

According to research, when employ-ees sincerely believe that their company cares about their well-being, they’re 38 percent more engaged than those who don’t feel appreciated. They’re also 17 percent more likely to still work for the company in one year, 28 percent more likely to recommend their workplace and 18 percent more likely to go the extra mile for their employer. Employees also are 10 times less likely to feel hostility toward their organization.

Taking this even further, the right wellness program actually connects to the core strategy of a business. For energy companies, that strategy is extracting and delivering energy safely. “Employee safety” may mean something different to every energy brand. However, investing in employee health and well-being can have a massive impact on safety, compliance and engagement across the board.

Here’s how to create a successful well-ness program for you and your employees.

B U R N E R T I P S

HOW TO IMPLEMENT A WELLNESS STRATEGY

mitment to values, health and safety. The best way to unify your workforce

is through technology. A worker on a rig in the middle of the ocean can connect to the wellness program through a smart-phone and have the same experience as someone at the main office who might log wellness data on a laptop.

For example, Williams is a Tulsa, Oklahoma-based energy infrastructure company that Fortune magazine named the Most Admired U.S. Energy Company for 2015. Company employees, along with eligible spouses or domestic part-ners, can register for the Williams Way to Wellness program, accessible from most devices. According to statistics, more than 50 percent of employees actively participate over any two-week period, and more than 30 percent have participated in a social challenge. The social challenges help participants connect with their peers and coworkers, creating camaraderie and additional motivation, encouraging them to form teams and work together or to compete with each other.

3. ENGAGE WORKERS’ FAMILIES.

As the Williams example demonstrates, in-volving a worker’s spouse or partner not only helps the employee, but the whole family as well. It makes them think about health and well-being as a family, and it also leads to higher levels of engagement in the wellness program if the spouse is on board.


This is especially true in financial chal-lenges, assessments and activities around reducing financial stress. If the spouse is on board, it’s easier for the employee to participate in healthy activities, like utiliz-ing a Health Savings Account, contribut-ing to a 401k or even participating in pack-a-lunch challenges.

4. WORK WITH YOUR UNIONS.

At many energy companies, the workforce consists of both union and nonunion work-ers. Sometimes these unions negotiate spe-cific packages and rewards for wellness that are different from the rest of the employee population. By using a platform, energy companies can better manage the wellness experience for all employees, ensuring they’re given the activities and rewards that are most relevant for them. So union members will

PROFILE: TRAVIS KAVULLA, INCOMING NARUC CHAIRMANA Harvard graduate and former journalist, 31-year-old Travis Kavulla recently became one of the youngest commissioners ever named to the role of chairman of the board and president of the National Association of Regulatory Utility Commissioners. The Montana native is also serving his second term on the state’s Public Service Commis-sion and talks to American Gas about key issues facing economic regulators in the coming year.

FROM SCHOLARSHIP TO CAREERIn 2013, the AGA Scholarship program began providing $1 million in funding for students interested in pursuing careers in the natural gas industry. We meet some of the inaugural awardees, who have now transi-tioned from students to natural gas workers, and talk about the impact of the scholarship, their first year on the job and the valuable lessons they’ve already learned from the natural gas industry.

BURNER TIPS: CUSTOMER SERVICEDo you have a Net Promoter Score prob-lem? You’re not alone. Sparks Research’s Richard Groom discusses how your NPS can affect customer loyalty—and what you can do about it.

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

A D I N D E X

A.Y. McDonald Manufacturing Company Back

Gas Technology Institute 14

GTS Inc. 8

Holland Engineering, Inc. 8

Itron, Inc. 13

LocusView 11

Marsh Bellofram Group of Companies Inside Front

Pipetel Technologies Inc. 3

S&N Communications, Inc. 10

Sensus USA Inc. 21

Utility Pipeline LTD 17

only see what’s applicable for them, like a negotiated HSA contribution, instead of a free day of PTO that may be suitable for other members of the workforce. Overall, this gives every employee a more per-sonalized experience that will drive more engagement and lead to improvements in overall employee health and well-being.

The word “wellness” is tossed around quite often these days, used to label ev-erything from workouts to diet products. But real wellness—wellness you provide through a defined program—can have a major impact on your workforce and your company’s future. u

Henry Albrecht is the CEO of Limeade, a corporate wellness technology company that supports employee health, well-being and performance.

Williams employees exercise in the energy company’s fitness facility at its Oklahoma City office.

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The Mascoutah Little Indians junior football program in Illinois kicked off on its own playing field this football season, thanks to a little love and a lot of hard work from Ameren Illinois and one of its employees.

With the help of a $600 Ameren grant, an Ameren Illinois truck, pipe stands, welding equipment and a handful of volunteers, Tilden gas storage journeyman

Brian Rumler built the goalposts for the field from scratch. He and his volunteers spent more than 30 hours on the construction of the goalposts, which are dual-purpose for soccer. He says having the crane on the Ameren Illinois truck was a huge timesaver.

Even though it was a long holiday weekend of hard work, Rum-ler can’t wait to watch his nine-year-old son play on the field this season and for years to come. “My son will get to play on that field until he goes to high school. Those field goals are built with quality and will probably be there longer than I am around,” Rumler said. “I know the entire organization is grateful. Honestly, without the approval to use the equipment I was able to use from Ameren Illinois, I don’t think the goalposts would have ever been built.” u

Are your employees or company making a difference in your community? Contact Tracy Burleson at [email protected] to submit your ideas.

TOUCHDOWN

M A K I N G A D I F F E R E N C E

Brian Rumler, with his nine-year-old son, proudly stands in front of the goalposts he built for the Mascoutah Little Indians

football program. Inset: Rumler works on one of the two posts.

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Technical Papers • Industry Exhibits • Innovations • Networking Events • Technical Papers • Industry Exhibits • Innovations • Networking Events

Wednesday, March 23 Morning Track Sessions 8:00 – 10:05 AM

• Extraction of 1950’s Petroleum Lines – EPA Mandate • 36-in. HDD Gas Pipeline Crossing of Highway 880 in

Fremont, California • Preemptive Actions Lead to the Successful Horizontal

Directional Drill Crossing of a Congested Corridor• The Use of Flexible Steel Pipe to Rehabilitate Aging

Pipelines • Trenchless Construction Risk Mitigation Using

Subsurface Utility Engineering

Exhibit Hall 10:00 AM – 12:30 PM• Visit over 150 companies within the trenchless

industry Networking Luncheon 12:30-2:00 PM

• Network with trenchless experts in a casual setting

Gas Good Practice Course 2:30 – 6:30 PM

• A four-hour course focusing on good practices for Horizontal Directional Drilling (HDD), Cured-In-Place-Pipe (CIPP) and Pipe Bursting

NASTT’s No-Dig Show offers a first-rate educational program that rivals no other!

nodigshow.com

Wednesday, March 23, 2016Gaylord Texan Convention Center | Dallas, Texas

NASTT’S 2016

No-Dig Show

Picture curtesy of Public Service Electric & Gas (PSE&G), Newark, NJ

NASTT’s No-Dig Show will feature a full day of education and networking specifically for the gas industry. CEUs/PDHs will be available for the Track Sessions in the morning and the Good Practice Course in the afternoon.

Gas Industry Day

NASTT’s No-Dig Show will feature a full day of education and networking specifically for the gas industry. CEUs/PHDs will be available for the Track Sessions in the morning and the Good Practice Course in the afternoon.

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