American Gas - February 2011 - (Page 18)

reTurN oN iNvesTMeNT To be The besT your dues doll ars at work sound returns AGA members earned a 197:1 return on their dues investment in 2010. DurinG A time when our country’s energy future is very much undetermined and when party politics are limiting tangible progress on an energy policy, it is critical for companies to have an advocate looking out for their interests inside the Beltway. that is why AGA members will be pleased to know that for the year 2010 the quantifiable value they received in return for their dues investment represents a 197-to-1 return on every dues dollar. Members invested $19.64 million in dues, and the association returned more than $3.8 billion in quantifiable dollar value to its members, in addition to the fact that the two-year extension of the lower 15 percent tax on dividends, which Congress passed in late December, helped protect our members from a potentially significant drop in the value of their aggregate stock portfolio. Following are the notable “return on investment” (rOi) achievements from 2010. In the Bank Greenhouse Gas reporting rule for Methane Leaks from Natural Gas systems. In 2010 AGA once again spent significant time and resources minimizing any negative impact environmental regulations would have on our members. For example, the Environmental Protection Agency (EPA) just published a final greenhouse gas reporting 18 february 2011 AmericAn GAs rule on methane leaks that addresses AGA’s main concerns and eliminates provisions that would have cost our members billions of dollars. EPA also issued a rule to raise the threshold for requiring new-source-review permits for sources of greenhouse gas emissions. As AGA requested in 2009, EPA raised the threshold to exclude all residential and commercial customers and virtually all gas utility facilities. As a result of AGA’s efforts, in August EPA also issued a workable final air toxics rule for natural gas engines. The total ROI is an estimated $3 billion. over-the-counter (oTC) Derivatives. The Dodd-Frank Wall Street Reform and Consumer Protection Act was signed into law in July. As part of an energy coalition, AGA secured an exclusion from the requirement to clear transactions on an exchange or clearinghouse for bona fide commercial end users of OTC derivatives who hedge against price volatility. For midsized utilities, this eliminates the requirement to post tens of millions of dollars in additional margin requirements to hedge their portfolio. The ROI for AGA member companies is a projected $500 million. bonus Depreciation. AGA’s advocacy efforts before Congress came to fruition in September when President Obama signed into law the Small Business Jobs and Credit Act, which includes an extension of the 50 percent bonus depreciation deduction for 2010. For natural gas utilities, the net present value of that extension equals $275 million. Measurement standards. More than 75 percent of the meters used in the custody transfer of natural gas in the United States are orifice meters. AGA Report No. 3, Part 1, which was developed through a national consensus LYDIA MEIGS is AGA communications specialist.

Table of Contents for the Digital Edition of American Gas - February 2011

American Gas - February 2011
Contents
Chairman’s Message
Industry News
Safety First
Return on Investment
Be Prepared
Working Smarter
Places to Be
Noteworthies
Advertisers' Index
Jobline
Marketplace
Facts on Gas

American Gas - February 2011