American Gas - April 2013 - (Page 8)

issues Saved d ig e s t The Dow chemical co. is investing $4 billion to construct a new “world-scale” plant for the production of ethylene in Freeport, Texas. The move is part of a comprehensive plan to better connect U.s. operations with low-cost feedstocks available from abundant supplies of U.s. shale gas. construction is expected to employ up to 2,000 workers. The facility is slated to begin operations in 2017. Washington state Ferries, the largest ferry system in the U.s., is considering a switch to natural gas vessels. citing potential cost savings and environmental benefits, officials said they have hired an outside firm to assess the safety and operational risks associated with such a move. earlier this year, the staten island Ferry system launched an LnG pilot program with a $2.3 million federal grant that helped pay for the conversion of one ferry to natural gas. colorado’s Oil and Gas conservation commission has approved stricter 500-foot setbacks between new well locations and homes and other occupied buildings. The colorado Oil & Gas Association opposed the regulation, which replaces a 350-foot rule for urban areas and 150-foot rule for rural areas. environment and community groups favored a 1,000-foot setback and said they will push for legislation Continued on page 10 8 AmericAn GAs april 2013 Natural gas efficiency programs are gaining momentum Y ears of investment in natural gas efficiency programs by utilities are beginning to pay off, as customers saved 125 trillion Btu of energy and avoided 6.5 million metric tons of carbon dioxide emissions in 2011. That represents a 55 percent increase in savings over 2010, according to the AGA’s latest Natural Gas Efficiency Programs report, released earlier this year. Many programs launched within the last decade are just gaining momentum, said Mariam Arnaout, AGA policy analysis manager. There’s also increasing consumer interest in reducing energy costs and emissions, leading to an uptake in program participation. The report showed that investment in energy efficiency programs by utilities in the U.S. and Canada increased in 2011 to more than $1.06 billion, compared to $914 million in 2010 and just $632 million in 2008. Arnaout said regulators have progressively allowed utilities to recoup the costs of such programs. Sixty-five utilities in 31 states reported having a mechanism for recovering revenue losses resulting from efficiency programs, according to the survey. They’ve also become more flexible about the types of programs they’ll allow. Oklahoma Natural Gas, for example, won approval for a fuel-switching program through which CNG vehicle buyers can get a $1,000 rebate. It’s funded through a 25-cent-per-gallon surcharge on CNG sold at their fueling stations. Overall, education outreach, such as brochures and bill inserts, was the most common type of efficiency activity, followed by “direct impact” efforts such as equipment replacement and upgrades in existing homes and buildings. Weatherization was especially important in assisting low-income customers. Many respondents emphasized the effectiveness of partnering with trade allies, such as contractors and retailers, and with other utilities to streamline programs and reduce costs. About 84 percent re- ported working with a trade ally in 2011, up from 79 percent in 2010; 57 percent partnered with another utility, up from 48 percent in 2010. For example, Atmos Energy Colorado, SourceGas, and Colorado Natural Gas formed a consortium to build a comprehensive energy efficiency program using the same web page, marketing materials, and third-party administrators. When the survey was conducted in 2012, utilities in the U.S. and Canada were projecting that their spending on energy efficiency programs would rise again that year to $1.5 billion—an increase of 43 percent over 2011. Arnaout believes continuing investment, supportive regulatory treatment, and an improving economy will likely bring even greater energy efficiency gains as consumers feel more confident to invest in energy-saving systems and appliances. “While many of these programs are already very successful, cost-effectiveness is becoming an issue due to new stringent efficiency standards and historically low natural gas prices,” says Arnaout. “If cost-effectiveness tests consider the many benefits of natural gas in direct-use applications, efficiency gains are likely to continue to grow in the foreseeable future.” The report is available at http://bit.ly/ ZlQwLX . —Jennifer Pilla Taylor issues About Those Winter Electric Bills… New England struggles with flaws in its electric market i n New England, higher electricity prices have prompted concerns about the use of natural gas in electricity generation. A New York Times report went so far as to refer to the “natural gas trap,” suggesting that over-reliance on gas for electrical generation, along with a lack of gas infrastructure, was the problem. But such initial reports have opened the door to deeper discussions. In a follow-up blog post, for example, the New York Times writer explained that the issue required more than just demanding additional http://bit.ly/ZIQwLX http://bit.ly/ZIQwLX

Table of Contents for the Digital Edition of American Gas - April 2013

American Gas - April 2013
Contents
President's Message
Subject Index
LNG Sports Car: Racing Toward Acceptance
Digest
Issues
Updates
Need to Know
By the Numbers
People and Places
Water, Water Anywhere
Asia
State House
State House
Elm Street
LNG: Riding the Wave
Beyond the Headlines
Profile
Crisis Management
Jobs
Buyer's Guide: Mapping and GIS
Marketplace
Headway

American Gas - April 2013