American Gas - November 2012 - (Page 18)

search engine But cash-strapped states whose economies are being transformed by hydraulic fracturing are becoming sorely tempted to hike taxes on oil and gas wells. A dozen states since 2011 have seen proposals to impose a new tax on oil and gas production or to amend existing taxes, according to the National Conference of State Legislatures. For example, the Associated Press reported that Ohio Gov. John Kasich, a Republican, is proposing raising “severance”—taxes on high-volume drillers—to pay for a state income tax cut. The proposal is gathering resistance from formerly depressed areas of the state that resent the idea of sharing the newfound wealth, the AP reported. (http://on.wsj.com/QnakyF) One governor who is not joining the natural gas bandwagon is New York’s Andrew Cuomo. At the end of September the governor delayed approvals to allow hydraulic fracturing in several struggling rural counties. Cuomo ordered a restart of the regulatory process and a new study on potential impacts on public health. Environmentalists applauded the decision, while The Wall Street Journal derided the now-indefinite delay: “Big Apple elites—and apparently Mr. Cuomo—prefer to keep upstate in pastoral poverty for their second homes and antique shops.” (http://on.wsj.com/rukfQ6) When the Journal mentions “Big Apple elites,” no doubt it means folks like actor Alec Baldwin, who debated hydraulic fracturing with New York Times columnist David Brooks on Baldwin’s radio show on Oct. 8. Brooks noted that hydraulic fracturing provides well-paying jobs: “If you are sitting out there in Western Pennsylvania or South Dakota or North Dakota without a job, it kind of matters to you that there is a 50 buck an hour job for you. If you want there to be a working class, this kind of stuff actually kind of matters.” Baldwin’s response: “You go up to the ‘fracking’ zones of New York and all the license plates are from down South. And they’re going to take that job and they’re going to take that money and they’re going to spend it on condoms and cigarettes up there and then they’re going to go home.” The line elicited a laugh from the studio audience, even if it let a bit of Baldwin’s Big Apple elitism slip through. (http://wny.cc/r6O5eO) Winter on Its Way As colder weather approached, the Energy Information Administration predicted a return to normal winter temperatures east of the Rocky Mountains, Bloomberg reported. Because last winter was unusually mild, the EIA expects households will spend 15 percent more for natural gas and 19 percent more for heating oil from Oct. 1 to Mar. 31. “The boom in domestic natural gas production is leading local utilities to seek the lowest winter gas rates in a decade, even as heating oil prices have climbed,” The Boston Globe said. It reported that NSTAR Gas and Heating, a Massachusetts-based investor-owned utility, proposed a supply rate 18 percent lower than last year—the lowest rate in 10 years. Meanwhile, average heating oil prices are up 3 percent. The cost disparity has driven more Massachusetts residents to convert to natural gas: NSTAR recorded 2,020 conversions in 2011, up from 867 in 2010. It expects 3,500 conversions this year. National Grid, which supplies gas to about 3.5 million customers in the mid-Atlantic, told the Globe it expected about 8,000 conversions this year, up from 6,400 in 2011. (http://bo.st/T4OvWY) The declining cost of gas has helped increase customer satisfaction with gas utilities (see Industry News, p. 12). But it also poses a communications conundrum for utilities seeking help from ratepayers to complete much-needed projects. “With Marcellus Shale drilling rigs dotting our region, the price of natural gas has dropped to a 10-year low,” Pittsburgh TV station KDKA’s news program reported. “So many want to know why Columbia Gas is seeking a more than 23 percent rate hike.” The newscast quoted angry local residents (“It’s unconscionable in these times,” said one), before revealing the reason for the hike: $500 million in pipeline replacement. (http://cbsloc.al/rZxsct) baldwin and brooks: Whose job is it, anyway? 18 AmericAn GAs november 2012 bAldwin: feAtureflAsh/shutterstock.com. brooks: AP Photo/nAm Y. huh http://www.wny.cc/R6O5eO http://on.wsj.com/QnAKyF http://on.wsj.com/RukfQ6 http://www.bo.st/T4OvWY http://www.cbsloc.al/RZxSct

Table of Contents for the Digital Edition of American Gas - November 2012

American Gas - November 2012
Table of Contents
President’s Message
Industry News
Ask AGA
Search Engine
In the Know
Part One: Pipelines
Company Profiles
Places to Be
Jobline
Advertisers Index
Noteworthies
Marketplace
Facts on Gas

American Gas - November 2012