American Gas - February 2013 - (Page 29)

Jones on shale gas: “Shale gas is a game changer. Lower retail prices for natural gas have effectively functioned as a tax cut for consumers in the last few years.” vulnerabilities—including wireless devices and thumb drives—and outline possible consequences. You must also review your entire organizational structure and reorganize so you align traditional security measures with cyber defenses and establish clear lines of accountability. Ultimately, the additional budgetary costs of countermeasures will become clear, so now is the time to engage with your regulators and learn upfront about these risks and potential costs. AGA: Natural gas is becoming the fuel of choice for electric generation. What do you see as the challenges in bringing the natural gas and electricity markets together to ensure reliability, in a way that fairly allocates the cost and protects the consumer? Jones: We at NARUC have held a longrunning series of discussions on gas and electricity interdependencies. We’ll have another installment at our winter committee meetings this February in Washington. I have also asked our Gas and Electricity committees to develop a sustained coordinating body that follows the many studies and works on this subject now, including the FERC oversight and studies in the interconnection-wide planning efforts in the Eastern Interconnection, and the Western region with the Western Governors Association. There is a lot going on here, and I want our members to stay on top of these issues. The onset of new environmental rules is resulting in many electric utilities switching to natural gas. We know gas is cleaner and more efficient than many other fuels, but it is also susceptible to price swings. Moreover, just because natural gas is cleaner than coal does not mean it is entirely clear of carbon emissions. For us, we are concerned about safety, reliability, and consumer protection. The expansion of natural gas is coming at a time when our overall energy infrastructure is in need of significant investment. There is concern about whether the nation’s pipeline system is ready to handle the increased demand for gas, which will certainly impact the price of gas. This issue isn’t new. In 2004, a New England cold snap that impacted gas-fired generation in the region reminded us just how interrelated these industries have become. NARUC responded with a resolution recommending that state regulators work with other government agencies and the private sector to promote greater crosssector coordination. The Federal Energy Regulatory Commission is holding a series of workshops on this, and our members are paying close attention. The issues can be broken down into various categories of enhanced communication protocols, operational issues, and infrastructure upgrades. As we move toward the longer-term issues of infrastructure upgrades, whether they be new pipeline capacity or new gas storage capacity that is more flexible, we will have to address the issues of increased cost and cost allocation between pipelines, gas LDCs, and electric customers. AGA: You are a former Hill staffer. What did you learn from your days on the Hill, and how might it serve you during your tenure as NARUC president? Jones: Sure, the first thing is to stay young! I was somewhat older when I worked on the Hill, in my early 30s, and thought the place was full of much younger twentysomethings back then. But when I go to the Hill now, I feel much older surrounded by bright, young staffers just out of college or graduate school. Seriously, I would say I learned some valuable lessons working for Sen. Dan Evans for about five years. First, listen well and have an open door. Listening is a skill that has to be nurtured and developed, and it doesn’t happen overnight. Second, it’s important to build coalitions with other groups that have like-minded interests, and sometimes even with those who may be opposed to your viewpoint. Also, learn how to count votes, and never count a vote as certain unless you test it well. Third, recognize that all issues, especially energy policy issues, go in cycles, and they will experience ebbs and tides. Your adversary today may become your ally tomorrow, so treat them with respect and listen well. Finally, remember that especially with energy policy, leadership starts at the top and must be executed by all. Energy issues by definition are difficult, complex, and expensive policies that encompass other silos like the environment, cybersecurity and critical assets, and water use. If we want a comprehensive energy policy, we need highlevel leadership that starts with the president and the leadership of the House and Senate who have a clear vision of the future and a strategy to achieve that. Unfortunately, we haven’t had that for a long time, and I don’t expect we will have it for some time. Also, don’t take yourself too seriously, and try to have fun while doing good things for your state and country. You are never indispensable, and it’s important to nurture good staff who can fill in for you—and eventually replace you. u february 2013 American Gas 29

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

American Gas - February 2013
Table of Contents
President’s Message
Subject Index
Supplanting Coal, Creating Jobs
Digest
Issues
Updates
Need to Know
By the Numbers
People and Places
Fill ‘er Up—in the Driveway
Europe
State House
City Hall
Wall Street
Elm Street
On the Docket
Profile: Philip B. Jones
Law
Jobs
Buyer’s Guide: Meters
Marketplace
Headway

American Gas - February 2013