American Gas - November 2013 - (Page 18)

fueling the future or underappreciated, discussing specific opportunities across economic sectors for greater direct use of natural gas. The following sections describe the views of AGF on the role of natural gas in our energy future, drawing on information contained in the Fueling the Future study. From AGF's perspective, the study is notable because it focuses on the importance of bringing natural gas that last mile to homes and business throughout the nation; takes a look at opportunities for combined heat and power.; explores the growing market for power generation-and the value that LDCs can bring to this market; considers the increased use of CNG and LNG; and zeroes in on energy-efficiency and some of the incentives, policies, and investments that will continue to fuel these efforts. It's likely that the new study will serve as a resource for gas LDCs, their customers, regulators, legislators, and other policy makers as they adjust to the new realities of the natural gas market. Look for further coverage of the report in future issues of American Gas. -Dr. Kathryn Clay, executive director, American Gas Foundation. Visit agf.org for more information about this study. LDCs: THE LAsT MILE There is a clear opportunity for gas LDCs to increase deliveries to existing customers and expand their systems to serve new customers. However, considerable marketing efforts and changes to regulatory policies and practices in LDC markets may be necessary to achieve this growth potential. To change historical trends and grow markets in residential and commercial sectors overall, natural gas must either increase its share of these markets through conversions from fuel oil or electricity for multifamily households and commercial customers, improvements in the economic competitiveness of natural gas furnaces versus heat pumps, installation of significant numbers of home refueling units for natural gas vehicles; or through transformational breakthroughs in fuel cells or "micro" combined heat and power units. To service these potential markets, additional pipeline capacity will be required. At present, the high upfront costs to LDCs and, in some cases, difficulty in obtaining regulatory approval for expansion, may slow the realization of these 18 AmericAn GAs november 2013 market opportunities. Furthermore, high installation costs can act as a barrier to oil-to-gas conversions and the adoption of direct-use technologies like NGV home refueling and micro CHP. 2010 RESIDENTIAL SECTOR NATURAL GAS CONSUMPTION (TOTAL 14 BCF PER DAY) Laundry 1% Water Heating 26% LDCs can address these market challenges by: * Working with state governments and public utility commissions to change legislative or regulatory policies that discourage servicing of new gas load, especially if that load would improve overall energy efficiency on a holistic, full-fuel cycle basis. * Seeking common ground with PUCs, community leaders, financial institutions, and appliance manufacturers to reduce the impact of high upfront costs to both natural gas LDCs and consumers, which can deter conversions to natural gas, while avoiding adverse effects on existing LDC customers. * Overcoming approaches in many efficiency rulemakings which discourage inter-fuel comparisons, Cooking 4% Space Heating 69% 2010 COMMERCIAL SECTOR NATURAL GAS CONSUMPTION (TOTAL 9 BCF PER DAY) Cooking 7% Space Cooling Other 11% 2% Water Heating 17% Space Heating 63% Source: EIA leading to the promotion of inefficient technologies. Going forward, PUCs can assure a level playing field based on a complete efficiency paradigm for gas and electric appliances. http://www.agf.org

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

American Gas - November 2013
Contents
President’s Message
Subject Index
Head Start: On Energy Education
Digest
Issues
Updates
By the Numbers
Need to Know
Places
The Wheels on the Bus...
California
Michigan
Michigan
New Jersey
Long Island
Fueling the Future
U.S. Secretary of Energy Ernest Moniz
A Tight Ship
Expanding the Reach of the Gas Infrastructure
Company Profiles
Jobs
Marketplace
Headway

American Gas - November 2013