American Gas - February 2014 - (Page 28)

profile tory tenure, so this topic is near and dear to my heart. I firmly believe gas is a critical fuel. It is cleaner and more efficient than other fossil fuels, and we appear to have an abundant domestic supply. We are blessed with this resource, and I am confident we will produce it safely, in an environmentally responsible way, and use it wisely for the benefit of all Americans. Certainly the surge in shale-gas development has been a game changer. Not too long ago experts predicted dire forecasts for gas supply and prices. Now we may have more gas than the U.S. needs. Such a tremendous turnaround in such a short period of time is fortunate because our energy and electricity infrastructure is undergoing profound change. Natural gas is well-suited to be a major player in the electricity generation sector. But we must also ensure that our energy supply remains diverse because diversity is indeed the strength of the U.S. energy sector. We must be careful to use gas in such a way that provides benefits both now and in the future. AGA: Local distribution companies face both opportunities and challenges in helping their communities take advantage of newly abundant supplies of natural gas. Regions and states are tackling this issue in a variety of ways, but since much of the prevailing natural gas regulation was developed in a time of perceived scarcity, do you think certain national regulations or policies should be reviewed to identify areas that may no longer be appropriate for today's and tomorrow's gas markets? Honorable: Speaking on behalf of NARUC, we've always advocated for a state-driven approach to utility issues. State officials are closer to the consumer, we know our geography better, and we are more accountable for our decisions. That said, consumers are served best when federal and state regulators are working together. We have a strong relationship with the Federal Energy Regulatory Commission and look forward to our continued work with Acting Chair Cheryl LaFleur and her colleagues on these issues. 28 AmericAn GAs february 2014 One vexing concern for all of us is whether we have the infrastructure necessary to handle the expected increase in gas usage. The NARUC Committee on Gas has spearheaded our analysis into this issue. We've held numerous sessions at our meetings with the NARUC committees on Electricity and Energy Resources and the Environment. I applaud all of our committee leadership for focusing on this topic. I am certain we will be addressing this issue many times in the years to come. AGA: How would you like to see commissioners and utilities work collaboratively to address key energy issues? Do you believe there are specific opportunities upon which to capitalize? What role would you like to see AGA play? Honorable: As someone who has worked closely with AGA members and staff over the last several years, I can say the association is a well-respected and highly valued voice in the NARUC universe. I would only ask that AGA and other utility organizations remain as engaged with us as you already are. The NARUC meetings are a great place for us to discuss concerns and potential solutions in an open and transparent forum. AGA: In your inaugural speech you stated that during your tenure as NARUC president, you will be focusing on pipeline safety. Could you elaborate? As you know, many states are moving forward with approval of pipeline replacement programs. What can be done to identify and document these programs so that as new commissioners are appointed or elected, they have concrete examples of "best practices"? Honorable: Thanks to the efforts of AGA and its members, there are nearly 1.3 million miles of plastic pipe in the natural gas system today, along with more than 1.1 million miles of cathodically protected steel pipeline. There has been a 46 percent decrease in the amount of cast iron main since 1985, and only 3 percent of the entire national gas distribution system is composed of cast iron mains, a figure that is continuously being reduced as pipeline operators implement accelerated pipeline replacement programs, as approved by their respective regulators. And serious incidents involving cast iron mains have also declined, dropping by 86 percent between 1985 and 2012. At NARUC, our work spans several decades. I am proud of the work of our Committee on Gas, Subcommittee on Pipeline Safety, and the Staff Subcommittee on Pipeline Safety, comprised of our National Association of Pipeline Safety Representatives colleagues. I was honored to serve as the first chair of the Pipeline Safety Task Force, formed nearly three years ago, and I look forward to forging ahead for greater future successes. We will ramp up our efforts to make sure commissioners remain focused on this significant responsibility by sharing best practices from state leaders across the country. We will continue our outreach efforts to include federal and state regulators and staff, stakeholders, and members of the public about our shared accountability. As we have in the past, we will reach out to members of the industry who stand on the front lines of ensuring safety. We also look forward to strengthening our partnership and continuing our work with the U.S. Department of Transportation and the Pipeline and Hazardous Materials Safety Administration. I've particularly appreciated PHMSA Administrator Cynthia Quarterman's leadership and look forward to our collective work to make continued strides in the area of pipeline safety. Even though we've seen improvements, there is still work to be done. Most unfortunately, we continue to see pipeline incidents, some of which tragically result in loss of life. It is imperative that we continue to stress the importance of "Call Before You Dig" and pipeline repair and

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American Gas - February 2014