American Gas - June 2011 - (Page 14)

To Be The BeST Great Ideas | solutIons Country Strong Vermont Gas shares its comprehensive effort to expand natural gas service into rural communities. When you’re operating in the second-most rural state in the nation, expanding natural gas service can be a whole different ball game. required strategic planning—and decisions that would have long-term implications. Implementing a New Ratemaking Process Our first step was to develop a regulatory structure that encouraged investment in growth. State regulators recognized the significant economic and environmental benefits of natural gas and worked with Vermont Gas to implement a new ratemaking process. This change allowed for more timely and efficient inclusion of expansion projects in rates. With the new process in place, Vermont Gas embarked on a project that would eventually expand service to three communities in three years. The project required the support and coordinated efforts of state and local governments, community and business leaders, and potential customers. Today, 62 percent of the homes and businesses in the new communities that had once used heating oil and propane are now using natural gas. Research shows that these customers are very pleased they switched, and Vermont Gas is now well-positioned for further growth in the future. Breaking into New Markets Vermont is known for its pastoral setting. The beautiful landscape, however, has a lot to do with the numbers: The Green Mountain State has the smallest population in the United States except for Wyoming. For Vermont Gas, the state’s only natural gas utility, this presents a unique challenge— especially when it comes to expansion. Vermont Gas has consistently achieved high conversion rates along its mains. Coming off its 45th year, the company has seen its customer base grow from an initial 6,000 in 1965 to 45,000 by the end of 2010. Having achieved significant growth in its existing market, the company came to an important crossroad: how to achieve similar growth in new markets? Generating additional customer growth 14 june 2011 AmericAn GAs One of the challenges Vermont Gas faced was that the utility had not expanded into a new community in more than 20 years, so the company needed to develop a detailed, well-thought-out plan about how to do so today. Having achieved significant saturation within its existing markets, the company evaluated expanding service into new markets and found several nearby communities that had sufficient demand, density within village areas and proximity to the existing service area for our business model. Research showed that likely customers had a strong interest in natural gas: A. DONALD GILBERT is president and CEO and TIMOTHY S. LYONS is vice president, sales and marketing of Vermont Gas. Photos Courtesy of Vermont Gas

Table of Contents for the Digital Edition of American Gas - June 2011

American Gas - June 2011
Contents
President’s Message
In the News
To Be the Best
Tech Talk
Ever Vigilant
Listing of Exhibitors in Alphabetical Order
AGA Operations Conference Exhibit Hall Floor Plan
Listing of Exhibitors by Booth Number
In the News
Marketplace
Places to Be
Jobline
Advertisers’ Index
Facts on Gas

American Gas - June 2011