American Gas - May 2013 - (Page 24)

nois communities have approved referendums deals only for customers who sign up for them. authorizing their local government to negotiBut the Pennsylvania Utilities Commission ate a group rate for their electricity supply. All specifically barred “opt-out” municipal electric residents in those communities are automatically aggregation programs in a 2011 ruling, expressenrolled in the program unless they individually ing a “strong preference for individual choice.” choose to select their electric supplier on their —J.P.T. own. Supporters of these “opt-out” programs say they have saved consumers millions on their power bills. Illinois state legislators would have to approve T H E R A I L S municipal natural gas aggregation before it could become a reality there. But one consultant whose firm has worked with 175 Illinois municipalities to set up electric aggregation programs says he Major railroad to test LNG-powered thinks it could happen as soon as next year. locomotives “There’s been a groundswell of support,” Good Energy Managing Partner Charles de Casteja told American Gas. “Our clients are tellFORT WORTH, TEXAS —One of the nation’s ing us that this is what they want.” top rail carriers will test LNG-fueled locomotives In Ohio, a 2001 law made “opt-out” mulater this year. BNSF is working with two leadnicipal natural gas aggregation programs legal. ing locomotive manufacturers—GE and EMD, Today, dozens of communities have them, a unit of Caterpillar—to develop the natural gas including Cincinnati. Mark Bishop, a senior util- engine technology that will be used in the pilot. ity analyst for Energy Alliances, told American BNSF is a subsidiary of Berkshire Hathaway Gas that the more than two dozen communities based in Fort Worth, Texas. in southwestern Ohio his company serves have The idea of using natural gas as fuel in saved money through natural gas aggregation. locomotives is not new. The former Burlington Bishop noted that administering a natural Northern tested natural gas locomotives in gas aggregation program can be more complicated than an electric aggregation program, because the price of natural gas can fluctuate more quickly than electricity. “It’s very important that you have a partner that’s very tuned in to the market,” he said. In New Jersey, several communities are considering holding referendums to form electric aggregation programs, though natural gas aggregation programs are allowed under New Jersey law as well, de Casteja said. Not all states with deregulated energy markets have embraced aggregation, however. In Pennsylvania, municipalities are allowed to form “opt-in” aggregation programs through Opening new frontiers: “The use of LNG as an alternative fuel [for locomotives] is a potential ‘transformawhich they can negotiate group tional change’ for BNSF and the industry,” said BNSF’s CEO. The Little Train That Could 24 AMERICAN GAS MAY 2013

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

American Gas - May 2013
Contents
President’s Message
Subject Index
Sandy Coins Say Thanks
Digest
Issues
Update
Need to Know
By the Numbers
Places
Need to Know
Taking a Bite out of Food Truck Pollution
Canada
Capitol Hill
State House
City Hal
Safety: Getting Employees Invested
The Rails
Profile
AGA Ops Conference Preview
Procurement
Jobs
Buyer’s Guide
Marketplace
Headway

American Gas - May 2013