Title: Natural Gas: Americas Responsible Energy Choice
1Natural Gas Americas Responsible Energy Choice
- Christopher McGill
- Managing Director, Policy Analysis
- American Gas Association
- Boston Financial Community
- March 12, 2009
- Boston, Massachusetts
2Natural Gas Supply(January 1-December 31, 2008)
Sep
Mar
Source Bentek Energy LLC, Energy Market
Fundamentals, December 31, 2008.
3 Net Storage Activity(January 1-December 31,
2008)
Net Withdrawals
Net Withdrawals
Net Injections
Source Bentek Energy LLC, Energy Market
Fundamentals, December 31, 2008.
4Natural Gas Consumption (January 1-December 31,
2008)
Source Bentek Energy LLC, Energy Market
Fundamentals, December 31, 2008.
5Power Generation Consumption(January 1-December
31, 2008)
Source Bentek Energy LLC, Energy Market
Fundamentals, December 31, 2008.
6Future Natural Gas Supply(2010-2030)
Source Energy Information Administration,
Annual Energy Outlook 2009-2030.
7Future Natural Gas Demand(Typical 2005 Outlook)
Source Energy and Environmental Analysis.
8Future Natural Gas Demand(2010-2030)
Source Energy Information Administration, Annual
Energy Outlook 2009-2030.
9Global Climate Change
Percent of Public Saying Global Climate Change is
a
"Very Serious" Problem
80
x
Germany
France
70
U.K.
60
Canada
U.S.
50
40
Percent Response
30
20
10
0
1998
2000
2003
2005
Source GlobeScan, Presentation to G85
Legislators Forum, 6 December 2005.
10Natural Gas Is By Far The CleanestOf All Fossil
Fuels
Pounds of CO2 Per MMBtu
Source U.S. Energy Information Administration.
11Residential Natural Gas Customers Are
Growing,But Their Greenhouse Gas Emissions Have
Declined
MILLIONS OF CUSTOMERS
GREENHOUSE GAS EMISSIONS
MILLIONS OF TONS/YR.
Source U.S. Environmental Protection Agency,
U.S. Energy Information Administration
and American Gas Association.
12Consumption Per ResidentialNatural Gas Customer
32 EfficiencyImprovement
MMBtu/Year
Source U.S. Energy Information Administration
and American Gas Association. NOTE Data is
weather normalized or adjusted to reduce the
impact of abnormally warm or cold weather.
13NATURAL GAS AMERICAS RESPONSIBLE ENERGY CHOICE
14Total Energy Efficiency(Source Energy Required
To Deliver 100 Mmbtu To End-use Customer)
Million Btu
NOTE National average electricity generation
mix.
15Direct Natural Gas Use ReducesGreenhouse Gas
Emissions
Tons of CO2 /Year
16American Gas Foundation StudyDirect Use of
Natural Gas
- A 7 shift of the total electric load to natural
gas for residential and commercial applications,
can save from 1.25-2.00 quadrillion Btu in 2030. - Potential avoided generation capacity will range
from 63 to 80 GW. - The avoided investment costs will range from 49
billion to 122 billion. - In the studys scenario where CO2 restrictions
meet levels in the Lieberman-Warner Senate bill,
the cost savings is significant - from 18 to
almost 29 billion dollars by the year 2030.
17Number Of Natural GasCustomers Increasing
MILLIONS OF CUSTOMERS
18States With Non-Volumetric Natural Gas Rate
Designs (As Of December 2008)
19APPROVED 28 Companies, 16 States, 20 Million
Res. Customers
Decoupling Tariffs (As Of January 2009)
- AR Arkansas Oklahoma
- AR Arkansas Western
- AR CenterPoint Energy
- CA Pacific Gas and Electric
- CA - San Diego Gas and Elec.
- CA Southern California Gas
- CA Southwest Gas
- CO PSC of Colorado
- IL Integrys - Peoples Gas
- IL Integrys - North Shore Gas
- IN Citizens Gas Coke
- IN Vectren Indiana Gas
- IN Vectren Southern Indiana Gas
- MA Generic Proceeding
- MD Baltimore Gas and Elec.
-
- MD Washington Gas
- NJ NJ Natural Gas
- NJ South Jersey Gas
- NV Generic Proceeding
- NY Consolidated Edison
- NY National Fuel Gas Dist.
- NC - Piedmont Natural Gas
- NC PS Co. of North Carolina
- OH Vectren Ohio
- OR Cascade Natural Gas
- OR NW Natural Gas
- UT Questar Gas
- VA Virginia Natural
- WA Avista
- WA Cascade Natural Gas
-
PENDING 11 Companies, 5 Additional States, 6
Million Res. Customers
- MN - CenterPoint Minnesota Gas
- NY Central Hudson Gas Electric
- NY National Grid Niagara Mohawk
- WA NW Natural Gas
- WI - Integrys - Wisconsin Public Service Co.
-
- CT Connecticut Natural Gas
- CT Southern Connecticut Gas
- IA Black Hills Iowa Gas Utility
- IL Nicor
- MA New England Gas
- MI Consumers Energy
-
Of 65 Million US Residential Customers (2007)
20Natural Gas UtilitiesAn Attractive Investment
21Utilities Dividends
- Most utilities have paid dividends continuously
for more than 50 years - 4.33 average current yield
- 15 maximum dividend tax rate
22Defend My DividendNational Grassroots Advocacy
Campaign
23Average Utility Credit RatingsExceed Corporate
Ratings
Source Standard Poors
24Growth Of AGA Index (Vs. Dow Jones Industrials
SP 500)
-16
-40.00
25Natural Gas UtilityInfrastructure Growth
Projections
- To meet projected natural gas demand, 100
billion worth of new - infrastructure must be built over the next
20 years.
26Our Industrys Future Looks Bright
Increased direct use of natural gas can reduce
energy consumption and costs, lower carbon
emissions and enhance national energy security
Abundant domestic supply resource base can serve
future demand growth
Gas utility industry provides safe and reliable
energy services through asset based businesses
Natural gas utilities have solid fundamentals and
good business practices
25
27Keys to Future Success
Grow direct use of natural gas through new
products and services and technological innovation
Access new domestic supply sources and develop
transportation and storage infrastructure
Raise cost effective capital to expand our
natural gas delivery infrastructure
Adopt innovative regulatory tariffs that align
the interests of energy utilities with consumers
26
28Natural Gas Americas Responsible Energy Choice
- Boston Financial Community
- March 12, 2009
- Boston, Massachusetts