Hannah Bozian AGA Analysis of the 2010-2011 Winter Heating Season

Posted on June 29, 2011 by Hannah Bozian | Comments Off


Colder Temperatures Can Affect What You Pay For Natural Gas

As painful as it may seem, it is never too early to be thinking about winter heating…or is it?

On June 29, 2011, AGA released an energy analysis of the 2010-2011 winter heating season. Each year local natural gas utilities develop a plan to reliably meet customer needs during winter heating season peak consumption periods. 

For this year’s survey, questions focused on peak-day and peak-month supply practices, pricing mechanisms, as well as regulatory and market hedging practices. To maximize efficiency, all of the companies surveyed indicated that they use storage services to satisfy demand, especially considering the unexpected weather patterns. Storage services help manage the gas supply and transportation portfolio efficiently, and in a way that reduces costs, which is what everyone wants. 

The report discusses how winter temperatures play a significant role in supply planning as well as consumer bills. During the winter months, natural gas customers consume more gas than usual, so it is necessary to look at the trends that may affect your wallet.

Last year, while October and November were warmer than previously recorded averages, December, January and February were colder than normal.  For the companies surveyed, their peak months for gas usage were almost evenly distributed among these coldest three months (13 companies had their peaks in December, 18 in January, and 15 in February). Gas companies have to determine their supply of gas based on their projected peak consumption levels so they have enough gas for all of the customers, and can deliver it in a timely manner.

If you would like to learn more, please contact Lydia Meigs, lmeigs@aga.org.

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Hannah Bozian FERC Commissioner John Norris Addresses the Natural Gas Roundtable

Posted on June 23, 2011 by Hannah Bozian | Comments Off


On June 22, 2011, the monthly meeting of the Natural Gas Roundtable convened with keynote speaker, Federal Energy Regulatory Commission (FERC) Commissioner John Norris.

Norris voiced his confidence that natural gas will play a large role in the future of America’s energy needs, but also spoke of the difficulties in getting investments for energy infrastructure that are needed for the natural gas industry to grow.

Norris noted that because natural gas is America’s energy future, in terms of infrastructure, “it is important we get it right.”

“Investing in this type of infrastructure is beneficial for the economy,” said Norris, “because a large investment will help America transition its energy usage while creating jobs.  We need to replace much of this infrastructure anyway, because at this point, it qualifies for AARP benefits.”

In his speech, Norris remarked that America’s energy issue is “the biggest big-picture challenge we face as a country right now.”

There’s no doubt that natural gas is imperative to help reduce the country’s greenhouse gas emissions and satisfy other clean energy goals.

“No matter where I look in the energy debate,” Norris said, “it seems like it all comes back around to natural gas.”

We couldn’t agree more.

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Lydia Meigs All Hail: Ford’s New CNG Cabs

Posted on June 22, 2011 by Lydia Meigs | Comments Off


US Cities Begin Using Natural-Gas- Powered Taxis

Cab companies in Southern California have joined the efforts of others around the country to help reduce greenhouse gas emissions by driving compressed natural gas (CNG) powered taxis.  Together the Yellow Cab of Anaheim and the Cabco Yellow Inc. of Orange County ordered 119 CNG-powered Ford Transit Connect Taxis.

Ford Motor Co., whose cars are frequently used as cabs, said that they developed the Transit Connect Taxi because of the interest they saw in their market research in the taxi industry.  Given Ford’s notoriety as cab-makers, their switch to more energy efficient cabs are promising for the taxi and public transportation industry as a whole.

According to Ford, use of the Transit Connect Taxi is growing nationwide.  Just last week, Chicago’s Taxi Medallion Management began using 12 CNG taxis.  Furthermore, taxi companies in Philadelphia, St. Louis, Las Vegas and Connecticut have all ordered CNG taxis and plan to put them in service this summer. 

Passengers will be riding clean!

CNG, according to the Environmental Protection Agency (EPA), is less expensive than gasoline, costing Americans anywhere from $1 to $2 less per gallon (depending on location), and burns cleaner, emitting 30 to 40 percent less in greenhouse gases. 

With increased amounts of tourism in US cities in the summer months, and thus more need for cabs, the switch to CNG taxis will contribute greatly to efforts for energy efficiency. The increasing popularity of Ford’s innovative taxis show a promising future for environmentally friendly public transportation and natural gas powered vehicles. 

AGA believes that natural gas as a transportation fuel is a viable channel for our foundation fuel to expand its use. We are excited about the growing popularity of CNG powered fleet vehicles and hope to see the trend transform itself for the consumer market, as it is another step forward in reducing dependence on foreign oil. Click here to learn more about what AGA is doing in the world of NGVs.

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Bruce Kauffmann A Talk with Transportation Secretary Ray LaHood

Posted on June 20, 2011 by Bruce Kauffmann | Comments Off


The cover story for the June issue of American Gas magazine, titled “Safe & Sound,” is actually an interview with U.S. Department of Transportation Secretary Ray LaHood, among whose many responsibilities is partnering with the natural gas industry to ensure that our natural gas pipeline delivery system, which is the safest energy delivery system in America, becomes even safer.

As far back as February of this year Secretary LaHood had visited AGA’s headquarter in order to talk with our board of directors about how, together, we can improve pipeline safety.  As he said to our board, a first step is to improve communication among all of the pipeline safety stakeholders, which is why in April he hosted the first-ever Pipeline Safety Forum, whose goal was to determine the best methods to “rehabilitate, repair and, where necessary, replace critical pipeline infrastructure”—all to ensure the safe and reliable delivery of natural gas to the 175 million Americans who depend on it every day.

As Secretary LaHood notes in our interview with him, the Pipeline Safety Forum was an excellent first step, but only a first step in enhancing pipeline safety, while also making sure that all stakeholders, including natural gas customers, are aware of the individual actions they can take to improve the safety of the pipeline system.  To give just one example, the number-one cause of pipeline incidents is damage done to pipelines by outside excavators, including folks digging or planting in their own back yards, who are unaware that underground pipe lies beneath them.  A simple call to the “Call Before You Dig” safety hotline—just dial 811 anywhere in the country—and you will be alerted to the location of underground pipe and/or wire in your digging area.

As the interview makes clear, Secretary LaHood is a firm believer in interaction, communication and collaboration. “I know that each time we bring people together we learn more,” he says.

By reading this interview, you too can learn more about Secretary LaHood’s views on pipeline safety and how the U.S. Department of Transportation, the natural gas industry and our many other involved stakeholders, both nationally and in each of our 50 states, can more effectively work together to improve it.

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