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April 7, 2008 Volume 27 Number 7

Inside this Issue 3

Congressman Peterson to Speak at APGA Government Relations/ Public Gas Policy Council Meeting

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The 2008 Marketing Development Conference a Huge Success!

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PHMSA Urges State Utility Commissions To Support June 1 EFV Deadline

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Working Group Reviews Plastic Pipe Failure Data

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Energetic Women – Energizing Response!

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APGA 2008 Annual Conference Update

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Please Welcome Marghet Hager to APGA!

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APGA Needs A Name for Our New Magazine!

FERC Issues Final Rule on Form 2 Revisions On March 20, the Federal Energy Regulatory Commission (FERC) issued a final rule (Docket No: RM07-9-000) that addressed revisions to Form 2 filing requirements by interstate pipelines. Continued on p. 2

APGA Submits Questions to FERC for Technical Conference on Form 552 On March 31, APGA submitted questions to the Federal Energy Regulatory Commission (FERC) for a Technical Conference on Form 552. The Technical Conference has been scheduled for April 22. Form 552 is a new form that came out of FERC Order No. 704. Order No. 704 requires all wholesale sellers and purchasers in excess of 2.2 million Dth per year to identify themselves to the Commission and report summary information about their physical natural gas transactions for the previous calendar year in Form No. 552. Continued on p. 2

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FERC Issues Final Rule on Form 2 Revisions

Continued from p. 1

APGA Public Gas News Publisher: Bert Kalisch Editor: Kristin Gomez Writers: APGA Staff Layout: Marghet Hager For Questions and Comments: Marghet Hager 202.464.0832 Public Gas News is published biweekly by the American Public Gas Association Copyright 2008 American Public Gas Association All rights reserved. This is intended for actual subscriber use only. You may not forward, distribute, copy or republish this newsletter in any manner without the express written consent of the American Public Gas Association.

The Form 2 is a compilation of financial and operational information from major interstate natural gas pipelines subject to the jurisdiction of the FERC. The form contains data for a calendar year. FERC has stated that the revisions to the rule will “enhance the ability of shippers to assess the justness and reasonableness of pipeline rates.” Specifically, the rule will require companies to submit additional revenue information related to the disposition of shippersupplied gas, affiliate transactions, rate treatment for new facilities, discounted and negotiated rate services, deferred income tax and state tax issues and regulatory assets and liabilities. Over the last several years APGA has pushed for an expansion of Form 2 filing requirements so that pipeline customers would be better able to determine, among other things, whether they were being charged just and reasonable transportation rates. The release of this final rule is a victory for APGA. In a statement that accompanied the release of this final rule, FERC Chairman Kelliher stated that “This revised information will help provide the clarity and transparency needed to assist FERC, pipeline cus-

tomers and the public to determine whether pipeline rates are just and reasonable.” Chairman Kelliher also stated that “The final rule strengthens the ability of pipeline customers to challenge pipeline rates.”

“This revised information will help provide the clarity and transparency needed to assist FERC, pipeline customers and the public to determine whether pipeline rates are just and reasonable.” -Chairman Kelliher, FERC A copy of the final rule is available on the APGA website at www.apga.org. If you have any questions on this article, please contact APGA Executive Vice President, Dave Schryver by email at dschryver@apga.org or by phone at 202-464-2742.

APGA Submits Questions to FERC for Technical Conference on Form 552 continued from p.1

On January 25, APGA had filed a request for clarification with FERC regarding Order No. 704. The clarifications sought by APGA were, with one exception technical in nature, going to what appeared to be inadvertent errors in Order No. 704. The one exception was the request that joint action agencies be permitted to file Form 552 on behalf of their members as well as themselves where the members met the threshold test of 2.2 million Dth.

This question is also addressed on the submission to FERC. APGA also raised a question related to how prepays would be calculated. APGA staff will be participating in the April Technical Conference. A copy of the questions APGA submitted to FERC are available on the APGA website at www.apga.org. If you have any questions on this article, please contact Dave Schryver of APGA’s staff by phone at 202-4642742 or by email at dschryver@apga. org.


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PHMSA Amends Its Administrative Procedures On March 28, the Pipeline and Hazardous Materials Safety Administration (PHMSA) issued an interim final rule establishing the procedures PHMSA will follow in issuing safety orders and handling requests for special permits, including emergency special permits. This interim final rule also notifies operators about electronic docket information availability; updates addresses, telephone numbers, and routing symbols; and clarifies the time period for processing

requests for written interpretations of the regulations. This interim final rule does not impose any new operating, maintenance, or other substantive requirements on pipeline owners or operators. The rule was necessary to conform PHMSA's administrative procedures with the Pipeline Inspection, Protection, Enforcement, and Safety Act of 2006 (PIPES Act). A copy of the rule can be downloaded from www.apga.org. This interim final rule is effective

until April 28. Comments are due by April 28, 2008. For more information contact John Erickson, APGA Vice President, Operations 202-464-0834 or jerickson@ apga.org.

Congressman Peterson to Speak at APGA Government Relations/Public Gas Policy Council Meeting On May 8, Congressman John Peterson (R-PA) will receive a legislative award at the APGA Government Relations Conference. As done last year, this year’s Government Relations Conference will be held in conjunction with the APGA Public Gas Policy Council meeting. The APGA Public Gas Policy Council is made up of elected and appointed officials from public gas communities. At the APGA Board of Directors meeting in February, the Board unanimously voted to provide Congressman Peterson with an APGA Legislative Award in recognition of his efforts towards the passage of legislation that would allow for increased offshore access to domestic natural gas reserves. Congressman Peterson has been tireless in his efforts to push for increased domestic supply and APGA has worked with him on those efforts. APGA has long-maintained that increasing supply is a fundamental component of the solution to obtaining long-term affordable natural gas. In addition to receiving the award, Congressman will update participants on efforts to increase natural gas supply. These efforts are particularly critical in light of the potential increase in natural gas demand that is anticipated to occur as a result of the passage of climate change

Congressman Peterson (R-PA) addressing the 2006 Public Gas Policy Council Breakfast

legislation. Information on the Government Relations Conference and Public Gas Policy Council meeting is available on the website at www.apga.org. If you have any questions on this article, please contact Dave Schryver

of APGA’s staff by email at dschryver@apga.org or by phone at 202-464-2742.


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The 2008 Marketing Development Conference a Huge Success! The March 26 - 28, 2008 Market Development Conference in Chattanooga was a big success. Members participated in interactive roundtable discussions and heard from several dynamic speakers and facilitators. The Conference offered APGA members with a host of great take-home ideas for improving marketing and

customer services programs in addition to unparalleled networking opportunities for mentoring and making new friends. Please take a moment to peruse a few conference pictures and visit www.apga.org to see all the MDC presentations. If you have any questions on this

event or to learn more about upcoming marketing conferences please contact Bob Beauregard at bbeauregard@apga.org or at 202464-2742.

From the left, Tom Stroozas, Consultant, T. Stroozas & Associates, Jimmy Sprouse, York County Natural Gas Authority and Steve Lisk, Piedmont Natural Gas

Brad Pitt and Windell Hawthorne, Riviera Utilities, Foley, Alabama

Donna Peeples and Yvonne Merkel, AGL Resource

From left, Nicole Graham, MGAG, Bob Beauregard, APGA and Monica Marlow, Richmond DPU


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PHMSA Urges State Utility Commissions To Support June 1 EFV Deadline The Pipeline and Hazardous Materials Safety Administration (PHMSA) has written to each state public utility commission urging them to “encourage all gas distribution operators to make plans for installation of excess flow valves (EFVs) on single family homes where the pressure in the system is not less than 10 psig.” This provision originates in the Pipeline Inspection, Protection, Enforcement and Safety Act of 2006 (Public Law 109-468), enacted on December 29, 2006 which states that PHMSA must establish regulations requiring such EFV installations but only on

new and renewed service lines. Last year APGA wrote to PHMSA requesting a clarification whether operators must heed the June 1 deadline even though PHMSA will not have issued regulations by that date. While not clearly addressing the legal issues, PHMSA’s letter uses the word “urge” rather than “require” thus bringing into question whether the June 1 deadline applies to operators. Nevertheless, both PHMSA and APGA encourage operators to begin installing EFVs no later than June 1 on new and replaced services meeting the conditions stipulated above.

“PHMSA’s letter uses the word “urge” rather than “require” thus bringing into question whether the June 1 deadline applies to operators.” A copy of the PHMSA letter can be downloaded at www.apga.org.


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Working Group Reviews Plastic Pipe Failure Data During the week of March 17, the Plastic Pipe Database Committee met in Washington to review data received on failures of plastic pipe and components used in natural gas distribution. Natural gas utilities operate more than 525,000 miles of plastic mains and over 30 million plastic services. To understand the longterm performance of this investment, APGA and AGA developed a program to gather data on the performance of plastic pipe. This voluntary program shares data in a confidential manner with representatives of industry and government. The review committee includes the Pipeline And Hazardous Materials Safety Administration (PHMSA) , National Transportation Safety board (NTSB), National Association of Pipeline Safety Representa-

tives (NAPSR) , AGA, APGA, and the Plastic Pipe Institute (PPI). The ongoing project to collect and share data on plastic pipe failures is increasingly important role for public gas systems as federal pipeline safety efforts turn to distribution integrity management principals. 160 APGA and AGA members representing over 70% of all plastic distribution pipeline mileage are currently participating in the program. With such a large portion of the industry providing data, the program allows problems with certain plastic materials to be identified and operators alerted so that appropriate steps can be taken to maintain the excellent safety record of gas distribution. Problems with several types of pipe and fittings have been identified through this program and,

based on the PPDC effort, PHMSA has issued several advisory bulletins related to plastic materials. The APGA Board strongly supports this effort and encourages all APGA members to participate in this project. APGA strongly urges members who are not currently part of the program to join the Plastic Pipe Data Sharing effort. All participants need to ensure that monthly reports are submitted regardless of whether failures have occurred. For more information on this program contact APGA’s John Erickson jerickson@apga.org or contact Alan Winter (562 570 2040 or alan_winter @long beach.gov or visit www.apga. org.

Energetic Women – Energizing Response!

by Stephanie Menning, CAE, IOM, Midwest ENERGY Association “It was one of those rare moments in life; I was on the receiving end of an idea that could have a significant impact”. You know how it is, you’re there in your own world when someone comes to you and says something brilliant. That’s exactly what happened that day last spring, when Jim Kuchler, an MEA Volunteer in Chicago, pulled me aside during a meeting. “Steph”, he said, “I promote and hire a lot of women in this industry and you folks really have no one to talk to… you should start a group. Call it Energetic Women”. Considering my job is really to listen and respond to member needs, I thought Jim’s suggestion was exactly what I needed to hear. I saw it as a powerful way to improve satisfaction and increase results while having a great time. Energetic Women could give us chance to connect women in the utility world and offer them an avenue for growth, positive influence and leadership. It was easy to see the value for them and their organizations. Inspired, I crafted an outline about what this group could be and

how we could make it happen. After sharing this idea with others in the industry, I was certain this was a worthy pursuit. So here we are, almost a year later, and Energetic Women has been

“I promote and hire a lot of women in this industry and you folks really have no one to talk to… you should start a group. Call it Energetic Women” -Jim Kuchler, MEA Volunteer launched. We have an extremely talented leadership team from utilities across the US, and have defined our mission: To Increase the Pool of Promotable Women in Energy Operations and Engineering. Our initial sur-

vey received an over 20% response rate (unheard of by any stretch). It’s like that old commercial…I told two friends, and they told two friends, and so on and so on. The response has been… energizing! You know how it is. It’s one of those rare moments in life; when you’re on the receiving end of an idea that will have significant impact. I urge you to attend the inaugural Energetic Women’s Conference in Chicago, June 24-26. We have an excellent program planned with leadership, communications, and professional development training, plus plenty of opportunities to connect with each other. This will be our forum to share our struggles and successes, and learn from our peers. We hope you can join us and bring two friends! Yes, Jim I was listening. Any other ideas… For more information, visit www. energeticwomen.org or contact Stephanie Menning at (651) 2899600, ext. 114 or stephm@midwestenergy.org.


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APGA 2008 Annual Conference Update The annual conference program and registration packets will be mailed this week! If you find you are in need of additional packets, please contact Sheila Deringis at sderingis@ apga.org. All conference materials are also available on the APGA website at www.apga.org. We have a great program lined up with fun excursions all in a destination that is awe-inspiring. If you have not made your hotel reservations yet, we encourage you to do so as soon as possible. Please contact the Hyatt Regency at 831-372-1234 or 888-421-1442 and be sure to mention “American Public Gas Association” to get the group rate. We have already sold out the majority of our first block of rooms but have secured a second block. Room rates range from $169 to $229 during our conference dates. If you have any questions, please don’t hesitate to contact Sheila at the email above or 202-352-1193.

Please Welcome Marghet Hager to APGA! APGA is pleased to announce the arrival of our newest staff member, Marghet Hager. Marghet joins APGA as the Communications Manager. Before joining AGPA, Marghet worked as a project manager at Antharia, a web design and development firm in Maryland. There she sharpened her design skills in web content management and graphic design. Initially hired as a design intern, she learned to translate her artistic background into the graphic arts realm and was eventually promoted to a managerial position. At Antharia, Marghet was also responsible for the maintenance of a dozen websites as well as other

marketing and training duties. She is excited to join the APGA staff and help grow our marketing and communication efforts in addition to managing the APGA website, assisting in the production of the APGA Public Gas News, the Weekly Update and the launch of the APGA magazine. She received her Bachelor of Arts degree in History, Religion, and Ancient Studies from St. Olaf College in Northfield, MN in 2005. Marghet currently resides in the Petworth neighborhood in Washington, D.C. Marghet Hager, Communcations Manager, APGA, 2008


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APGA Needs A Name for our New Magazine! APGA will launch its first magazine this August. This inaugural issue will debut at the Annual Conference in Monterey, California and is an opportunity for AGPA to discuss the most pressing and relevant issues facing the natural gas industry. As we move quickly to get this project off the ground we are searching for the perfect title.

So far we have come up with the following:

-American Energy -Public Gas -APGA Access -APGA Source

AMERICAN PUBLIC GAS ASSOCIATION

201 Massachusetts Ave NE Suite C-4 Washington, DC 20002

Phone: 800.927.4204 Fax: 202.464.0246 Web: www.apga.org

If you have any more titles to add to the mix please email Kristin Gomez at kgomez@apga.org by April 12. Once we receive your responses, we will then pick the best titles and have the entire membership vote!

Public Gas News - April 7, 2008  

Public Gas News, Volume 27, Issue 7 April 7, 2008