Future of fuel

Future Fuel of

Future of Fuel is a quarterly newsletter produced by the Department of MLGW Energy Resources

Winter 2015

MLGW Welcomes our Newest CNG Customer Waste Pro

The South Center CNG UPGRADE The South Center CNG station will get a tremendous fueling boost with two major station upgrades. MLGW will add a second Aspro IODM 115 compressor and double the station’s CNG storage capacity to 440 GGE. “Adding the compressor alone will make the station run more efficiently, “ says Ray Ward, Gas Systems Engineer and CNG Project Manager. “If one compressor malfunctions for any reason, the other unit will still be able to operate without interruption.”

With close to $500,000 spent on improvements, these upgrades will improve capacity and convenience. This creates faster fueling and less wait time for our customers. Ward said the foundation work on these upgrades has already begun and the work is planned to be completed in the first quarter of 2016. The site plan is above and the shaded areas represent the improvements.

Join us in our excitement and look to our next edition for photos and other developments on this station enhancement. For more information about CNG, please contact Energy Resources at 901-528-4143.

Customer Spotlight: There is more than meets the eye running the South’s Premier Waste Removal Service company.

Everyday thousands of trucks serve hundreds of thousands of customers. And it takes professional, experienced, hard working and dedicated people, working together, to accomplish this task. Every one of Waste Pro’s employees is focused to achieve continuous improvements in customer service. The versatility of the Waste Pro fleet allows them to be able to serve any customer effectively. And every facet of their operation is geared toward providing “whatever it takes” to service their customers’ demands!

Who are some of your customers?

We serve area muncipalities like the cities of Memphis, Arlington, and Southaven, and the Southwind Community. Some of our business customers include: Pizza Hut, Dollar General and Hilton brand hotels.

Why was conversion to CNG important to Waste Pro? Clean fuels are important to our company’s business model. Waste Pro currently has two CNG trucks in the Memphis market and we plan on an additional 50 within the next 3 years. We want to be able to provide a comprehensive range of waste collection systems involving a large variety of vehicles and equipment. Each one is specifically designed to provide individualized service to each business owner, homeowner or to an entire city.

How has your experience been with our CNG Station?

MLGW has been in Memphis longer than we have. Our experience thus far with MLGW has been nothing short of stellar.

The stations are easy to use, convenient for our drivers, and one member of the the CNG marketing team, Allison Fouche’ has been especially helpful!

Middle -West Tennessee Clean Fuels Stakeholder Meeting On Friday, November 13th, Tennessees Cleans Cities held its first ever Middle-West TN coalition meeting to bring together interested entities from Memphis and all over West and Middle Tennessee to get to know one another and begin more activity and partnerships toward achieving petroleum use-reduction goals in Tennessee. Held at MLGW, the meeting was informative and there were several presentations from industry leaders: Michael Taylor, MLGW, CNG/LNG, Ricky Phillips, Clarksville-Montgomery County School System and - Dr. Steven Wayne, U of Memphis, David Griffin, ICOM North America Propane and Carlos McCloud CMAQ Funding. For more information regarding alternative fuels or the Middle- West TN Clean Fuels Coalition, please contact Kristy Keel-Blackmon, Interim Coordinator at 865-974-9665, kristy@etcleanfuels.org or visit www.tncleanfuels.org.

What Are LDCs Doing to Bolster the NGV Market?

By Patrick Barnard Build it and they will come. But for

and state clean

natural gas local distribution companies

safety boards and

(LDCs), it takes a lot more than simply

commissions”

building refueling stations to develop a

and suggested

truly successful natural gas vehicle (NGV)

that they make an

program.

increased effort to

During a panel session titled “Successful LDC Initiatives” at the recent North American NGV Conference & Expo in Denver, attendees learned - likely not to their surprise - that building a solid NGV program involves a good deal of collaboration and relationship building, not to mention modern-day business savvy.

“The LDC not only must engage the NGV market - it must be the centerpiece or the core of the market - the quarterback,” said Ronald Gulmi, managing director for Emerald Alternative Energy Solutions Inc., before introducing the four panelists. He added that NGV fleet

get more of their executives to sit on these boards.

LDCs also have “great relationships with

exclusively on the NGV market. That

the state energy offices and can play

includes “market development - getting

a key role in getting state grants and

out in front of customers and engaging

incentive funding,” he added.

with them directly; account manage-

“If you look at the successful programs over the years - SoCalGas, DTE Energy, KeySpan, Sempra, New Jersey Natural Gas - you know they have an executive champion,” Gulmi said. “So, as an LDC, I would try to enlist the support of your executives.”

Panelist Edwin Harte, clean transpor-

operators trust their natural gas distrib-

tation product manager at Southern

utors as a “reliable source of information”

California Gas Co. (SoCalGas), one of the

on future development for the NGV

country’s largest natural gas distribu-

market - as such, LDCs are in a unique

tors serving 12 counties and 21 million

position to educate and inform their cus-

customers in Southern California, agreed

tomers and, thus, shape the market.

with Gulmi that it is critical for LDCs to

Beyond serving as a source of infor-

have a dedicated NGV program.

mation, the LDC “is the best avenue for

“Whereas many energy companies

education outreach and market devel-

have their employees working on mul-

opment with vehicle outfitters, dealer-

tiple markets, it is critical to have a dedi-

ships, all the different vendors and trade

cated, resourced team that is focused on

allie, station developers, engineers, and

the NGV market,” Harte said. “It cannot

equipment service providers,” Gulmi

fall under the marketing department

said. “So, no matter the business model

or any of the generalized departments,

- whether the LDC is in the business of

because NGV is a distinct market. Getting

building stations or not - they’re in the

that focus is really key. It has to be differ-

business of growing the market.”

entiated from the other markets.”

Gulmi pointed out that most LDCs

Harte said SoCalGas currently has

have “great relationships with their local

about 13 full-time employees focused

ment - the billing and the interconnection work that needs to take place in the back office; and working with the regulators and advocating on behalf of the market - because, very often the NGV customers don’t have much of a voice.”

Harte also emphasized the importance of educating customers. Today’s NGV customers expect their LDCs to be trusted advisors,” he said, echoing Gulmi’s earlier comments. “They expect to get a certain amount of education from the LDCs. As such, LDCs need staff in place who can handle this education role,” Harte said.

Of course, the big, obvious thing LDCs can do to bolster the market is invest in their own fleets and build refueling stations. “We’ve not only established our own utility fleet - over 1,000 of which operate on natural gas - we’ve also opened up a number of filling stations to the general public,” Harte said. “We now have about 14 public-access stations in Southern California - and we’re rolling out a new branding strategy, giving each station its own clear branding.”

One of the keys to driving consumer

So, what are some of the other things

In addition, SoCalGas is partnering

adoption in the NGV market is to build

LDCs are doing - or can do - to bolster

with Ryder System Inc. to offer NGVs to

stations that are similar to gasoline sta-

the NGV market? Harte said there are

fleet owners on a trial basis, Harte said.

tions. That’s why, Harte said, SoCalGas “in-

a lot more opportunities for LDCs to

“They get to try out an NGV, kick the tires

stalled canopies with logos and tried to

educate and inform their customers. For

and drive it,” he explained. “This way, the

mimic a regular gasoline station as best

example, in addition to posting a wealth

drivers can understand that it operates

as we could” at all of its public stations.

of information on its website, SoCalGas

just like a diesel vehicle and that fueling

makes use of social media, including

is very simple.”

“We really thought about it from a consumer’s perspective. In addition to adding canopies to keep customers out of the elements, we also made sure

Twitter and Facebook, to get the word out about its NGV program.

The company also offers a “CNG sta-

SoCalGas has also developed an iPad accounting app for its account reps that helps them accurately price out NGV

that the dispensers have those nice

tion locator” application for smartphones

programs and pitch them while they’re in

sway nozzles installed,” he said. “What’s

to show users public-access stations in

the field.

wonderful about that is that when a

Southern California.

consumer wants to fuel, you have this gasoline-style holster and nozzle that sways nicely, just like a gasoline station dispenser.”

“Landscaping and a lighted sign round

This innovation, however, is not unique to SoCalGas. As Ian Skelton, director of natural gas vehicles for Atlanta Gas Light, an AGL Resources Co., explained, his company also offers an LNG station

out the features that make SoCalGas’

map that it co-developed with the Mu-

CNG stations look and feel just like reg-

nicipal Gas Authority of Georgia.

ular gasoline stations. And being able to

Harte also talked about the impor-

advertise such low prices is a huge plus,”

tance of collecting and disseminating

he said.

customer testimonials. He said that al-

One thing the four panelists all agreed on is that in order to be a successful LDC, one must “walk the walk” - that is to say, the LDC must have its own fleet of NGVs. Chris Lallier, senior sales representative for CenterPoint Energy, which operates in six states, put it in a corporate-responsibility context: “We believe we should do out part to clean the air we breathe by reducing our carbon footprint and leading the way for other fleets to adopt NGVs with confidence.”

Lee McElrath, regional manager of large accounts for PSNC Energy, a SCANA Company, later added, rhetorically, “If we don’t use our own fuel, how can we expect others to adopt it? If we’re not willing to invest that money ourselves, we can’t expect others to do that,” McElrath said.

though it has been rare for utility companies to solicit testimonials from customers in the past, now is a good time to be featuring them, as they provide powerful evidence of the NGV industry’s viability.

In addition, LDCs can develop educational videos that can be featured on YouTube. Harte said SoCalGas has produced six short videos featured on YouTube that cover topics that are of interest to consumers, such as safety, economics and environmental impact.

In addition, SoCalGas is offering workshops on heavy-duty NGVs, where the company brings in fleet owners that have converted to gas. “This can be a powerful lobbying tool,” Harte said, “because when politicians and legislators hear someone talking about the merits of converting, “they really listen.”

Perhaps the most common theme among the four panelists, however, was the need for LDCs to create strong partnerships with state and local energy departments and to build cooperative relationships with other key entities in the space.“We are predominantly focused on identifying and pursuing NGV opportunities within our footprint, including creating key partnerships to develop CNG stations and to create consumer awareness through marketing programs,” Lallier said. “The key to our success is collaboration - because it is through collaboration that we bring successful projects to implementation.”

CenterPoint, for example, is actively involved in the Greater Houston Natural Gas Vehicle Alliance, the Clean Cities initiative, the Texas Railroad Commission and other state agencies. “We also partner to support legislation that creates funding for grants for tax incentives to subsidize fueling conversions and fueling infrastructure,” Lallier added.

All of the guest panelists added that they also, of course, work cooperatively with station developers and customers to ensure NGV projects come to successful fruition.