Pennsylvania Gas Consumer R&D
Presented by:
Ron Edelstein
Pennsylvania Public Utility Commission
November 2, 2000
Topics
• Why now?
• GTI Strategy
• Gas Consumer Benefits R&D “Mutual Funds”
• Gas Consumer Benefits Summary
• Summary of Results to Date
• State Summary Map
• New Issues
• Discussion
Why now?
• Energy industry restructuring
• Energy price increases
• Increased need for and interest
in end-use equipment efficiency
• Pipeline integrity concerns
• Environmental issues
GTI Strategy
• Work with LDC’s in primary states to help them request
PUC approval for gas consumer benefits R&D cost
recovery
• Obtain commitments from each LDC on specific R&D
options
• Deliver results to our LDC and gas ratepayer
customers
2001 Gas Consumer Benefits R&D
Mutual Funds (with Sample Projects)
• Residential/Commercial (R/C) Codes & Standards
– NAECA furnace rulemaking
– Manufactured housing
• Increased Efficiency R/C Technology
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Modulating, mid-efficiency residential furnace
Residential distributed generation and cogeneration
“Smart” residential appliances
Increased efficiency and productivity C cooking equipment
• R/C Customer Gas Cooling Solutions
– Building cooling, heating, and power
– Product development and field tests of advanced gas cooling
equipment
Mutual Funds - Cont. (with sample projects)
• Distributed Generation Opportunities
– Distributed generation controls
– Assessments of fuel cell and microturbine developments
• Increased-Efficiency Industrial Technology
– Infrared heating
– Oscillating combustion
• Operations Technology Choices
– Excavation/restoration
– Pipe location/leak pinpointing
– No-dig technologies
Mutual Funds - Cont. (with sample projects)
• Emerging Technologies (research and tech development)
– High-pressure liners
– Advanced absorption cooling
• Gas Forecasting & Planning
– Commercial customer load forecasting
• Manufactured Gas Plant Cleanup Research
– Remediation and cleanup techniques
– Bioremediation
Gas Consumer Benefits Summary
First Order Benefits
• Increased-efficiency equipment for all sectors
• Lower consumer first costs and energy bills
• Lower gas transmission and distribution O&M costs
• Lowered environmental cleanup costs
Second Order Benefits
• Increased competitiveness for Pennsylvania’s Industry
• Enhanced environmental quality
• Reduced peak electric demand
Summary of Results to Date
• Eleven state Public Utility Commissions have approved the
recovery of gas consumer interest R&D
– MS, AL, FL, WY, ID, WA: Purchased Gas Adjustment
(PGA)
– KY: “Tariff rider”
– NC: O&M Expense in a deferred account
– NY: “Tariff leaves,” deferred accounting
– UT, IL: Approved in base rates
State Summary Map (as of 10/30/00)
1. Company and Regulatory Approval
2. Company Yes, Reg. Pending
3. Significant Activity, Co. considering filing
4. Medium Probability
5. Low Probability
6. No Significant Activity
Note: Dots are Atmos states
Intrastate Companies
New Issues
• Tie in between pipeline integrity and need for
cofunding for the states to obtain DOE funding
• As a compromise position:
– Purchased gas adjustment as an interim step only, GTI in
base rates after 2004, or
– Include in transportation tariff sheets
• Need for gas consumer interest R&D as energy
prices increase and to address pipeline safety and
environmental concerns
Discussion