Aging infrastructure? Where’s it a Aging infrastructure? Where’s it a problem and what’s the fix?problem and what’s the fix?

New England Gas Workers AssociationNew England Gas Workers Association

Mark McDonald President

Problem Here?

10% LEL10% LEL

3 Feet

10/23/2011 6:20 PM

The Problem?The Problem?

• Treatment of “non-hazardous” gas leaks

• A “numbness” of gas leaks

• Drastically reduced staffing levels

• Predicting the unpredictable

• A “blind eye” approach to the solution

Treatment of Treatment of “Non-Hazardous” Leaks“Non-Hazardous” Leaks

• They get worse over time.

• Many leaks left unrepaired for decades!

• Many costs associated with maintaining:– Annual re-checks– Repeat response to odor complaints– Hundreds of millions lost annually across U.S.– Greenhouse gas (GHG) damage to our

environment

GHG Facts

• Methane is 21 times more potent than CO2 Carbon Dioxide • Fugitive methane takes 12 years to dissipate, versus

between 50 and 200 years for CO2.• Methane has increased by 150 percent since the mid-

1700s; while CO2 has risen by "just" 35 percent.• In 2009: Distribution pipeline leaks accounted for over 40

billion cubic feet in the United States!• Annual methane greenhouse gas emissions = 48.25

million passenger vehicles

6

Background: Distribution Sector Methane Emissions (72 Bcf)

Source: EPA. Inventory of U.S. Greenhouse Gas Emissions and Sinks 1990 – 2009. April, 2011. Available on the Web at: www.epa.gov/climatechange/emissions/usinventoryreport.html.

Bcf = billion cubic feet

M&R Stations 18 Bcf

Other Sources

3 Bcf

Protected SteelMains/Services

4 Bcf

PlasticMains/Services

6 Bcf

Cast IronMains8 Bcf

Regulator Stations11 Bcf

Are we getting ““numbnumb” ” to leaks?

22 Gas Leak Calls 8 Gas leak calls

In the 4 years prior the month prior

to the explosion. to the explosion.

7

Staffing LevelsStaffing Levels

• Significant reductions since deregulation (1998

Massachusetts)

• Employees with decades of service:“We do much less preventative work than we used to!”

• Less home/business visits due to: – technology – “un-bundling” services (exiting heating repair)– Sub-contracting work to less experienced workers– Chasing the “worst” leaks! – Less preventative leak repairs (Grade 3’s)

More Customers &

(Source: AGA Gas Facts) 600

Residential Customers Per Em ployee Gas Distribution Companies (1971-2004)

500

400

300

200 100

0 1971 1975 1979 1983 1987 1991 1995 1999 2003

Less Workers

Gas Company Employees U.S. (thousands)

120125130135140145150155160

1998 De-regu

lation1999

20002001

20022003

20042005

20062007

Less leaks repaired…YETThe system is getting worse?

Predicting the unpredictablePredicting the unpredictable

Winter Patrols need to be mandated

“What’s the fix?”

RATES•Redesign rate recovery for “a call to action”

“Low returns create incentives for (LDC’s) to avoid discretionary investment”

•Regulators have the control for change!“Decoupling” “Replacement Recovery” “Efficiency Programs”

Massachusetts ratepayers spent $65 million on gas efficiency but saved less than ½ the amount of gas leaked

out of the pipeline in (2010)!

A “blind eye” approach A “blind eye” approach to the solutionto the solution

“Replacement will solve all our problems”Maybe tomorrow’s solution, not today’s - alone!

•Risks associated with rush to replace? Incorrect installations Collective failure for future generations Locating difficulties More plastic…more 3rd party hits – are we trading off hazards?

It’s too late to make up for lost time on past replacement….

THANK YOU!

New England Gas Workers Association

Mark McDonald

874 South St.

Boston, MA,

mark.mcdonald@negwa.com