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Aging infrastructure? Where’s it a problem and what’s the fix? New England Gas Workers Association Mark McDonald President
Aging infrastructure? Where’s it a problem and what’s the fix?
New England Gas Workers Association
Mark McDonald President
Problem Here?
10% LEL
3 Feet
10/23/2011 6:20 PM
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 “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
Unprotected SteelMains/Services
16 Bcf
CustomerMeter Leaks
6 Bcf
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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 “numb” to leaks?22 Gas Leak Calls 8 Gas leak callsIn the 4 years prior the month prior to the explosion. to the explosion.
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Staffing 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 Employee 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 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 to 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 McDonald874 South St.Boston, MA,
