Comprehensive Study Shows Decreasing Emissions from Local Natural Gas Distribution Systems

Washington, D.C. – A study published today in Environmental Science & Technology led by a team from Washington State University (WSU) found that emissions from local natural gas distribution systems in cities and towns throughout the U.S. have decreased in the past 20 years, to levels 36 to 70 percent lower than current estimates. This reduction reflects significant upgrades at metering and regulating stations, improvements in leak detection and maintenance activities and replacement of older pipeline materials.

“A concerted effort by natural gas utilities to upgrade our nation’s pipeline network in order to enhance safety has contributed significantly to a declining trend in emissions from the natural gas distribution system,” said AGA President and CEO Dave McCurdy. “Natural gas utilities are leading a fact-based dialogue about our nation’s energy future. Better data informs that conversation and help us to continually improve the delivery of natural gas to homes and businesses safely and reliably.”

Led by Regents Professor Brian Lamb in WSU’s Laboratory for Atmospheric Research with assistance from Conestoga-Rovers and Associates, an engineering and environmental consulting firm, the study provides the most comprehensive set yet of direct measurements of emissions from the distribution system. They estimate that emissions from the distribution system range from approximately 393 to 854 gigagrams per year, which is between 0.1 and 0.2 percent of the natural gas delivered nationwide.

The U.S. Environmental Protection Agency’s annual Inventory of U.S. Greenhouse Gas Emissions and Sinks currently uses data collected in the 1990s in a study sponsored by the Gas Research Institute and the EPA. The WSU researchers found dramatically lower emissions, particularly, at metering and regulating (M&R) stations. In fact, because of the significant differences they saw from data from the early 1990s, the researchers revisited nine sites from the previous study and found an average of one-twelfth fewer emissions than 20 years ago from those M&R stations. The researchers also measured reductions in emissions from individual pipeline leaks as compared to earlier studies.

“Because of its abundance and inherent efficiency, natural gas is a foundation fuel for our nation’s clean and secure energy future. Safety is our top priority and as we strive to make our systems safer by upgrading and modernizing our infrastructure we are also making them cleaner,” said McCurdy.

Results from the study by WSU suggest that the number of pipeline leaks have decreased 25 percent for mains and 16 percent for services due to the use of better pipe materials, efforts to seal cast iron joints, and enhanced leak detection and repair procedures.

Since 1990, natural gas utilities have installed modern plastic pipes at a rate of 30,000 miles per year and installed cathodically protected coated steel mains at 1,500 miles per year, both connecting new customers and upgrading existing pipeline infrastructure. They have also added nearly 600,000 miles of distribution mains and service lines to serve 17.5 million additional customers. Pipes that may no longer be fit for service are being replaced with ones made from more modern materials.

Decisions to replace pipe are rooted in enhanced risk-based integrity management programs. America’s natural gas utilities work with their state regulators, legislators and other key stakeholders to advance important safety policies that both enhance system integrity and support increased access to natural gas service for homes and businesses.

AGA and many of its member companies were involved in the development of, and have been partners in the EPA’s Natural Gas STAR program since its inception in 1993, and the industry is working with EPA to develop a new voluntary Gold STAR certification for the natural gas distribution sector. In May 2014, the AGA Board of Directors also approved a set of voluntary guidelines for the purpose of further emissions reductions.

Dr. Lamb’s project is part of a group of ongoing studies that are looking at the entire natural gas supply chain, from the production wells to the transmission pipeline system to local distribution systems. The study was done in coordination with major natural gas utilities and the Environmental Defense Fund.

As part of the study, the research team carefully measured numerous sites selected from lists of known leaks provided by the twelve participating utilities in various regions around the country that met specific criteria to ensure a comprehensive and representative dataset. The researchers took direct emissions measurements of 230 randomly selected, representative leaks from underground pipelines as well as at 229 metering and regulating stations where natural gas is measured and regulated from higher pressure pipelines to lower pressure distribution pipelines.

The group also used different methods than in the previous study, which Lamb believes results in a more accurate assessment of the actual emissions. The researchers made twice as many measurements as in the previous study and carefully checked their results with back-up methods.

Understanding Your Natural Gas Bill

We’ve all been there, opening the mailbox (be it physical or online) to see that monthly utility bill waiting to be opened. While the general notion of what makes up a natural gas bill is pretty intuitive (use more gas, pay more money), things are a bit more complicated than that. Here’s a quick video by the American Gas Association that breaks it all down:


There are three components driving a residential customer’s bill: the cost of the natural gas consumed, the utility’s system charge and additional taxes and fees.

The cost of the natural gas you consume is passed through to you with little or no markup by your gas utility . A mechanism called a Purchased Gas Adjustment (PGA) requires natural gas utilities to periodically adjust their prices to reflect their actual acquisition costs during that period. Those adjustments occur annually in Idaho, Oregon and Washington; quarterly in British Columbia. The Washington Utilities and Transportation Commission has a good explanation (click here to read it) of what the PGA process entails:

Companies buy gas from producers in Canada and the United States, and the price fluctuates over time. The PGA allows gas companies to periodically adjust their prices to reflect the increasing or decreasing cost of gas. Gas companies must file PGAs at least every 15 months, or within 13 months of the effective date of their last PGA they must file documents to show that a rate change is not necessary at that time (Washington Administrative Code 480-90-233). The total cost of gas is passed through to customers. This means that the company does not earn a return on or lose any money on the cost of prudently incurred gas costs.

Customers have enjoyed rate reductions and even credits to their bill via the PGA process thanks to the historic reduction in natural gas prices since 2009. A 2014 joint study by the American Gas Association and IHS CERA calculated an increase of $2,000 in disposable per-household income thanks to natural gas price reductions. A large portion of that extra cash was passed on directly to residential natural gas customers via lower utility bills.

The other component of your natural gas bill is the amount your utility charges to operate and maintain their delivery system, plus a fair return as determined by their regulators. Here’s an explainer by the Oregon Public Utility Commission that details what goes into your utility charge.

Taxes may vary from state to state, or even city-to-city, so lets not get into them here. However, the nature of those charges will likely be called out directly on your bill.

On The Burner Mailing Lists For Review

We’ve distributed two editions of our “On The Burner” email newsletter to our NWGA members-only email list. Each edition provides an industry-focused perspective on some of the key developments we’ve been tracking over the past month, in large part by repackaging the most relevant items from the weekly “Pilot Light” emails you receive as board members.

Please review the list of current recipients of “On The Burner” at your company and let Ben know of any omissions. Alternatively, any member employees that would like to receive “On The Burner” in the future can always subscribe by letting an NWGA staff member know or by emailing info@nwga.org.

Note: Past merges of our database have led to a few typos and misnamed individuals, please give us a heads up if you spot any.

PSE Joins Northwest Natural Gas Market Transformation Effort

BELLEVUE, Wash. – Puget Sound Energy has joined several other regional utilities that provide natural gas service to hundreds of thousands of customers to develop a 5-year regional natural gas market transformation initiative.

The focus of this Collaborative effort is to advance the development and market adoption of energy efficient natural gas products, practices and services in future years, and to help customers save on energy costs.

The initiative, which is the first regional collaborative in the nation and begins this year, will be coordinated by the Northwest Energy Efficiency Alliance (NEEA). This initiative is funded by utilities that provide natural gas in Washington and Oregon, including PSE, Avista Utilities, Cascade Natural Gas, Energy Trust of Oregon, and Northwest Natural Gas.

“For more than 30 years, PSE’s Energy Efficiency department has been at the forefront in reducing PSE customers’ energy costs,” said Bob Stolarski, director of Customer Energy Management for PSE and NEEA Board member. “We’re excited to participate in the NEEA natural gas collaborative and broaden the scope for natural gas energy efficiency together as a region. We expect that the success of the initiative will have meaningful benefits for our customers.”

The Collaborative’s business plan focuses on five key programs that are anticipated to yield cost effective savings:

  • Gas-fired heat pump water heaters: A pilot program is already testing these units. A number of sites — including one located in PSE’s service territory — have been chosen to test how the product works in real-life situations.
  • More efficient fireplaces
  • Commercial rooftop HVAC (Heating, Ventilation and Air Conditioning) units
  • Combined space and water heat gas systems
  • Gas clothes dryers

 

The overall portfolio of measures will result in some savings during the first five years. As these products are adopted by the marketplace, the savings are expected to ramp up, increasing their cost effectiveness from year to year.

NEEA is an alliance of more than 140 utilities and energy efficiency organizations working on behalf of more than 13 million energy consumers. NEEA is the only organization in the U.S. dedicated to accelerating both gas and electric energy efficiency.