ALISO CANYON UPDATE UTILITY COMMUNICATORS INTERNATIONAL SUE - PowerPoint PPT Presentation

June 22, 2016 ALISO CANYON UPDATE UTILITY COMMUNICATORS INTERNATIONAL SUE KRISTJANSSON – DEPUTY PIO CODES & STANDARDS AND ZNE MANAGER 1

Agenda » SoCalGas Overview  Brand Equity » Methane Leak at Aliso Canyon » SoCalGas Response  Community Assistance  Operational  Politics and Policy » Impact on Brand and Reputation » Next Steps » Push to Electrification

SoCalGas Overview Nation’s largest natural gas distribution » utility; fifth largest in the world » In business for more than 145 years » Serves 12 counties and 500+ communities » 21.6 million consumers; 5.9 million meters » 20,000+ square miles of service territory » Gas system operator for SDG&E » Over 3,500 miles of transmission pipeline » Nearly 100,000 miles of distribution pipeline » Four underground storage reservoirs; 135 Bcf 3

150 Years of Brand Equity » JD Power awards  Consistently ranked 1 or 2 in Large Gas Residential West Region  Frequently ranked 1 or 2 in Large Gas Business West Region » Favorability results average 94.1 percent  Q4 2010 – Q4 2015; range from low of 90.8 to high of 96.9 » Anecdotal…. 4

Methane Leak at Aliso Canyon » Gas leak discovered October 23, 2015; preliminary indications are the leak may be from well pipe casing venting into ground near the well » SoCalGas assembled world-class experts to assist with response; seven separate “well control ” attempts performed » Relief well drilling began December 4, 2015; intercepted target well February 11, 2016 and flow of gas was temporarily controlled; DOGGR confirmed well permanently sealed on February 18, 2016 Graphic is for informational purposes only. Scale and technical detail are not precise. 5

Relief well * Graphic is for informational purposes only. Scale and technical detail are not precise. Fluids can be introduced via different methods. 6

Pathways to Permanently Sealing the Well: Control Cement Confirm 7

Community Assistance » Temporary relocation program » Air purification units and weatherization services » Community Resource Center located in Porter Ranch Town Center. » Dedicated website for Aliso updates: www.AlisoUpdates.com. » Weekly customer bulletins by mail and email. » Outbound calls and text notifications for significant events. » Porter Ranch Community Advisory Committee 8

Breadth of the Issue…. » Election Year! » Legislative/Regulatory » Operational » Legal » Media! » Environmental  Context 9

Addressing Environmental Emissions 1.9 MILLION METRIC TONS 10

Value of Natural Gas Storage » Ensures reliable energy supply to millions of customers  Helps manage fluctuations in gas supply & demand  Mitigates risk of gas, electric outages during peak demand  Critical for fueling electric power plants – 17 in SoCal rely on Aliso » Keeps gas affordable » Supports expanded use of renewable energy resources 11

Our Brand Equity Now…. » Favorability » Reputation » Trust – our backbone! » Recall of News 12

Next Steps for Aliso Canyon » Complete of DOGGR Comprehensive Safety Review  Well testing of 114 gas storage wells • Initial diagnostics testing • Enhanced testing • Return to service or temporarily isolated from storage reservoir  When safe to do so, return Aliso Canyon to service » Root Cause Analysis » Reliability » Legislation and regulations  Participate in the process for reasonable, forward-looking laws and regulations  Implement changes required by new laws and regulations » Litigation  # of lawsuits (civil, criminal, residents, government, shareholders)  Judicial process expected to play out in the courts for years 13

Actions Underway to Safely Restore Aliso 14

Conservation Efforts SoCalGas is implementing a Marketing, Education, and Engagement (ME&E) Campaign » In collaboration with CAISO, SCE, LADWP , SCPPA, and other local municipalities, City of Los Angeles, and the Governor ’ s Office » Focus on educating Southern California consumers on the energy linkage between natural gas and electric generation » Promote the need for conservation during the winter and summer to drive participation in utility energy efficiency and demand respond programs. 15

Doing Our Part to Mitigate Outage Risk  Working toward operating Aliso Canyon in late Summer.  Inspecting and testing with DOGGR oversight  Driving efficiencies in our operations.  Promoting Energy Conservation  Through a targeted marketing plan  Education, and outreach campaign  Accelerate participation in EE & DR programs  Working with regulators so non-core customers more closely match their NG deliveries with the amount they plan to consume on a given day 16

5 Commitments Following Aliso Canyon Leak Return Home Safely Expand Community Resources Understand What Caused the Leak Assure Integrity of All Wells Address Environmental Emissions 17

Thank You! » Sue Kristjansson » Codes & Standards and ZNE Manager » SoCalGas » 213-244-5535 » SKristjansson@semprautilities.com 18