ALISO CANYON UPDATE UTILITY COMMUNICATORS INTERNATIONAL SUE - - PowerPoint PPT Presentation

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ALISO CANYON UPDATE UTILITY COMMUNICATORS INTERNATIONAL SUE - - PowerPoint PPT Presentation

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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

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ALISO CANYON UPDATE UTILITY COMMUNICATORS INTERNATIONAL SUE KRISTJANSSON – DEPUTY PIO CODES & STANDARDS AND ZNE MANAGER

June 22, 2016

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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

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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

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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….

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Methane Leak at Aliso Canyon

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» 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.

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Relief well

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* Graphic is for informational purposes only. Scale and technical detail are not precise.

Fluids can be introduced via different methods.

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Pathways to Permanently Sealing the Well: Control Cement Confirm

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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

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Breadth of the Issue….

» Election Year! » Legislative/Regulatory » Operational » Legal » Media! » Environmental

  • Context

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Addressing Environmental Emissions

1.9 MILLION METRIC TONS

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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

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Our Brand Equity Now….

» Favorability » Reputation » Trust – our backbone! » Recall of News

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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

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Actions Underway to Safely Restore Aliso

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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.

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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

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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

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Thank You!

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

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