Converting to Natural Gas Think About Energy Briefing Becky Eshbach - PowerPoint PPT Presentation

Converting to Natural Gas Think About Energy Briefing Becky Eshbach UGI Utilities, Inc.

What We Will Cover Today  An Introduction to UGI  Why Switch Fuels?  UGI’s Growth Initiatives: Recent History, GET Gas  Fuel Switching Examples

INTRODUCTION TO UGI

UGI Service Territory

UGI Utilities – Key Statistics UGI Is the Largest Gas Utility in Pennsylvania UGI Gas 361,000 UGI Penn Natural Gas 165,000 UGI Central Penn Gas 80,000 Total Gas Customers 606,000 UGI Electric 62,000 • 89% Residential • 11% Industrial/Commercial • Total Annual Gas Sales: ~ 154 BCF (billion cubic feet) • Total Annual Electric Sales: ~ 970 GWH (millions of kilowatt hours) • UGI Utilities Gas Main Infrastructure: ~ 12,000 miles

Why Switch Fuels?

Fuel Switching Economics  Unique Situation  Oil Prices Remaining High  Gas Prices at Historic Lows  Gas is an American/Pennsylvania Fuel  Economics  UGI Calculator – Commercial  www.ugi.com/businesscalculator  Oil Prices seen over the past winter  $3 to $4 per gallon (eq $21 to $29 per Mcf)  Natural Gas Prices (Commodity/Distribution)  $6 to $7 per Mcf

Commercial Calculator

Importance of Utility Contact  Utility Consultation  Infrastructure at Site?  Infrastructure able to Support Load – Pressure/Volume  Upgrade Facilities  Extend Facilities  Applicable Tariff Rate  Provide Cost Analysis Based on Historic Oil Consumption  Work with Consulting Engineers  Permitting Required- Environmental/PADOT  Coordinate Utility Project Requirements with HVAC Contractor

Growth Initiatives

Growth – Creating Benefits  Converted government facilities and schools to clean- burning gas within the last five years  13 government facilities  18 schools  Nine UGI customers installed combined heat and power systems within the last five years  Carbon savings of nearly 72,000 tons of CO2  Since 2008 UGI converted over 31,000 households and 45 large C&I facilities, and invested over $40 million annually to extend service to new customers.  Overall carbon savings equivalent to removing 55,000 cars from the road

Growth – GET Gas  The UGI Growth Extension Tariff(GET) is designed to provide natural gas service to unserved or underserved area.  Available as a 5-year pilot to customers of UGI Utilities  GET Gas customers will pay a monthly surcharge over a 10-year-period to cover the cost of the main extension  Once approved, UGI would designate an additional $15 million each year for five years for this program.

Fuel Switching Examples

GEO Specialty Chemicals  Oil/Propane to Natural Gas Conversion  Initial evaluation over 10 years ago  December 2010 completion  Manufacturer of over 300 specialty chemicals for niche markets  A total of 11,582’ of 8” PE main installed in approximately 4 months  Use of directional boring methods  Private ROWs acquired  Resultant 25% reduction in emissions  Approximately 250 fewer fuel oil trucks and 50 fewer propane trucks traveling on Cedar Crest Boulevard

Bethlehem Area School District  Oil to Natural Gas Conversion  Fall 2011 installation  Spring 2012 conversion  Part of an overall energy plan by D’Huy Engineering  1,000’ main extension  Nitschman Middle School installed gas hot water boilers, burners, and gas domestic water heaters  Eliminated 1036 tons of CO2  Equivalent to 184 cars

~1,000 ‘ of New 2” Nitschmann PE Medium Elementary Pressure Gas School Main Existing Low Pressure Gas Main Existing Medium Pressure Gas Main

Gracedale Nursing Home  Oil to Natural Gas Conversion  Initial contact in Summer of 2010  Fall 2011 installation  Spring 2012 conversion  UGI presented an energy analysis to Borton Lawson, Northampton County’s engineering firm showing substantial savings  Part of an overall energy plan by McClure Company  2,000’ 6” PE main extension

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