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NECPUC Gas panel. Susan Fleck National Grid June 17, 2014. Our US Network. Our Natural Gas Customers. Customers: We serve 3.5 million natural gas customers across three States (MA, NY & RI), in both urban and suburban areas
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NECPUC Gas panel Susan Fleck National Grid June 17, 2014
Our Natural Gas Customers • Customers: • We serve 3.5 million natural gas customers across three States (MA, NY & RI), in both urban and suburban areas • We have added approximately 120,000 customers since 2008 and forecast to add an additional 260,000 customers in the next ten years • Infrastructure: • Over the last five years, we invested a total of $1.2 billion dollars replacing mains and services that are made up of older, leak prone materials • Our spend in this area will increase by 45% to $2.2 billion dollars over the next five years
The Landscape Nationally: • Increasing public climate change interest and passion • Desire for increasing energy efficiency • Abundance of domestic natural gas supplies • Increasing public safety concerns And in the Northeast: • National Grid is the largest natural gas infrastructure company • We have one of the oldest networks in the nation • We have an opportunity to convert customers from oil to gas
Main Inventory US Comparative Summary PHMSA Average LDC National Grid - US 867 Miles 34,821 Miles
Main Inventory RhodeIsland Massachusetts 3,179 Miles 11,021 Miles
MA Unprotected Steel Main Inventory
MA Cast Iron Main Inventory
RI Unprotected Steel Main Inventory
RI Cast Iron Main Inventory
Historical & Future Capital Spend Millions
Challenges • Expansive infrastructure replacement programs like National Grid’s come with many challenges. • Differing and often times conflicting political pressures faced by utility commissioners in rate and safety areas • City and town rules and regulations • Availability of construction materials • Availability of qualified and trained workers • Community/public opinion and disruptions • Customer ability to foot the bill
Next Steps • Working with our suppliers and contractor communities: • Develop new sources. • Working with our cities and towns: • Develop shared understanding and goals. • Working within our states: • Develop shared understanding of state and National Grid strategic priorities, how they connect and diverge. • Develop infrastructure investment strategies and share best practices. • Working with other leading utilities and industry associations to: • Develop / identify / share methodologies and technologies to repair and replace infrastructure. • Develop and deploy new ways to detect and reduce emissions.