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SEARUC REGION

SEARUC REGION. COMMISSIONER SUSAN W. RABON NORTH CAROLINA UTILITIES COMMISSION. SEARUC OVERVIEW OF THE REGION. SEARUC is a large, diverse area -- Runs from NC south to FL; Puerto Rico west to AR & TX Electricity is the main home-heating fuel in SEARUC -- 62% average market share

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SEARUC REGION

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  1. SEARUC REGION COMMISSIONER SUSAN W. RABON NORTH CAROLINA UTILITIES COMMISSION

  2. SEARUCOVERVIEW OF THE REGION SEARUC is a large, diverse area -- Runs from NC south to FL; Puerto Rico west to AR & TX Electricity is the main home-heating fuel in SEARUC -- 62% average market share -58% excluding FL & Puerto Rico -- 23% market share in the rest of the US Gas home-heating share fell from 2000 to 2010 Use of gas for electric generation varied by state -- 62% in FL, 2% in KY in 2011 Gas production varied by state -- 6.3 TCF in Texas in 2010, none in 3 states and Puerto Rico

  3. ELECTRIC HOME-HEATING MARKET SHARE2010 U.S. CENSUS

  4. NATURAL GAS HOME-HEATING MARKET SHARE2000 v. 2010 U.S. CENSUS

  5. PERCENTAGE OF ELECTRICITY GENERATED WITH GASSource: U.S. ENERGY INFORMATION ADMINISTRATION – 2011 Data

  6. 2010 PRODUCTION OF NATURAL GAS(Billions of Cubic Feet) Source: U.S. ENERGY INFORMATION ADMINISTRATION

  7. NORTH CAROLINAGAS-ELECTRIC INTERDEPENDABILITY & RELIABILITY Opened a docket in response to the FERC/NERC Southwest Report No NC gas production - no well freeze-off / processing plant issues in-state Limited issues with electric compression -- One LDC electric compressor station serves a power plant -- 16% of Transco’s mainline compression is electric Gas-fired generation capacity is growing from small base NC generators take steps to firm up fuel supply -- NCUC requires some fuel-oil backup at gas-fired generators  -- NC generators are signing up for firm interstate pipeline capacity

  8. NORTH CAROLINAEFFICIENCY EFFORTS NC General Assembly passed a law allowing decoupling - G.S. 62-133.7 “Decouples” margin recovery from average customer usage -- LDC not punished for promoting efficiency & conservation Major LDCs have decoupling mechanisms in rates LDCs have programs to promote efficiency -- weatherization, energy audits -- efficient appliances

  9. NORTH CAROLINAESCALATING CAPITAL EXPENDITURES Major LDC transmission lines needed to serve generating plants New customer additions -- industrial plants are requesting lines -- low gas prices should encourage residential & commercial additions No cast iron or bare steel main left in NC -- a steady, long-term effort Other safety-mandated expenditures (e.g.: remote, automatic valves) -- a bill has been drafted to allow for pass-through of safety CAPEX - has not been introduced - NCUC has allowed special recovery of safety expenses

  10. Support Charts

  11. PERCENTAGE OF ELECTRICITY GENERATED WITH COALSource: U.S. ENERGY INFORMATION ADMINISTRATION

  12. PERCENTAGE OF ELECTRICITY GENERATED WITH NUKESSource: U.S. ENERGY INFORMATION ADMINISTRATION

  13. PERCENTAGE OF ELECTRICITY GENERATED BY FUELSource: U.S. ENERGY INFORMATION ADMINISTRATION

  14. NATURAL GAS HOME-HEATING MARKET SHARE 2000 v. 2010 U.S. CENSUS

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