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
Recommend
More recommend
