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EXPLORING THE NATURAL GAS UTILITY INDUSTRY
Reflections After PGW Internship
Talaial Alina
NATURAL GAS INDUSTRY•Local natural gas utilities – part of a complex energy supply chain•More than 1,200 natural gas utilities in the United States•Operates an extensive system of 2.4 million miles of pipelines for 177 million Americans•Services 72 million homes and businesses•Natural gas makes up 25 percent of the energy consumed in the United States (24.64 trillion cubic feet or Tcf in 2010) (AGA)
UTILITIES AND NATURAL GAS DISTRIBUTION
•Local natural gas utilities represent the final step in the natural gas delivery process.
•Utilities receive their natural gas supply through “utility transfer stations”
•Transfer stations are maintained by the local natural gas utility
•After the natural gas passes through the transfer station, the local gas utility moves the gas through a 2.4 million mile network
•The distribution network includes measurement and pressure regulators - maintained by the local gas utility
UTILITIES AND NATURAL GAS DISTRIBUTION
•Local natural gas utilities do not earn a profit on gas deliveries.
•Instead, utilities earn a profit on the delivery service they provide to customers.
•Included in this cost is maintenance, upgrades of the pipes that deliver natural gas to your home or businesses and other costs
•Utility-funded efficiency programs and income assistance to moderate energy costs
February 8, 1836 - first employees of the newly formed Gas Works lit forty-six lights along Second Street.
Managed by Philadelphia Facilities Management Corporation (PFMC).
Today PGW is the largest municipally owned gas utility in the country. ◦ 6,000 miles of gas pipes that deliver 78 billion cubic
feet of natural gas to 500,000 customers each year.
PHILADELPHIA GAS WORKS (PGW)
PHILADELPHIA GAS WORKS (PGW)
The Company is primarily a natural gas distribution company.
Operating revenues include: sale of natural gas to residential, commercial, and industrial heating and non-heating customers.
The Company also provides natural gas transportation service. Appliance and other revenues - Company’s parts and labor
repair program. Add. revenue generated from collection fees, reconnection
charges, and Liquefied Natural Gas (LNG) sales contracts. Other operating revenues consist of charges on late
accounts.
PHILADELPHIA GAS WORKS (PGW)
Total revenue in FY 2014: $759 million Total operating expenses, including
fuel costs, in FY 2014: $638.3 million Total excess of revenues over
expenses in FY 2014: $49.3 million
REGULATION OF PHILADELPHIA GAS WORKS (PGW)
• Prior to July 1, 2000, the Company was under Philadelphia Gas Commission (PGC).
• Effective July 1, 2000, Pennsylvania Natural Gas Choice and Competition Act made PGW under Pennsylvania Public Utility Commission (PUC).
• The PGC approves Company’s Operating Budget and reviews its Capital Budget. City Council approves PGW Capital Budget.
• The Company, as of September 1, 2003, is operating under its Restructuring Compliance Tariff.
PGW ASSETS
Accounts Receivable – In FY 2014, accounts receivable (net) of $101.5 million, the accumulated provision for uncollectible accounts - resulted from a robust winter heating season.
Capital Improvement Fund, Workers’ Compensation Escrow Fund, and Health Insurance Escrow Fund – The Capital Improvement Fund decreased by $44.1 million in FY 2014 because of fund withdrawals fpr capital expenditures.
Information technology enhancements, and other general improvements were $80.2 million in FY 2014.
PGW LIABILITIES
Long-Term Debt – Long-term debt, including the current portion and unamortized discount and premium, totaled $1,034.0 million in FY 2014.
Short-Term Debt –The letters of credit supporting PGW’s combined commercial paper programs fixed the maximum level of outstanding notes plus interest at $120.0 million in FY 2014
PGW COMMUNICATIONS DEPARTMENT
•During a typical day at work:▫service the various needs of the departments within PGW
▫help departments draft messages
▫externally respond to customer issues
PGW COMMUNICATIONS DEPARTMENT OBJECTIVES
• Ensures departments and customers can maintain their level of satisfaction. strive to provide leadership convey what CEO and others are trying to achieve
create a strong partnership between PGW and the public
PUBLIC AFFAIRSDirector of Public Affairs - Melanie McCottry
Public Affairs Manager - Kelli E Richards◦Manage external affairs for PGWcreate press releasesanswer media questions regarding PGW
INTERNAL COMMUNICATIONS
Manage executive communications with the bulk of employees
Determine public outreach strategies to increase sign-ups for programs like LIHEAP
Maintain newsletters: Blueflame and Good Gas News
INTERN AT COMMUNICATIONS
DEPARTMENT Delivered mail to
employees throughout the main PGW headquarters
Delivered the original graduation photos to employees who had sent them in to be included in the internal Blueflame Graduation Issue.
Framed graduation photos to deliver to employees.
For the Director of Public Affairs, researched the programs Neighborhood Advisory Committees (NACs) offered
For the External Communications Manager, researched PGW’s public websites to develop tweets
For the Internal Communications Manager, researched internal communications strategies, Focused on the Federal Reserve Bank of
Chicago’s successful communication plan
INTERN AT COMMUNICATIONS
DEPARTMENT
ISSUES ENCOUNTERED AS AN INTERN
Internal: Lack of feedback from management on employee
projects Feelings of stagnation among employees
External: Public distrust toward PGW Failure to understand specific needs of diverse
communities in Philadelphia “A Perpetual Foreigner” image
SUGGESTED STRATEGIES FOR
PGW Internal:Encourage sharing, input, and dialogue
(Give feedback and reward open dialogue) among PGW’s diverse workforce
Manager should share, comment, give feedback, and answer
Show and provide value to employeesPersonalize Blueflame and Good Gas News
to include more employee storiesEngage in one to one interviews with
employees. Further fuels a sense of community within PGW
SUGGESTED STRATEGIES FOR PGW
External:› Stronger Social Media Presence (Being
quirky, humorous, in tune with popular culture)
› Sponsor Youth and Housing Programs for NACs to expand name recognition within the community
› Promoting community events that create solidarity within the community and allow PGW’s name to be associated with caring and sympathy
QUESTIONS?