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New business opportunities
The year 2007 saw a tipping point for public perception about climate change, making carbon reduction legislation likely in the near future. It also became clear to us that the only short-term practical option for large-scale electric generation is natural gas – so the nation must begin thinking more seriously about its gas supplies.
This recognition reinforced our earlier interest in new business development related to gas transportation and storage. It also encouraged us to build on the expertise acquired from managing and operating our Mist storage field and its connecting pipelines.
In August, we announced the creation of Palomar Gas Transmission LLC, a joint venture formed with TransCanada Corporation. The partnership plans to build a new transmission pipeline connecting TransCanada’s interstate system with NW Natural’s distribution system.
A second Palomar segment could connect to a liquefied natural gas import terminal if one is built on the Columbia River.
In September, we also announced the formation of Gill Ranch Storage, LLC. This NW Natural subsidiary plans to build and operate a 20 billion cubic feet (Bcf) underground gas storage facility near Fresno, California. We are working on this project jointly with Pacific Gas & Electric, which brings experience with storage and pipelines in California as well as with the state’s regulatory environment. |
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Rewarded for responsible actions
In business, as in the natural world, sustainability requires balance. For a utility, that means balancing and aligning the interests of all those who rely on us – customers, employees, shareholders and communities in Oregon and Washington. Without raising rates we found new ways to align the interests of all our constituencies. We streamlined our operations to improve customer service while increasing shareholder value. We kept our commitments to employees. And we strengthened relationships with Northwest communities through our local philanthropic efforts and involvement with civic and national policy issues.
Environmental stewardship
Our Northwest customers are known for their environmental concern and savvy. When surveyed, they said they expected us to play a leading role in fighting climate change. So in 2007, we launched our Smart Energy program and
became the nation’s first stand-alone gas utility to help customers offset carbon dioxide emissions
associated with their natural gas use.
We’re also taking a close look at the effects climate change could have on the gas industry. As chair of the American Gas Association’s Climate Change Task Force, I spoke at numerous public forums to help the gas industry focus on the challenge of climate change, and to articulate the important role natural gas must play in future carbon legislation. And recently, Governor Ted Kulongoski appointed NW Natural’s Gregg Kantor, to be one of 11 members of his new Oregon Global Warming Commission.
While there may be questions about what climate change will mean for the future energy picture, we believe there will be greater demand for natural gas. And to anticipate and respond to the impacts on our business, we will continue to be actively involved in local and national climate change policy discussions.
We will also continue to aggressively support the efficient and direct use of natural gas. Using highly efficient natural gas water heaters, furnaces and other appliances can help cut carbon emissions by thousands of pounds per year. Natural gas will be a critical resource in a carbon-constrained world, and we intend to stay focused on making sure it is used wisely.
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