October 2006
CityGate News
Volume 19 Issue 10
News for and about Members of the Municipal Gas Authority of Georgia
Natural Gas Buses Burn Clean For Georgia Southern
University
by Hubert Clark, Sr. Market Development Representative E. Georgia
Georgia Southern University is
excited about welcoming a fleet of eight
new Compressed Natural Gas (CNG)
buses to their transit system. Many may
ask, “Why is Georgia Southern using
natural gas buses?” Well, the simple
answer is that the new CNG buses are
considered environmentally friendly
because natural gas is a clean burning
fuel. According to Steve Hotchkiss, City
of Statesboro’s Natural Gas
Superintendent, “natural gas combustion
emits fewer pollutants into the atmosphere than other fossil fuels. Generally
speaking, these natural gas powered
buses do not produce the pollution,
smoke, and smog that are emitted by
diesel burning buses. Georgia Southern
wanted buses that would not generate
pollution.”
The CNG buses being used by
Georgia Southern are CTS Front Engine
models that are produced by Champion
Bus Incorporated. To manage their transit service, Georgia Southern contracted
with Cognisa Transportation. Cognisa,
who actually owns these buses, keeps
the buses rolling Monday through
Thursday from 7 a.m. until 9 p.m.,
Friday from 7 a.m. until 5 p.m., and on
Saturdays during Home football games.
With temporary diesel buses currently
on the route, Georgia Southern and
Cognisa are busy replacing the diesel
buses by cycling in the permanent new
CNG buses.
Last year, Georgia Southern
successfully implemented their campus-
What’ss Inside...
KIA Motors Comes to West Point, GA
page 2
wide bus transit system in order to proCNG buses are a wise investment.
mote pedestrian safety and reduce comNatural gas is an American product sold
muter traffic. Although Georgia
by the City in which the buses are
Southern and Cognisa officials planned
used.”
to immediately use a fleet of CNG powMaggie Fitzgerald, City of
ered buses for the system, they were
Statesboro’s Public Information Officer,
faced with a delay and had to use diesel
believes, “Georgia Southern made a
buses as a temporary solution. The delay very smart decision to use the CNG
stemmed from a shortage of the material
buses. We are excited to see our
needed to build the natural gas fuel tanks Statesboro Natural Gas logo on the side
for the buses. Hotchkiss adds, “unfortuof the buses, and know that we are fuelnately, the war in Iraq resulted in a limit- ing these environmentally friendly vehied amount of the material needed for the cles.” So, if you are interested in seeing
fuel tanks, so we had to wait until the
a CNG bus, just visit the Georgia
material was available and then wait for
Southern campus and look for “Powered
the tanks to be produced.” After waiting
by Statesboro Natural Gas” on the side
almost one year, the CNG buses are now of each bus.
making their debut on campus and even
have their own natural gas fueling station.
Located on
Highway 301 South, the
new CNG fueling station
serves as a home for the
buses, and consists of eight
slow fill stations and one
fast fill station. At night,
each bus is plugged into a
slow fill station to refuel for
the next day’s route. The
slow fill station requires
several hours to completely
fill the fuel tank in the
CNG bus. With this in
mind, the fast fill station
was added to fuel the buses Shirley Geter, Accounts Manager for Cognisa
Transportation, stands in front of a new Georgia
during operating hours.
Southern University compressed natural gas bus.
Hotchkiss notes that, “the
APGA Natural Gas Marketing Center
page 3
SRCS Update
Marketer Pricing
First Responder Liaison Materials
Available
page 5
page 3
Prepays Secure Long-term Gas Supply
page 2
October Calendar
page 4
page 5
New Staff & Promotions
page 5
KIA Motors Plant Shows Signs of Progress in
West Point, GA
by Bryan Smith, Senior Business Analyst
On March 13, 2006 in Seoul Korea, Governor Sonny
Perdue and Kia President and CEO E.S. Chung announced that
KIA Motors Corporation would build an automotive assembly
plant in the city of West Point, Georgia, creating more than
2,800 jobs at the plant and making a $1.2 billion economic
investment in the state. The business deal included a commitment from five supplier companies to locate in Georgia, bringing an additional 2,600 jobs for Georgians. The West Point
facility set to be Kia Motors’ first American car-making plant.
The State of Georgia offered Kia an incentive package
worth about $258 million, which includes $76 million in job
tax credits over five years, about $61 million to buy and prepare the project site and about $20 million for a job training
center at the plant. Troup County and West Point also have
granted Kia $130 million in property tax abatements for a period of 15 years. Municipal and other utility providers have
agreed to provide about $21 million in utility and public works
infrastructure improvements (water, sewer, gas, power, etc.). In
total, Kia has been offered a $410 million package. The City
of West Point will be serving the Kia plant with water &
sewer.
Today, the new Kia plant (located just past mile marker 5 on I-85) has visible signs progress as earth movers grade
the site and prepare the ground for concrete foundations and
floors to be poured. The State of Georgia plans to have parts of
the construction pad ready for Kia to begin plant construction
by Jan. 1, 2006. The initial work is being done on what state
economic development officials are calling ‘pad No. 1.’ It will
be about a 40-acre site that will house the Kia paint facility.
While the primary construction & grading has started along
interstate I-85, the state acquired approximately 2,200 acres for
the Korean automaker’s future facility expansion. The $1.2 billion project is expected to be completed by 2009. The 2-million-square-foot facility ultimately will put out 300,000 cars a
year with an average employee salary at the plant being about
$50,000 a year.
Kia Motors, maker of the Optima and Amanti midsize
sedans, the small-size Picanto and the Sorento midsize SUV, is
an affiliate of South Korea’s largest carmaker, Hyundai Motor
Co., which has a factory in Montgomery, Alabama, 120 kilometers (75 miles) away. Kia, which last year exported threefourths of its South Korean production, is pursuing an aggressive overseas expansion. Besides moving into the United
States, it’s building a second plant in China and expects its
first European factory to start up in Slovakia at the end of the
year-end.
Kia site at West Point in the “grading” stage.
MGAG Secures Long-term Gas Supply with Two Prepays
by Chris Howell, Director Finance
In July 2006, the Gas Authority elected to participate
in two long-term gas prepayment transactions to help replace
ten-year prepayments that are expiring over the next year.
The first deal is through the Public Energy Authority
of Kentucky (“PEAK”), who entered into a 10-year prepayment with BP Energy Company. The Gas Authority will
receive approximately 1,650 MMBtu per day over the next ten
years, representing approximately 2% of projected annual
throughput. The transaction is secured by a parent guarantee
by BP Corporation North America Inc.
The second transaction was executed by Tennessee
Energy Acquisition Corporation (“TEAC”). The Gas
Authority will acquire approximately 10,000 MMBtu per day
for 20 years, representing approximately 10% of projected
annual throughput. J. Aron & Company, a subsidiary of
Goldman Sachs, is the supplier in the TEAC transaction. J.
Aron’s delivery commitment is secured by a parent guarantee
by Goldman Sachs.
The Gas Authority’s participation in both transactions
is on a pay-as-you-go basis. The transactions are expected to
help the Gas Authority maintain member rebates at their historical levels. Interestingly, the Gas Authority assisted both
PEAK and TEAC with their initial prepay transactions in
1998, as both organizations were relatively new at that time.
“We’ve come full circle with each of these long-term partners,
and are pleased to be participating with them in these transactions,” noted Arthur Corbin.
2
APGA Natural Gas Marketing Center – More Than Online
Marketing Services
The APGA Marketing and Sales Committee continue
to focus on initiatives that bring value to APGA and its
Members. The APGA M&S Conference, scheduled in 2007 to
be in the Clearwater, Florida area, the APGA Calendar project, APGA MarketMetrics, and Broadband in Gas are just
some of the committee projects and initiatives. A recent project that came out of the 2006 Committee planning meeting
targets the advertising and communication needs of the public
gas system.
We in the natural gas industry have heard on more
than one occasion the success of our brethren in the propane
industry and their national advertising campaign. And let’s
give the propane industry credit; the ad campaign is effectively communicating the benefits of propane gas to residential
consumers. The reality is the success of the campaign has
been dependent upon collaboration – the sum of many being
able to do much more than each individual. Whether the collaboration comes through associations, joint funding (mandated or voluntary), consortiums, on and on, the main thing is
collaboration and agreement to work together for a common
purpose.
The APGA Natural Gas Marketing Center is an
opportunity for APGA Members who desire to collaborate
with other APGA Members for the purpose of more effectively promoting natural gas. That’s the bigger picture of this initiative - public gas systems working together to develop better
campaigns, to speak clearly in promoting the benefits of natural gas, to communicate with one voice to our consumers.
These are the ultimate benefits.
The APGA Natural Gas Marketing Center also serves
the local public gas system in many ways. The center is a
one-stop resource designed to meet the marketing, advertising, and communication needs of the public gas system.
Through the center, a public gas system will possess the ability to design and customize its advertising and communication
pieces online instantly, saving valuable time and money. Some
of the direct benefits for the local public gas system include:
A. The ability to create a successful advertising or communication piece, customized for the public gas system, within 30
minutes and at a fraction of the usual cost
B. Quickly transfer existing advertising campaigns into a
manageable system
C. The ability to deliver electronically an ad, brochure, or
direct mail piece to the local newspaper or local print shop
instantly
D. Better management of advertising and communication
expenditures, operating budget, and the capability to create
professional reports for staff and management
This initiative has the potential to greatly enhance public gas
system marketing, advertising, and communication efforts.
However, as mentioned earlier, the bigger idea is effective
advertising through collaboration, and without collaboration
this initiative fails. Let me encourage you to sign up today. For
more information go to the APGA website, www.apga.org, or
go to www.naturalgasmarketingcenter.com. The terms and
conditions can be accessed on the APGA website.
I’m always amazed at the marketing innovation of
some of the public systems in our association. Imagine what
could happen, the impact on customer and natural gas load
growth, if hundreds of public gas systems became networked
instantly in their marketing, advertising, and communication
efforts.
AGL's Deregulated Residential Market Pricing - September-06
Average AGL Customer
Market-Based Pricing
DDDC =
Month Usage =
Annual Usage =
Marketer
1.29
17
717
Georgia Natural Gas
SCANA Energy
Shell Energy
Infinite Energy
Southern Company Gas
Marketer
Monthly
Service
Fee
AGL
Base
Charge
Amount
Gas
Usage
Rate/
Therm
$5.95
$5.75
$5.95
$5.95
$5.95
$16.88
$16.88
$16.88
$16.88
$16.88
$1.149
$1.119
$0.990
$1.067
$1.070
Fixed-Rate Pricing
Monthly
Annual
Average Avg. Total
Cost/Therm Cost/Therm
Usage
717
Total Weighted Average Rate ($/Therm)
Total Weighted Average Rate ($/ccf)
Total Weighted Average Rate ($/Mcf)
3
$2.49
$2.45
$2.33
$2.41
$2.41
$1.56
$1.52
$1.40
$1.47
$1.48
$3.02
$3.12
$31.15
$1.86
$1.91
$19.13
Gas
Usage
Rate/
Therm
$1.269
$1.269
$1.220
$1.229
$1.250
Monthly
Annual
Average
Avg. Total
Cost/Therm Cost/Therm
Usage
717
$2.73
$2.60
$2.56
$2.57
$2.59
$1.68
$1.67
$1.63
$1.64
$1.66
$2.61
$2.69
$26.90
$1.65
$1.70
$17.04
4
SRCS Update
by Bill DeFoor, Manager Regulatory Compliance Service
The Subscribed Regulatory Compliance Service officially “went live” on September 1, having completed its sixmonth development phase. SRCS staff is now assisting
Subscribers with moving data from their current Operator
Qualification systems to the new web-based SRCS system.
Records will be exported from the existing GMA Gas Section
Qualification Keeper files and imported into the SRCS system.
The operation and maintenance record keeping database is also being populated. Subscribers may build this database over time, as new work orders are entered into the system, or the process can be accelerated by entering historical
information right away.
Both systems will soon be accessible from the Gas
Authority website with individual user names and passwords
to provide security. SRCS staff are coordinating and training
subscribers’ personnel in the use of these new tools.
Even though September 1 was the contractual date for
commencement of services, the SRCS staff actually began
assisting Subscribers comply with the RP 1162 Public
Awareness Plan deadline in June. This effort continues with
updates to the original Plans and the required submittal of
these Plans to the Pipelines and Hazardous Materials Safety
Administration clearinghouse. Public Service Commission
inspection assistance has also been provided to three members
during the development phase.
For more information on the Subscribed Regulatory
Compliance Service, please contact:
Bill DeFoor, Manager
(678) 488-9470 bdefoor@gasauthority.com
Tim Franklin, Assistant Manager
(770) 317-6878 tfranklin@gasauthority.com
Damon Harper, Regulatory Compliance Analyst
(229) 376-3027 dharper@gasauthority.com
First Responder Liaison
Materials Available
The National Association of State Fire Marshals
(NASFM), in conjunction with the Pipelines and Hazardous
Materials Safety Administration (PHMSA), has developed the
Pipeline Emergencies training program for fire fighters and
other emergency responders. The program consists of a training manual, training video (VHS or DVD), an instructor program with PowerPoint presentations and interactive scenarios,
and a dedicated website (www.pipelineemergencies.com). The
entire package is free to fire departments. Others may purchase
the materials individually or as a kit for a nominal fee ($35 or
less). Pipeline Emergencies will fit perfectly into your emergency liaison sessions. It can also be used as a training and orientation tool for gas system employees. Information on ordering these materials can be found at the website shown above, at
the NASFM website - www.firemarshals.org, or by calling the
NASFM at (202) 737-1226.
New Hire and Promotions for
MGAG Staff
On September 18, Robin Meeks joined the staff of the
Gas Authority as a Capacity Planning and Forecasting
Analyst. Robin will report directly to Bill Culpepper. Robin
has over 7 years of experience in financial and operational
analyst positions, most recently with the Home Depot.
Kole Strippelhoff was promoted effective August 1, to
an Analyst position. Additionally, Kole is moving to the
Transportation and Storage part of the Operations group as a
Transportation/Storage Analyst on the Southern Pipeline to fill
the vacancy that was left by Lisa Tabakian. Kole will directly
report to Karen Copeland.
Sean Wright will also be moving to the Gas Supply
department as a Gas Supply Analyst. Sean’s financial background and forecasting training while here at the Gas
Authority will be invaluable in the Gas Supply area as we
restructure our supply portfolio and begin to relieve delivery
of our producing reserves. Sean will now report directly to
Tina Smith.
Welcome aboard Robin and congratulations to both
Kole and Sean!
Spot Supplies
Interstate Pipeline
Service Type
Sep-06
Spot
Market
Transportation
& Fuel
Total
Citygate
Change from
Prior Month
$6.860
$6.860
$6.860
$6.860
$0.42
$0.53
$0.18
$0.94
$7.28
$7.39
$7.04
$7.80
-3.5%
-3.5%
-3.6%
-3.3%
$6.860
$6.860
$6.860
$0.56
$0.20
$0.96
$7.42
$7.06
$7.82
-3.4%
-3.6%
-3.3%
$7.090
$7.090
$0.18
$0.01
$7.27
$7.10
-3.4%
-3.5%
Southern Natural
IT-2
IT-3
FT-3
FTG-3
South Georgia
IT
FT
FTG
Transco
IT
FT
5 Note: Excludes firm transportation reservation fees.
Financial Services
Chief Financial Officer
Director
Controller
Manager Risk Management
Senior Financial Analyst II
Senior Financial Analyst
Financial Associate
Senior Accountant
Member Services
Vice President
Communications
Sr. Communications Coordinator
Support Specialist
Member Support
Manager
Southern Region & TETCO
Southern Region
Northern Region
Northern Region
Market Development
Manager
Market Analyst
Regulatory Compliance
Manager
Assistant Manager
Susan Reeves
Chris Howell
John Williams
Jeff Billings
Ed Phillips
Glen Barden
Rachael D.
Rhonda Phillips
(678) 819-0911
(678) 819-0928
(678) 819-0909
(678) 819-0913
(678) 819-0934
(678) 819-0935
(678) 819-0937
(678) 819-0930
Chris Strippelhoff
(678) 819-0904
Yolanda White
Carol Vasilik
(678) 819-0926
(678) 819-0927
Scott Tolleson
Eric Groom
Rusty Hough
Bryan Smith
Rai Trippe
(678) 819-0912
(229) 377-0821
(229) 377-0822
(678) 819-0916
(678) 819-0938
Rodney Dill
Nicole Graham
(678) 819-0914
(678) 819-0905
Bill DeFoor
Tim Franklin
(678) 488-9470
(770) 317-6878
Operations/Supply Planning (all pipelines)
Vice President
Mike Frey
Transportation/Storage
Manager
Karen Copeland
Assistant Manager
Julie Lobdell
Analyst
Kole Strippelhoff
Accounting Analyst
Will Nuckolls
EAS Supply Planning/Trading
Director
Tina Smith
Analyst I
Sean Wright
Capacity Planning
Manager
Bill Culpepper
Analyst
Robin Meeks
(678) 819-0910
(678) 819-0906
(678) 819-0933
(678) 819-0921
(678) 819-0918
(678) 819-0908
(678) 819-0915
(678) 819-2900
(678) 819-0925
Municipal Gas Authority of Georgia
104 TownPark Drive
Kennesaw, Georgia 30144-5508
Employee
Service
Spotlight
Rachel Reaid
Larry Bass
Ed Phillips
14 years
12 years
4 years
We appreciate the contribution
these individuals have made to
our organization.
Please Note: AGL’s current marketer pricing can be
found on our website (www.gasauthority.com)
under the “Members Only” section.
m e m b e r s
GAS AUTHORITY CONTACTS
Adairsville Adel Americus Ashburn
Bainbridge Blakely Bowman Buford Butler
Byron Cairo Camilla Chambersburg Claxton
Cochran Commerce Covington Dawson Doerun
Donalsonville Douglas East Central Alabama
Eatonton Edison Elberton Fitzgerald Fort Valley
Grantville Greensboro Hartwell Havana
Hogansville Jasper LaFayette Lanett Lawrenceburg
Lawrenceville Louisville Lumpkin Madison
Manchester Maplesville Millen Monroe
Monticello Moultrie Nashville Pelham Perry
Quincy Quitman Roanoke Rockford Royston
Smyrna Social Circle Sparta Statesboro
Sugar Hill Summerville Sylvania Sylvester
Thomasville Thomson Tifton Toccoa Trion
Union Point Vienna Wadley Warner Robins
Waynesboro Wedowee West Point Winder
Wrens
CityGate News is a publication of the
Municipal Gas Authority of Georgia
Editor: Yolanda Santiago-White
Writers: The Staff of the Authority
Layout & Circulation: Carol Vasilik
For questions: Carol Vasilik (678) 819-0927
For address changes: Sandy Calkins (678) 819-0920
First Class Mail
U.S. Postage Paid
Permit No. 660
Kennesaw, GA