Piedmont CEO supports carbon reduction

In recent testimony before a U.S. Senate committee, Thomas E. Skains, Chairman, President and CEO of Piedmont Natural Gas and the 2009 Chairman of the American Gas Association (AGA), indicated broad industry support for energy efficiency and carbon reduction goals. But he also said that the Energy Efficiency Resource Standard (EERS) included in S. 548 and other impending energy bills, needs additional input and work.

“While EERS seeks to achieve a laudable goal, its mechanism is flawed. With a focus on huge after-the-fact penalties rather than incentives, the mechanism is tied to consumer behavior which the utility can neither control nor dictate. Without question, there are many actions that natural gas utilities can take – and do take – to encourage energy efficiency. But they cannot unilaterally adjust customers’ thermostats, close windows, or install additional insulation and new appliances in their homes.”

Noting the natural gas industry’s track record around energy efficiency and carbon reduction, Skains also noted that “AGA members strongly support reducing the nation’s energy and carbon intensity. In fact, natural gas utilities and their customers are leaders in these areas. Since 1970, the number of residential natural gas customers has increased from 38 million to more than 65 million, but their energy consumption and carbon emissions have remained flat.” Such progress, Skains indicated, is the result of more efficient appliances, tighter homes and energy efficiency measures, many of which were implemented by natural gas utilities.