City Council Special Call

CITY COUNCIL SPECIAL CALL MINUTES Wednesday, September 04, 2024 Council Chambers 4:00 PM 70 S. Clayton St, GA 30046 Call to Order PRESENT Mayor David Still Council Member Bruce Johnson Council Member Victoria Jones Council Member Austin Thompson Mayor Pro-Tem Marlene Taylor-Crawford Approval of Agenda Motion to approve agenda made by Council Member Thompson, Seconded by Council Member Johnson. Voting Yea: Mayor Still, Council Member Johnson, Council Member Jones, Council Member Thompson, Late: Mayor Pro-Tem Taylor-Crawford Council Business There is no public comment during this section of the agenda unless formally requested by the Mayor and the Council. 1. Municipal Gas Authority of Georgia (MGAG) Presentation Chuck Warbington, City Manager introduced Todd Hardigree, Natural Gas Director for the presentation for Municipal Gas Authority of Georgia, presentation was presented by Scott Tolleson, Vice President of Member Support and Government Affairs providing updates and an overview to the City of Lawrenceville's Council. Final Adjournment Motion to adjourn Special Call made by Council Member Thompson, Seconded by Council Member Johnson. Voting Yea: Mayor Still, Council Member Johnson, Council Member Jones, Council Member Thompson, Mayor Pro-Tem Taylor-Crawford Minutes Signatures ________________________ David R. Still, Mayor ________________________ Karen Pierce, City Clerk City of Lawrenceville Natural Gas Overview Scott Tolleson Municipal Gas Authority of Georgia  Gas Industry Overview Three Distinct Industry Segments Collectively Serve Consumers Residential Local Distribution Producers/ Supplier Pipelines Company (LDC’s)  Majors (ExxonMobil,  12 Major BP, Chevron, Shell,  Investor-Owned Commercial Interstate Conoco/Phillips, etc.) Pipelines Utilities  Independents (over  Federal Energy  Public Gas Systems 1,000) Regulatory  State Regulation  Produce 80% US Commission gas (FERC) Regulated Industrial/Power Generation -2-  Gas Industry Overview Reliable, Safe, Secure & Affordable – Extensive Pipeline & Storage Network -3-  Interstate Pipelines in Georgia • Pipelines were originally built in the 1950’s and 1960’s to move natural gas from the Gulf Coast areas to the Northeast. • Natural Gas now flows both south to north and north to south with the shale revolution Board Planning Retreat September 14-16, 2022  Lawrenceville served by Transcontinental Pipeline • Lawrenceville has three “Take Points” on Transcontinental (Transco) line. • One near Walnut Grove • Second on Suwanee Lateral • Third near Dacula on Suwanee Lateral Board Planning Retreat September 14-16, 2022  Gwinnett County Natural Gas Distribution Companies • Buford, Lawrenceville and Sugar Hill are municipal natural gas providers in northeast Gwinnett County • Municipal systems were originally built in rural, less densely populated area. These area were less desirable to investor-owned utilities. These systems have been an economic and community development driver • Atlanta Gas Light (AGL) is the provider in southwest Gwinnett County • Public Service Commission (PSC) has established safety boundaries to avoid overlap of infrastructure Board Planning Retreat September 14-16, 2022  U.S. Natural Gas Reserves  Over 125 years of known reserves at projected depletion rates  Shale Revolution began in 2008 with horizonal drilling and hydraulic fracturing of rock formations U.S. is poised to export 20% of total production through Liquified Natural Gas (LNG) Terminals Why Create a Municipal Gas Authority of Georgia? Regulatory Driven to Market Driven 1992/ 1930's 1950's 1970's 1978 1980 1985 1987 1993 1996 1999 2004 2006 2010 2016 Rapid Municipal growth in Systems demand, Built in regulated Shortages Southeast wellhead (Price Natural Gas Gas prices Induced) Policy of Bubble FERC 1978 (Price/ #436 Recession Induced) FERC #636 Created LDC Restructuring AGL- (“unbundling”)Complete Unbundling Forecast & show LNG PSC Deregulated Imports Involvement Gas Supply required to Increases Shale Gas balance Significantly Revolution market Begins HISTORIC OVERVIEW: From Regulated Prices in All 3 Segments Acquisition of AGLR by Southern Co. & To Market Based Pricing for the Commodity Creation of Southern Co. Gas and Acquisition Gas Authority Born Out of Industry Change of 50% Southern Natural by Southern Co. -9- Creation of the Gas Authority  Largest non-profit, joint-action natural gas agency in the nation  Established in 1987 by Georgia law  Primary purpose is to provide adequate, dependable and economical supplies of natural gas to municipal distribution systems Our Mission: To provide municipalities a reliable, economical supply of natural gas and to assist them in developing and growing their gas systems to optimize the benefits of public ownership. - 10 -  Governance of the Gas Authority  Governed by a Twelve-Member Board of Directors * Elected at large for 3-year, staggered terms * Board consists of Elected Officials, City Managers & Operators Daren Perkins Shelly Berryhill Todd Hardigree Gas Superintendent, Buford, GA City Commissioner, Hawkinsville, GA Chairman Elected to Board: 2011 Elected to Board: 2023 Gas Director, Lawrenceville, GA (Chairman: 2017 - 2019) Elected to Board: 2018 Donna McKay (Vice Chairman: 2022-2023) Kenneth Usry Mayor, Wadley, AL Former Mayor, Thomson, GA Elected to Board: 2023 Buddy Duke Elected to Board: 2011 Vice Chairman (Chairman: 2019 - 2021) Matthew Bradshaw Mayor, Adel, GA Engineering Director, Dublin, GA Elected to Board: 2002 Jonathan Mason Elected to Board: 2024 (Chairman: 2007-2009) Asst. Gas Superintendent, Borough of Chambersburg, PA Chris White Bruce Maples Elected to Board: 2017 City Manager, Thomasville, GA Secretary/Treasurer Elected to Board: 2024 Asst. City Manager, Albany, GA Irving Thompson Elected to Board: 2022 General Manager Jon Herschell East Central Alabama Gas District City Manager, Hartwell, GA Elected to Board: 2017 Elected to Board: 2024 - 11 - Gas Authority Overview Where does the Gas Authority fit into the system? - 12 -  Gas Authority Overview Growth History of Gas Authority 1988 2023 Gas Authority Members 61 83 Municipal Customers 0 15 Regulatory Compliance Subscribers 0 77 Annual Member Volumes (MMBtu) 24,121,000 50,183,392 Member’s Customers 131,804 271,633 - 13 - Members of the Gas Authority - 14 - City of Lawrenceville Natural Gas City of Gas Authority Lawrenceville Total Number of Customer 53,000+ 271,000+ Annual Volume (Aug 23 – Jul 24) 4,382,077 50,183,392 All-time Peak Day Volume (12/23/2022) 65,760 395,752 - 15 - City of Lawrenceville Natural Gas 2024 Top 10 Customer Count by Member 60,000 50,000 40,000 Total Customers 30,000 20,000 10,000 - - 16 - City of Lawrenceville Natural Gas CY 2023 Top 10 Throughput by Member 4,000,000 3,500,000 3,000,000 Calendar 2023 Volumes 2,500,000 2,000,000 1,500,000 1,000,000 500,000 - - 17 - City of Lawrenceville Natural Gas 80,000 Lawrenceville Firm Capacity Utilization August 2023 -July 2024 70,000 Load Factor 24% 60,000 50,000 40,000 30,000 20,000 10,000 0 Daily Throughput Year-round Firm Capacity Total Capacity ( Seasonal/Peaking) - 18 - Key Member Service Areas Member Support-Customized System Consulting Retail rates, budget forecasts, & industrial customer relations Strategic planning, mandated reporting & system analysis Market Development-Marketing Programs Residential & commercial customer growth, retail & direct sales Program development & implementation Government Affairs State & federal energy-related matters Public Service Commission (PSC) Representation Economic Development Partner with ECG to form economic development alliance Member Liaison & Relationship Management Connect Members with other Members, state-wide natural gas stakeholders and national energy policy makers. - 19 - Key Member Service Areas Communications & Training Customer relations Customer education on how natural gas is delivered and priced in Georgia Regulatory Compliance Subscribed program (AL, GA, FL) Assist participants in maintaining compliance with pipeline safety regulations Liaison between Members and Georgia Public Service Commission (PSC) Operator Training and Operator Qualification Service established in 2024 to provide training to Members’ operations and field staff Basic gas operations, Operator Qualification and record keeping - 20 - Municipal Gas Authority of Georgia The Gas Authority is different; We’re not just a marketing or asset management company We work exclusively for publicly-owned gas systems Our Members are both our “Stockholders” and our “Customers” All benefits, financial and otherwise, flow back to our Members and the municipalities we serve Joint-action works ………. “1 + 1 = More than 2” City of Lawrenceville Natural Gas Overview Scott Tolleson Municipal Gas Authority of Georgia  Gas Industry Overview Three Distinct Industry Segments Collectively Serve Consumers Residential Local Distribution Producers/ Supplier Pipelines Company (LDC’s) ➢ Majors (ExxonMobil, ➢ 12 Major BP, Chevron, Shell, ➢ Investor-Owned Commercial Interstate Conoco/Phillips, etc.) Pipelines Utilities ➢ Independents (over ➢ Federal Energy ➢ Public Gas Systems 1,000) Regulatory ➢ State Regulation ❖ Produce 80% US Commission gas (FERC) Regulated Industrial/Power Generation -2-  Gas Industry Overview Reliable, Safe, Secure & Affordable – Extensive Pipeline & Storage Network -3-  Interstate Pipelines in Georgia • Pipelines were originally built in the 1950’s and 1960’s to move natural gas from the Gulf Coast areas to the Northeast. • Natural Gas now flows both south to north and north to south with the shale revolution Board Planning Retreat September 14-16, 2022  Lawrenceville served by Transcontinental Pipeline • Lawrenceville has three “Take Points” on Transcontinental (Transco) line. • One near Walnut Grove • Second on Suwanee Lateral • Third near Dacula on Suwanee Lateral Board Planning Retreat September 14-16, 2022  Gwinnett County Natural Gas Distribution Companies • Buford, Lawrenceville and Sugar Hill are municipal natural gas providers in northeast Gwinnett County • Municipal systems were originally built in rural, less densely populated area. These area were less desirable to investor-owned utilities. These systems have been an economic and community development driver • Atlanta Gas Light (AGL) is the provider in southwest Gwinnett County • Public Service Commission (PSC) has established safety boundaries to avoid overlap of infrastructure Board Planning Retreat September 14-16, 2022  U.S. Natural Gas Reserves ❑ Over 125 years of known reserves at projected depletion rates ❑ Shale Revolution began in 2008 with horizonal drilling and hydraulic fracturing of rock formations U.S. is poised to export 20% of total production through Liquified Natural Gas (LNG) Terminals Why Create a Municipal Gas Authority of Georgia? Regulatory Driven to Market Driven 1992/ 1930's 1950's 1970's 1978 1980 1985 1987 1993 1996 1999 2004 2006 2010 2016 Rapid Municipal growth in Systems demand, Built in regulated Shortages Southeast wellhead (Price Natural Gas Gas prices Induced) Policy of Bubble FERC 1978 (Price/ #436 Recession Induced) FERC #636 Created LDC Restructuring AGL- (“unbundling”)Complete Unbundling Forecast & show LNG PSC Deregulated Imports Involvement Gas Supply required to Increases Shale Gas balance Significantly Revolution market Begins HISTORIC OVERVIEW: From Regulated Prices in All 3 Segments Acquisition of AGLR by Southern Co. & To Market Based Pricing for the Commodity Creation of Southern Co. Gas and Acquisition Gas Authority Born Out of Industry Change of 50% Southern Natural by Southern Co. -9- Creation of the Gas Authority ➢ Largest non-profit, joint-action natural gas agency in the nation ➢ Established in 1987 by Georgia law ➢ Primary purpose is to provide adequate, dependable and economical supplies of natural gas to municipal distribution systems Our Mission: To provide municipalities a reliable, economical supply of natural gas and to assist them in developing and growing their gas systems to optimize the benefits of public ownership. - 10 -  Governance of the Gas Authority ➢ Governed by a Twelve-Member Board of Directors * Elected at large for 3-year, staggered terms * Board consists of Elected Officials, City Managers & Operators Daren Perkins Shelly Berryhill Todd Hardigree Gas Superintendent, Buford, GA City Commissioner, Hawkinsville, GA Chairman Elected to Board: 2011 Elected to Board: 2023 Gas Director, Lawrenceville, GA (Chairman: 2017 - 2019) Elected to Board: 2018 Donna McKay (Vice Chairman: 2022-2023) Kenneth Usry Mayor, Wadley, AL Former Mayor, Thomson, GA Elected to Board: 2023 Buddy Duke Elected to Board: 2011 Vice Chairman (Chairman: 2019 - 2021) Matthew Bradshaw Mayor, Adel, GA Engineering Director, Dublin, GA Elected to Board: 2002 Jonathan Mason Elected to Board: 2024 (Chairman: 2007-2009) Asst. Gas Superintendent, Borough of Chambersburg, PA Chris White Bruce Maples Elected to Board: 2017 City Manager, Thomasville, GA Secretary/Treasurer Elected to Board: 2024 Asst. City Manager, Albany, GA Irving Thompson Elected to Board: 2022 General Manager Jon Herschell East Central Alabama Gas District City Manager, Hartwell, GA Elected to Board: 2017 Elected to Board: 2024 - 11 - Gas Authority Overview Where does the Gas Authority fit into the system? - 12 -  Gas Authority Overview Growth History of Gas Authority 1988 2023 Gas Authority Members 61 83 Municipal Customers 0 15 Regulatory Compliance Subscribers 0 77 Annual Member Volumes (MMBtu) 24,121,000 50,183,392 Member’s Customers 131,804 271,633 - 13 - Members of the Gas Authority - 14 - City of Lawrenceville Natural Gas City of Gas Authority Lawrenceville Total Number of Customer 53,000+ 271,000+ Annual Volume (Aug 23 – Jul 24) 4,382,077 50,183,392 All-time Peak Day Volume (12/23/2022) 65,760 395,752 - 15 - City of Lawrenceville Natural Gas 2024 Top 10 Customer Count by Member 60,000 50,000 40,000 Total Customers 30,000 20,000 10,000 - - 16 - City of Lawrenceville Natural Gas CY 2023 Top 10 Throughput by Member 4,000,000 3,500,000 3,000,000 Calendar 2023 Volumes 2,500,000 2,000,000 1,500,000 1,000,000 500,000 - - 17 - City of Lawrenceville Natural Gas 80,000 Lawrenceville Firm Capacity Utilization August 2023 -July 2024 70,000 Load Factor 24% 60,000 50,000 40,000 30,000 20,000 10,000 0 Daily Throughput Year-round Firm Capacity Total Capacity ( Seasonal/Peaking) - 18 - Key Member Service Areas ➢Member Support-Customized System Consulting Retail rates, budget forecasts, & industrial customer relations Strategic planning, mandated reporting & system analysis ➢Market Development-Marketing Programs Residential & commercial customer growth, retail & direct sales Program development & implementation ➢Government Affairs State & federal energy-related matters Public Service Commission (PSC) Representation ➢Economic Development Partner with ECG to form economic development alliance ➢Member Liaison & Relationship Management Connect Members with other Members, state-wide natural gas stakeholders and national energy policy makers. - 19 - Key Member Service Areas ➢Communications & Training Customer relations Customer education on how natural gas is delivered and priced in Georgia ➢Regulatory Compliance Subscribed program (AL, GA, FL) Assist participants in maintaining compliance with pipeline safety regulations Liaison between Members and Georgia Public Service Commission (PSC) ➢Operator Training and Operator Qualification Service established in 2024 to provide training to Members’ operations and field staff Basic gas operations, Operator Qualification and record keeping - 20 - Municipal Gas Authority of Georgia ➢The Gas Authority is different; We’re not just a marketing or asset management company We work exclusively for publicly-owned gas systems Our Members are both our “Stockholders” and our “Customers” All benefits, financial and otherwise, flow back to our Members and the municipalities we serve Joint-action works ………. “1 + 1 = More than 2”