EnergyTech2015.com Track 1 Session 3 THE GAS AND ELECTRIC UTILITY INDUSTRY: CARBON CONSTRAINED This session will focus on the impact U.S. EPA Clean Power Plan (CPP) will play in shaping changes to the natural gas market, including the shale gas marketplace both domestically and perhaps internationally. The inter-dependency between the natural gas and electric industry is growing as there is more movement toward natural gas fired generation and away from coal fired generation. Natural gas companies are already seeing an increased need for infrastructure expansion from the growing gas-electric inter-dependency. What are the benefits and risks facing the natural gas industry? What role does the shale gas industry play? What will the changes mean for gas producers, electric utilities and technology now and in the future both in the U.S and abroad? Moderator: Commissioner Beth Trombold, PUCO Jeff Murphy , Dominion Todd Snitchler, former PUCO Chairman, Attorney, McDonald Hopkins Anuradha Annaswamy, MIT Professor

1. The Electric & Gas
Industry: Carbon
Constrained
Todd A. Snitchler
Principal
Vorys Advisors, LLC

2. Vorys Advisors, LLC
 Vorys Advisors provides government relations and strategic
counsel to Ohio businesses and a wide variety of other
professionals in manufacturing, health care, energy, real
estate, venture capital, technology and other industries.
 Former Congressman Zack Space (D-OH), former Ohio
Senate President Tom Niehaus (R), former PUCO
Chairman and State Representative Todd A. Snitchler,
Matthew Hammond, Karen Cincione, and Dave Hoffel
serve as principals for Vorys Advisors.

3. Gas & Electric Coordination:
Carbon Constrained
 How do regulators look at these issues?
 Federal Regulators
 Federal Energy Regulatory Commission
 USDOT – Pipeline and Hazardous Materials Safety
Administration (PHMSA)
 State Regulators
 Local Government
 Community Members

4. Federal Regulators
FERC
- Changing supply, environmental rules,
costs are bringing natural gas and electric
sectors together
- Aug 2013 initiated docket to address
concerns over coordination between
industries.
PHMSA
- Growth of pipeline infrastructure means
additional safety concerns
- Change in gas development means new
manner of collecting and moving
commodity

5. State Regulators
Supply for Electricity
Generation
Siting Concerns
Environmental Impact
Pipeline Safety

6. How does Natural Gas fit in a
Carbon Constrained World?
Cost
 Natural Gas prices at historic
lows
 Supply at historic highs
 Restructured Market and
Regulated Markets
experiencing same pricing
impact
Environment
 Federal Clean Power Plan to
reduce CO2 emissions
 State goals for reducing CO2
emissions
 Natural Gas emission profile
versus other generation
sources

7. Other Considerations
• LNG exports
• Low Commodity price
impact on shale
development
• Lower costs of
production
• Shift to pipeline siting as
battleground for
opponents of natural
gas

8. Gas and Electric Utility Industry:
Carbon Constrained
 Constrained or an opportunity for innovation?
 Require review of the status quo and implementation of
new solutions to meet changing market and consumer
dynamics
 Regulators will have to think differently about solutions –
both in the short and long-term, including the means in
which decisions are made and implemented

9. Todd A. Snitchler
Vorys Advisors, LLC
52 E. Gay Street
Columbus, OH 43215
tasnitchler@vorysadvisors.com
614.464.6222 (office)
330.316.7492 (cell)