Economic Developers Association George Faatz, Director, External - PowerPoint PPT Presentation

Presentation to The Virginia Economic Developers Association George Faatz, Director, External Affairs 757-616-7507 gfaatz@aglresources.com March 20, 2015

Virginia Natural Gas Service Territory Serves • Over 284,000 residential, commercial Counties/Cities and industrial customers • • Charles City Middlesex • • Chesapeake New Kent • • Essex Newport News • • Gloucester Norfolk • • Hampton Poquoson • • Hanover Suffolk • • James City Virginia Beach • • King and West Point Queen • Williamsburg • King William • York • Mathews GREEN = VNG territory served 2

Lanexa to West Point Pipeline Project

2012 NEED Legislation – HB 559 & SB 511 Natural Gas Infrastructure Expansion for Economic Development Legislation (NEED) • Provides a new tool to more proactively expand natural gas infrastructure to support economic development • Allows natural gas service to be extended if certain requirements are met: 1. Located where adequate infrastructure is not available 2. Must provide future economic development opportunities 3. Developer/customer/locality must provide a binding commitment for at least 5 years and 50% of the pipe’s capacity 4. After good faith negotiations, and developer/occupant cannot pay CIAC

2015 MAIN Legislation – HB 1475 & SB 1163 Making Access to natural gas Infrastructure Now (MAIN) • Allows Virginia’s natural gas utilities to implement programs to extend new infrastructure into unserved areas of the utility’s service territory. • Benefits of the program include: • More Virginia consumers will have the opportunity to benefit from natural gas and lower their energy costs. • Existing customers will not subsidize expansion. • When the cost of the expansion is recovered, rider is removed. • Increased economic development opportunities • SCC must review and approve MAIN program before they are implemented.

Abundant. American. Affordable.

Reliability & Price Stability 195 DTI (Dominion Transmission Inc) TCO (Columbia Gas) 185 ACP (Atlantic Coast Pipeline) VNG (Virginia Natural Gas) Transco (Transcontinental) 165