GREEN TEAM Project Update

1
GREEN TEAM Project Update
21 April 2008 ? SGA Marketing Roundtable
2
Why A Green Team?

• We are largely absent from the national
  energy discussion in a proactive way
• We are entrusting others to tell our story
• More than 87 of American consumers are
  concerned about the environment
• Almost 4 in 10 are buying products they
  believe to be environmentally friendly
• 28 say theyve made major change to their
  lifestyle to protect the environment

3
Whos Involved

• Founding Five
• AGL Resources
• Alagasco
• Mobile Gas
• Piedmont Natural Gas
• TECO Peeples Gas
• Interest has grown to include more than 50
  companies in 22 states and Canada, and industry
  associations (APGA, AGA, ESC, SGA)

4
A Progression
April 1, 2008 Leadership selects agency to
support Green Team initiatives
December 07 Meeting in Atlanta to grow team,
create committees begin work people 18
August 07 Meeting to discuss marketing synergies
creates Green Team people 5
January 08 Meeting in Charlotte for committee
updates and next steps people 45
April 21, 2008 Green Team updates SGA Exec Mgmt
Conference
5
Areas of Focus
6
Calculations - Emissions

• Steve Roberson
• Alagasco

7
Site vs. Source Use of Energy

• Important Notes on Information used in this
  presentation
• The Energy Information Administration (EIA) of
  DOE is the source of all information using data
  filed annually by each gas and electric utility.
• Annual Reviews and databases are prepared by EIA
  each year showing information for the prior year.
• All data shown in this presentation is taken
  directly from the EIA web site.
• Any calculations performed using the data are
  clearly noted as such, with reference to the
  formulas and the source of the information.

8
EIA Overall Total Energy Flow in US 2006
Quadrillion BTU
Source Energy Information Administration Annual
Energy Review for 2006 http//www.eia.doe.gov/emeu
/aer/pdf/aer.pdf
9
EIA Electricity Flow in US 2006 Quadrillion
BTUh
Source Energy Information Administration Annual
Energy Review for 2006 http//www.eia.doe.gov/emeu
/aer/pdf/aer.pdf
10
EIA Natural Gas Flow in US 2006 Quadrillion
BTU
Overall Efficiency 96.8
Source Energy Information Administration Annual
Energy Review for 2006 http//www.eia.doe.gov/emeu
/aer/pdf/aer.pdf
11
Site vs. Source

• Basic Diagrams of Energy Flow from Source to Site
  of End Use

64.7 Conversion Losses
30.24 Of the Source Energy Reaches the End User
3.2 T D Losses
1.86 Misc. Losses
(Using EIAs National Average Figures)
12
Site vs. Source

• Why should we use Natural Gas instead of
  Electricity for residential appliances?

13
Site vs. Source

• Example Heating Water with Natural Gas vs.
  Electricity
• Heat 1000 Gallons from 50 Deg F to 100 Deg F
• ( 1 BTU Energy to raise 1 pound of water by 1
  Deg F )
• 8,340 pounds of Water x 50 Deg rise 417,000 BTU
• Using Minimum Standards of Efficiency
• from DOE 10 CFR 430.32 (d)
• Electric Water Heater
• 40 Gallon Electric Water Heaters 91.72
• Natural Gas Water Heater
• 40 Gallon Gas fired Water Heater 59.4

14
Site vs. Source

• Electric Water Heater ( Per 10 CFR430.32 (d)
  )
• 417,000 BTU Output _at_ 91.72 Efficiency
• 454,645 BTU Input at the Site
• _at_ 30.24 Efficiency for Power Plants
• 1,503,456 BTU Fuel Input to Power Plant Source
• Natural Gas Water Heater ( Per 10 CFR 430.32
  (d) )
• 417,000 BTU Output _at_ 59.4 Efficiency
• 702,020 BTU Input at the Site
• _at_ 96.8 Efficiency of Natural Gas System
• 725,227 BTU from Gas Well Source
• Electric Water Heater requires 2.07 times
• the Source energy of a Natural Gas Water Heater

15
Site vs. Source

• What if we only used Natural Gas power plants to
  produce Electricity for residential appliances?

16
Site vs. Source

• Comparing Natural Gas Fueled Power Plant vs.
• Natural Gas Direct to Water Heater
• Electric Water Heater
• 417,000 BTU Output _at_ 91.72 Efficiency
• 454,645 BTU Input at the Site
• _at_ 38.83 Eff Natural Gas Fired Power Plants
• 1,170,860 BTU Natural Gas Input to Power Plant
  Source
• Natural Gas Water Heater
• 417,000 BTU Output _at_ 59.4 Efficiency
• 702,020 BTU Input at the Site
• _at_ 96.8 Efficiency of Natural Gas System
• 725,227 BTU from Gas Well Source
• Using Power from Natural Gas fired Power Plants
  requires
• 1.61 times the Source energy of a Gas Water Heater

17
Making the Connection,Energy and the Environment
18
EmissionsEIA Data Source Power Generation
Emissions
http//www.eia.doe.gov/cneaf/electricity/epa/epa_s
prdshts.html
19
EmissionsEIA Historical Data Power Generation
in Alabama
20
EmissionsEIA Historical Data Emissions in
Alabama
21
EmissionsConsolidated Power Emissions Data
Calculate Rates
Note One Metric Ton 2204.62 Pounds
22
EmissionsPower Plants vs. Direct Use of Natural
Gas

• Basic Numbers
• 1 MWH of Electricity 3.413 MMBTU of Natural
  Gas
• Generation of 1 MWH of Electricity in the State
  of Alabama
• results in the release of 1,336 pounds of CO2
• ( Assuming overall average emissions rate for all
  power generation )
• Combustion of 3.413 MMBTU of Natural Gas results
  in
• the release of 399 pounds of CO2.
• 116.83 Pounds CO2 / MMBTU from EPA Natural Gas
  Combustion
• http//epa.gov/ttn/chief/ap42/ch01/final/c01s04.pd
  f

23
Policy Committee Walking the Walk

• Christine Cole
• DTE Energy

24
Environmental Policy (Draft)

• Recognizing the need to model green behavior
  in the communities we serve, our companies are
  committed to reducing our carbon footprint by
• Identifying and reducing pollution
• Protecting and improving the environment
• Sharing best practices to achieve this goal

25
Policy Committee Deliverables

• Develop a platform to share best practices
• Create Employee Engagement
• Corporate Sustainability

26
Deliverable 1Platform For Sharing Best Practices

• Collecting best practices from participating
  companies - Ongoing
• Organizing the data into categories. Completed!
• Develop format to post best practices on the SGA
  website. - In process, ETA June 1st

27
Best Practice Categories

• Facilities Management
• Fleet Management
• Employee Engagement

28
Facilities Management Examples

• Replace existing lighting with CFL or LED Bulbs
• The easiest way that a company can significantly
  increase energy efficiency and decrease energy
  costs!
• Investment in Energy Management Systems
• These systems control lighting and HVAC systems
  to optimize energy use and realize significant
  cost savings
• Recycling Programs
• By recycling paper, cans, cardboard and ink
  cartridges, companies can do their part in
  reducing the amount of waste that hit our
  countries landfills.
• Utilization of recycled paper/Sustainable Forest
  endorsed paper
• Companies that use recycled paper or paper that
  comes from a sustainable forest help reduce the
  number of trees harvested.

29
Fleet Management Examples

• No Idling Policy
• In an effort to reduce carbon emissions, one
  company has instituted a no idling policy for
  their fleet.
• GPS Routing
• What to save big dollars? One company has
  implemented GPS routing and save over 1.5 million
  miles last year! Less driving means less carbon
  emissions and more savings on gasoline costs!
• Fleet Changes
• Using hybrid vehicles and downsizing trucks can
  save money and reduce emissions.

30
Employee Engagement Examples

• Creation of a Corporate Environmental
  AwardRecognize individuals, suppliers or other
  businesses in your community by creating an
  environmental award.
• Develop an employee Green TeamIncrease
  employee engagement by creating a team(s) of
  employees that work on projects both internally
  and in the communities to promote green.
• Create Vehicle for communicationLaunching an
  internal website, electronic newsletter or a
  green campaign can increase employee awareness
  and engagement.

31
Deliverable 2Create Employee Engagement

• Production of a bi-monthly e-newsletter
• Create an avenue for our companies to communicate
  with our employees regarding reducing their
  carbon footprint from both an individual
  perspective and corporately.
• First edition scheduled for distribution in June.

32
E-Newsletter Content

• Introduction
• Why go green
• Industry mission
• Simple Tips to Becoming Green
• Feature Story
• Company Spotlight

33
Deliverable 3Corporate Sustainability

• Taking our companies to the next level, this
  section of the SGA website will provide resources
  on creating corporate sustainability.
• Examples
• Book ResourceMaking Sustainability Work by Marc
  J. Epstein.
• The author provides an introduction of nine
  principles of sustainability performance that
  include ethics, governance, transparency,
  business relationships, financial returns,
  community involvement, value of products and
  service, employment practices and protection of
  the environment.
• ISO 14001 EMS What is it? Go to www.iso.org to
  find out more!

34
Messaging Committee

• Yvonne MerkelAGL Resources Inc

35
Committee Objective
Develop and execute an integrated, multi-faceted
communications plan that capitalizes on group
synergies to position natural gas as the
preferred, environmentally responsible energy
choice for homes and businesses.
WHAT TO SAY
Identify key message points and agreed upon data
points
HOW TO SAY IT
Green tagline that most effectively captures key
points
WHERE TO SAY IT
Maximize existing vehicles and create new ones
36
Message Refinement and Integration
Understand
Validate
Qualitative study to validate findings and test
creative execution of primary messages
Quantitative study for perception baseline and
test select messaging options
Connected Success
Augment
Integrate
Engage agency to create overarching campaign that
gives industry one voice
Leverage existing communication channels for
quick hits in each market
37
Environmental Research

• Objective Assess customer perceptions of
  environmental concerns and natural gas as
  environmentally friendly energy choice
• Qualitative Focus groups held in Charlotte
  (August 07)
• Quantitative Almost 3,500 phone interviews
  conducted (433 per state in eight-state region)
• Quantitative and Qualitative Online survey to
  all eight states (February 2008)

38
Key Findings

• About 80 think environmental issues very
  important and 40 very familiar of environmental
  issues
• 60 thought electric generation has very
  important impact on environment
• Electricity considered more environmentally-friend
  ly than natural gas in all markets

39
Environmentally Friendly Fuel
40
Recommendations

• Leverage opportunity to educate around the
  details, uncover truth about electricity
• Greater promotion of conservation programs will
  enhance environmental image
• Promote eco-consciousness of both product and
  company
• Continue research to ensure effectiveness of
  customer education campaign

41
Leverage Existing Vehicles
Company Websites
Invoice Communications
Trade Segment Collateral Communications
Employee Communications Community Relations
Touchpoints
Customer Service Contact Centers
Customer Collateral
Existing Media Print, Radio, TV, Online
Event Signage
42
Agency RFP

• Enhanced creative execution and comprehensive
  co-opd media plan
• 11 agencies responded
• 3 finalists presented

43
Selecting an Agency

• AGENCY CRITERIA
• Vision
• Understand mission
• Creativity
• Ability to move quickly
• Ability to work with a large group

44
Meet the AgencyPorter Novelli

• Brad MacAfee
• Megan King

45
Why Porter Novelli

• National, integrated marketing, advertising
  and PR agency that can grow with our campaign
• Porter Novelli has a proven track record for
  environmental and green marketing
• Porter Novelli has executed similar programs
  successfully for Propane Council, Abundant
  Forests Alliance, Almond Board and others

46
(No Transcript)
47
(No Transcript)
48
(No Transcript)
49
(No Transcript)
50
The Insight

• People want to do the right thing when it comes
  to the environment... but they dont want to give
  up their comfort and lifestyle to do so.

51
Natural Gas Green Positioning

• Natural Gas is an environmentally-friendly
  choice you can make today. Natural gas is
  efficient, reliable and clean burning. Choosing
  natural gas today means you can help save energy,
  reduce emissions and protect the environment
  without compromising performance and lifestyle.

52
(No Transcript)
53
Phase 1

• Message Map
• Logo Finalization
• Print Ad
• Statement Stuffer
• Microsite
• Phase 2 Media Plan
• Foundational PR

54
Discussion / QA