American Gas: Commissioner Jagdmann, congratulations to you on being elected president of NARUC. With your background as an experienced regulator serving on the Virginia State Corporation Commission and on various NARUC committees, what do you hope to achieve as president, and can you describe how you envision continuing the multiyear theme of Connecting the Dots?
Judith Jagdmann: NARUC is focused on the pressing issues of the day, providing many opportunities for learning and information sharing. Fortunately, our immediate past president, Paul Kjellander, set us on an excellent course by suggesting a theme that promotes continued development over time. We will continue our analysis of issues associated with decarbonization, infrastructure and cybersecurity—with a focus on supply chain issues. Despite their individual complexities, these and other topics are interrelated, and we must connect the dots to appreciate their combined impact upon reliable and affordable service that meets the policy goals and mandates of the varying states.
As I noted during my installation remarks, NARUC has a host of resources that our members—and others—can access to broaden knowledge, provide insights and sharpen skills in key areas. With multiple documents available across many NARUC sectors, we will take steps to highlight the many offerings currently available and in production for ease of reference. We will also continue our opportunities for engagement—NARUC has a Commission Chair’s Council, a new microsite for committee chairs, and other tools to encourage the exchange of ideas between members. The goal is to assure that our members are equipped with resources to inform the decisions that make the most sense for their states.
In that vein, NARUC will soon begin a monthly update to highlight recent activities and resources. This will amplify existing messaging and encourage additional involvement, particularly among those new to NARUC.
AG: Much of your work in energy has centered on policy. Effective public policy is necessary to help further develop natural gas infrastructure, for example. Where do you see public policy going when it comes to continuing to assure ongoing consumer access to affordable and reliable natural gas?
JJ: Affordability and reliability—as well as safety—are the chief concerns for utility regulators. At the federal level, Congress recently took a big step to increase the safety of the natural gas distribution system by authorizing a substantial increase in the state pipeline safety grants in its last Pipeline and Hazardous Materials Safety Administration reauthorization. Now we are looking for Congress to appropriate those dollars, so the authorization doesn’t become a hollow promise.
There are also state policies in place that have enabled local distribution companies to steadily remove cast-iron and bare-steel pipes from the natural gas distribution system. This has typically been accomplished by some combination of statute, rule or Commission order. These provide reasonable opportunities or incentives for this action while keeping costs to the customer in mind.
As new statutes and policies are developed at the state or federal level, NARUC and state Commissions will continue—as the subject matter experts on utility regulation—to offer our experience, knowledge and insight on cost, reliability, affordability and other factors within our area of expertise to legislative bodies and other policymakers.
AG: Along with serving on NARUC’s Executive Committee, you serve on the Committee on Electricity. Electricity and gas must work together even more closely in the future to deliver an effective all-of-theabove energy strategy. How do you expect the electric and natural gas industries to work together in the future? Also, what lessons can these industries learn from one another?
JJ: Utility regulators always strive to be mindful of the interdependencies between the natural gas and electric utility sectors. This is particularly important as many states pursue cleaner energy goals and aim to improve resilience and reliability while keeping the energy system safe and affordable. On the electric side, the integration of increasing amounts of intermittent wind and solar generation—as well as energy storage—benefits from thoughtful planning, with an appreciation of how generation fueled by natural gas and other sources can contribute to reliable, affordable power as part of a diverse fuel mix, as our individual state statutes allow. On the natural gas side, NARUC is interested in pilot projects focused on emerging technologies to reduce the environmental impact of natural gas service, such as hydrogen blending, renewable natural gas use and advanced methane leak detection tools. Further, NARUC appreciates that a plentiful, affordable supply of natural gas needs to be available for end-use customers and natural gas-fueled power producers.
I am an optimist and believe the electric and natural gas industries will be working together to responsibly deploy innovative technologies and successful pilot programs to provide benefits for both electric and gas customers. In that vein, electric-gas coordination is a frequent topic of discussion at NARUC conferences and on committee calls. NARUC’s Committees on Electricity and Gas, led by Commissioner Ann Rendahl from Washington state and Commissioner D. Ethan Kimbrel from Illinois, respectively, often collaborate on educational meetings. Together, the committees facilitate opportunities for state regulators to hear from experts who may have divergent opinions, such as the North American Electric Reliability Corporation, natural gas and electric utilities, industry associations such as the American Gas Association, the U.S. Department of Energy and National Laboratories, state energy offices and other critical stakeholders. No doubt these issues will continue to be front of mind.
AG: Let’s talk more about cleaner energy. What policies must be put in place to help further support the proactive work by natural gas utilities as they continue to invest in our energy systems and explore energy options such as hydrogen and RNG? Can you discuss the key role of energy efficiency in supporting these cleaner energy options?
JJ: We start with the understanding that Congress, state legislatures and empowered regulatory bodies have the ultimate say on carbon policy. But I think we can all agree that there is a definite call for carbon reduction from a variety of sources. I think we can also agree that the safety of the natural gas distribution system must remain a top priority. Hydrogen and RNG both have the potential to be significant contributors to decarbonization as they are blended into the natural gas system; however, the natural gas distribution infrastructure—as well as many residential, commercial and industrial products and appliances that use natural gas as a fuel—have historically been built and maintained to run on natural gas. Any introduction of these other fuels into natural gas infrastructure and end uses will require careful planning and analysis to ensure safe, reliable and affordable integration.
NARUC is interested in the many pilot projects, voluntary tariffs, special contracts and other approaches to hydrogen and RNG being implemented by natural gas utilities in various states. For example, the Align Renewable Natural Gas joint venture between Dominion Energy and Smithfield Foods is capturing methane from hog farms in multiple states, including Virginia, and converting it into RNG. Ideally, information assessing the outcomes from Align RNG and other projects will be widely shared through forums like our NARUC conferences and the U.S. Department of Energy-NARUC Natural Gas Partnership, where regulators across the country exchange lessons learned and promote best practices to advance low-carbon fuels and other strategies to decarbonize the energy sector.
You mentioned energy efficiency. It is an important tool to decrease greenhouse gas emissions. To assure effectiveness, states can use robust cost-benefit analysis tools and cost-effectiveness tests, including evaluation, measurement and verification, to ensure energy efficiency programs are beneficial and costeffective for both participating and nonparticipating customers and the environment.
AG: Prior to your commission work, you were in the office of the attorney general for the Commonwealth of Virginia, including serving as attorney general from 2005 to 2006 and as deputy attorney general for the civil litigation division, a position that included the antitrust and utility consumer counsel divisions. Given your experience, what do consumers want from their utilities, and how can utilities help deliver on these expectations?
JJ: In my experience, consumers want reliable, affordable and safe service. In ever-increasing numbers, consumers are also looking for clean energy. They desire increased transparency and clear communication about utility offerings. They want to be informed about any issue associated with utility service, especially during times of service disruption. When consumers experience an outage or service quality issues, have questions about the bill or want additional information on service offerings, they understandably get frustrated if answers aren’t readily available. Clear communication across multiple platforms won’t resolve every issue, but it will reduce frustrations and help establish reasonable expectations. The same holds true for any business or government agency—including public service commissions.
I also believe that consumers appreciate genuine concern for their safety and well-being, such as the safety resources provided to natural gas customers. NARUC, like AGA, supports the national 811 Call Before You Dig campaign to provide important reminders for customers. In that regard, NARUC’s Committee on Consumers and the Public Interest, led by Maryland Commissioner Obi Linton, is helping to address some of the most critical issues faced by consumers—whether it’s disaster preparedness, understanding how federal programs such as LIHEAP and LIHWAP are managed by the states, or helping regulators and industry appreciate the consumer’s position with the well-received Poverty Simulation, which we hope to do again this year.
AG: You were elected to the Virginia SCC in 2006, and prior to your time in the attorney general’s office, you also served for 13 years as counsel to the SCC and its staff on securities and utility matters. What led you to choose energy and utilities as your field of focus?
JJ: My favorite cousin advises the recently graduated to “[g]o through the door that is open—you may be surprised.” I did not originally plan a career in energy law, but when presented this opportunity, I never let go. After law school, I was employed in the Office of General Counsel at the Virginia State Corporation Commission for securities issues. The office handles all the legal work for the various SCC divisions that regulate not only the utility industry, but insurance, banking and securities as well. One day I assisted with a utility matter and never looked back. One of the benefits of working for the SCC is its varied jurisdiction, covering so many areas of state economic regulation. While for many years my professional focus has been broader than utility matters, I am drawn to this work. It is interesting, varied and relevant to today’s most pressing issues. It is the very best of public service.
AG: Finally, you sometimes teach a course on energy regulation and policy at the University of Virginia School of Law as an adjunct faculty member, along with presenting frequent lectures on utility matters at various forums and conferences. If your term as NARUC president were to be the topic of a lecture, how would it be listed in your syllabus?
JJ: We will need more than one lecture to cover the topics for NARUC’s coming year, so I propose an entire course. Its title is “The Speed, Interplay, Cost and Efficacy of Proposed Change: Working Toward Desired Outcomes.” We will examine NARUC’s many offerings both on the fundamentals of utility regulation and on current and emerging topics. We will examine NARUC’s comments addressing the Federal Energy Regulatory Commission’s recent Advance Notice of Proposed Rulemaking on transmission planning, illustrating that the states are not in lockstep on every utility issue, due in part to varied public policy requirements and to differing operational characteristics and needs of various regions. Yet there is great potential to find common ground on certain issues, especially when regional differences are accommodated.
Specifically, the course will highlight the many excellent foundational resources available to the NARUC community at large. We will also explore emerging issues and technologies from many perspectives, with an emphasis on decarbonization, aging infrastructure, cybersecurity and the interrelation of these topics.