3 min read January 2023 — Invest: spoke with Michael Huwar, president of Peoples Gas in Pittsburgh, about the company’s focus on safety and reliability and its efforts to reduce leakage and emissions. “The primary focus of our business is the safe and reliable delivery of natural gas. We do it in a way that is environmentally responsible for the communities that we serve,” he said.
What have been some highlights or milestones for Peoples Gas over the last 12 months?
The primary focus of our business is the safe and reliable delivery of natural gas. We do it in a way that is environmentally responsible for the communities that we serve. In 2022, we had a great story to tell because we continued to reduce our emissions and improve our operational performance. We have a big focus on driving down leakage, reducing our emergency response times, and taking steps to enhance our diversity hiring efforts. We continue to improve in all those areas. When you put those things together, it exemplifies Peoples’ commitment to safety, reliability, the environment and our communities.
What opportunities or challenges do you see in the region?
Our strengths and opportunities are one and the same. While we are a company that is 135 years old, with a strong connection to the communities we serve, we’re also looking to the future with innovative technologies and practices. Like other sectors in our country focused on modernization, we see opportunities in repairing and replacing gas infrastructure, which will provide energy security and environmental benefits. We are taking the time to improve our safety and reliability and to reduce our environmental footprint, which will benefit generations to come.
What strategies are you using to recruit talent?
We have engaged in partnerships across the region to collaborate with people and organizations that do this well. We want to leverage good talent so we can represent the communities that we serve. We want our employees to reflect those communities, so we look for opportunities to get the best and brightest talent that reflect the local demographics.
What partnerships are you looking to leverage for research?
At Peoples, we understand the importance of innovative partnerships as we focus on reducing the environmental footprint of the company. One of the ways that we are addressing this is low-carbon or zero-carbon fuel. We’re currently partnering with experts at the University of Pittsburgh’s Swanson School of Engineering to evaluate the potential of transporting a blend of natural gas and hydrogen through our existing system. We operate over 15,000 miles of pipeline that we need to run safely. We’re looking at data to determine the impact of hydrogen, so we can ensure that everything is safe while we reduce carbon emissions and remain reliable for our customers.
How are you leveraging innovation in your business?
The potential use of hydrogen is one innovation that could move the business forward. We also see innovation in how our customers use natural gas. Customers have an on-site generation of electricity, such as at Pittsburgh International Airport and at hospitals in the region. The market is continuing to grow for highly efficient combined heat and power systems fueled by natural gas. We are also seeing the evolution of fuel cells at the residential level to produce clean electricity for the end user. This could be a big game changer for our business because it takes advantage of our infrastructure to allow safe and reliable gas and power generation for decades to come.
What steps are you taking to reduce emissions?
Our long-term capital infrastructure replacement plan is key to the growth of the business as well as the reduction of emissions. On an annual basis, Peoples Gas will replace about 300 miles of pipeline. That effort continues to go extremely well through our partnerships with our contractor network, supply chain and our organized labor force. By 2034, we will have achieved a 60% reduction in emissions primarily through the elimination of methane leakage in our current system.
Are there any legislative actions that you are watching that will impact the gas industry?
The gas industry supported a bill in Pennsylvania focused on customer choice. We believe customers should be able to select their energy source. The bill made its way through the House and Senate in Pennsylvania but it was vetoed by the governor. We are hoping a new administration will renew the focus on this bill. We are keenly focused on our environmental footprint but we are also looking to cap and plug wells, including in some of our storage fields. Peoples believes this will become a key effort of the new administration in 2023 and beyond.
What is your outlook for the next two to three years?
We are extremely bullish on natural gas in this region. We present a unique proposition to our customer base because of our resources and location, with access to plentiful natural gas. We provide low-cost energy to our current consumers and we want to help attract new business to this region to support our economic growth. As we think about 2023, and moving forward, a lot of our work will remain the same, safely and reliably delivering natural gas to our customers, while focusing on innovation, the environment, and workforce development. The Pittsburgh Region has the advantage of vast natural resources that provide opportunity for communities and employers. At Peoples, we are working every day to make life better in our region.
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