New Jersey Natural Gas Co. Mr. Downes is also a member of the AGA Board of Directors. Mr. Downes addressed the U.S. Senate Committee on Energy and Natural Resources, whose hearing today focused on the current outlook for the supply of home-heating and transportation fuels this winter. Natural gas utilities have an excellent reputation for reliability and this winter should be no different, said Mr. Downes.
Utilities assure reliable service in three main ways.
First, we contract for firm pipeline capacity. In other words, we reserve space on the interstate pipelines that transport gas from the producing areas. Second, we sign firm supply contracts with producers and marketers of natural gas. These agreements contain severe penalties designed to ensure compliance. He continued, Natural gas utilities often own storage facilities in or near their market area typically in underground reservoirs.