THE ENERGY INDUSTRY
IN CHARTS
Gross Margin per $M Gas Plant In-Service
- As mentioned elsewhere in this Spring 2023 Energy Industry Update, the business and regulatory environment for gas local distribution companies (LDCs) is changing.
- However, gas LDCs continue to focus on infrastructure improvements, leak reduction, and profitability.
- In this section, we use our proprietary Gas LDC Peer Analytics product to show some high-level regional comparisons on a few metrics that reflect those focus areas.
- Utility names have been redacted for simplicity of illustration. In analyses for clients using the Peer Analytics tool, ScottMadden typically shows more detail about panels reviewed.
Figure 7.1A: Gross Margin per $M Gas Plant In-Service (3-Year Average 2019-21)
Notes: Northeast includes CT, MA, ME, NH, RI, and VT. Southeast includes AL, AR, FL, GA, MS, NC, SC, TN, VA, and WV.
Sources: Federal, state filings; S&P Capital IQ; ScottMadden LDC Peer Analytics product
- As shown in the Figure 7.1B, excluding one outlier in the Northeast, gas LDCs in the Northeast at median are $10,000 greater per $ million of gas plant in service than those in the Southeast.
Figure 7.1B: Gross Margin per $M Gas Plant In-Service (3-Year Average 2019-21)
Notes: Northeast includes CT, MA, ME, NH, RI, and VT. Southeast includes AL, AR, FL, GA, MS, NC, SC, TN, VA, and WV.
Sources: Federal, state filings; S&P Capital IQ; ScottMadden LDC Peer Analytics product
Percentage of Cast Iron Mains In-Service
The percentage of cast iron mains varies sharply across different regions in the United States.
- 85% of gas LDCs (56 of 66) in the Midwest have replaced all cast iron mains on their systems vs. only 32% in the Northeast.
- Those gas LDCs with cast iron mains still in service in both regions are replacing them at 1%-2% per year.
Figures 7.2A-B: Percentage of Cast Iron Mains In-Service (3-Year Average 2019-21)
Notes: Northeast includes CT, MA, ME, NH, RI, and VT. Midwest includes IA, IL, IN, KS, KY, MI, MN, MO, NE, OH, SD, and WI.
Sources: Federal, state filings; S&P Capital IQ; ScottMadden LDC Peer Analytics product
Percentage Lost or Unaccounted For Gas
The percentage of lost or unaccounted for gas varies across different regions in the United States.
- In the West, the median value is 0.7%, and most utilities experienced an increase over the past three years.
- In the Southeast, the median value is 1.0%, and roughly the same number of gas LDCs experienced a decrease as experienced an increase over the past three years.
- The values range from -1.0% to 2.9% in the West, and the values range from -5.4% to 6.2% in 2021.
Figures 7.3A-B: Percentage Lost or Unaccounted for Gas (3-Year Average 2019-21)
Notes: West includes AK, AZ, CA, ID, MT, NV, OR, WA, and WY. Southeast includes AL, AR, FL, GA, MS, NC, SC, TN, VA, and WV. Negative values may reflect measurement inaccuracies.
Sources: Federal, state filings; S&P Capital IQ; ScottMadden LDC Peer Analytics product