SOCALGAS PUSHES GAS FUELED VEHICLE USE

Southern California Gas Co., Los Angeles, has asked California regulators to authorize the state's largest program to increase the use of natural gas fueled vehicles in its service area. Its program calls for installation of 51 gas fueling stations by the end of 1 993 in an effort to spur private enterprise to develop a far larger network of stations. The goal is to dramatically reduce smog in southern California by the end of the decade.
July 8, 1991
3 min read

Southern California Gas Co., Los Angeles, has asked California regulators to authorize the state's largest program to increase the use of natural gas fueled vehicles in its service area.

Its program calls for installation of 51 gas fueling stations by the end of 1 993 in an effort to spur private enterprise to develop a far larger network of stations.

The goal is to dramatically reduce smog in southern California by the end of the decade.

"We envision 80,000 natural gas vehicles on the road, supported by a network of 1,300 fueling stations by 2000," said Roy Rawlings, SoCalGas vice-president of marketing.

"But to get there, a program such as ours is needed to kick-start the market for such vehicles."

The gas company estimates that 70,000 tons/year of pollutants could be eliminated if the natural gas vehicle market reaches its potential.

"The technology for natural gas vehicles is here and is being used," Rawlings said. "But first we must develop the infrastructure to support the vehicles."

The gas company program is aimed at the 600,000 buses, vans, trucks, and other fleet vehicles that operate in southern California. These vehicles drive the most miles, many of them burning diesel fuel.

In addition to providing fueling stations, the gas company program would encourage the purchase of natural gas vehicles by assisting fleet owners with the extra costs associated with the first production models. As a further incentive, the gas company would price its fuel at less than 80/gal of gasoline equivalent.

WHAT IT WILL COST

To fund the $18 million program, SoCalGas plans to use $5 million previously authorized by the California Public Utilities Commission for capital projects. For the balance, the utility will seek authorization for $7.7 million in added revenue in 1992 and a smaller sum, $5.4 million, in 1993.

The increase would raise the average residential rate about 5/month. Longer term, however, the program could reduce rates by 10 times that amount, SoCalGas said.

"With additional uses for natural gas, and thus more customers, we'd have a broader customer base over which to spread our fixed costs," Rawlings said. "This would lower gas rates for everyone."

Rawlings cited "substantial progress" in reducing emissions from southern California industry sources during the past 20 years. But, he said, additional reductions from these sources will be relatively small and very costly,

"The next major reductions will have to come from motor vehicles, and natural gas can play a major role."

SoCalGas quoted figures showing there are 700,000 natural gas vehicles worldwide, including 30,000 in the U. S.

The company expects use of natural gas vehicles to increase substantially in the 1990s as automakers begin mass production of vehicles optimally designed for natural gas.

One such vehicle is scheduled for roll-out early in 1992, when General Motors makes its Sierra pickup truck available to burn natural gas. In addition, natural gas school buses, transit buses, and delivery trucks are beginning to be made available.

Copyright 1991 Oil & Gas Journal. All Rights Reserved.

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