RemarksofPUCOChairmanAsimZ.

Haque

PUCOCommissionmeetingFebruary23,2017

RE:OhioRuralNaturalGas

Iwanttotakejustafewminutestotalkabouttheunfortunatesituationwereaddressingheretoday
involvingOhioRuralNaturalGas,orORNG.

AsthisCommissionidentifiedinourJanuary18decision,wehavemadethedeterminationthatthe
ORNGsystemisnotbeingoperatedinaccordancewithstateandfederalsafetyregulations.

Ourpriorityasaregulatorofnaturalgaspipelinesystemsistoensurepublicsafetybyenforcingstate
andfederalgaspipelinesafetystandards.ORNG,baseduponavoluminousrecorddevelopedinthis
case,doesnotmeetthosestandards;ORNGisnotproperlyrun.

Itwasthereforeincumbentuponus,thesafetyregulators,totakeaction.Again,thelengthyrecordin
thiscaseshowcasesthePUCOsattemptstogetORNGtorunasafesystem.ORNGhasrepeatedlyand
systematicallyignoredthesesafetyviolations.

Ourpriority,again,istoensurepublicsafety.Atthesametime,theCommissionunderstandsthatit
orderedthesystemtobeshutdownbeforetheendofthewinterheatingseason.Whilewewantto
ensuretotalsafetyofOhiosgaspipelinesystems,wedonotwanttocreateasituationwhereOhioans
arewithoutanalternativetoheattheirhomesduringthewinter.Wereceivedthisfeedbackfrom
ORNGscustomers,andtheirconcernsarebeingtakenseriouslybytheCommission.

However,inordertoextendthedeadlineforsystemshutoff,tostrikeabalancebetweensafetyand
havingheatduringthewintermonths,theCommissionneededtofeelcomfortableintheshortterm
viabilityofthesystem.AfterourJanuary18decision,itcametothePUCOsattentionthatORNGs
presidentoftheboardandgeneralmanager,Mr.DarrylKnight,hasleftORNG.Thiswasthesole
individualwhotestifiedinthecaseonbehalfofORNG,andhetestifiedthatsolongashewasatORNG,
hewouldtakegreatpainstoensurethesafetyofthesystem.Andnowhesgone.

Notonlythat,butsinceourJanuary18decision,thePUCOdiscoveredthatORNGwasnotproperly
staffingemergencyresponderstorespondtosafetyconcernscalledinbyORNGscustomers.Thatis,if
yousmelledgas,andcalledORNG,therewasnotacertifiedtechnicianstaffedbyORNGtoassistyou.

OncethePUCOinformedORNGofitsdiscovery,ORNGcompliedwithourrequestandretained
emergencyresponders.ButacustomerofORNGmustaskthemselveswhetherORNGwouldhave
retainedtheseemergencyrespondersifthePUCOhadnotdiscoveredthislapsebyORNGtoprovidethe
mostbasicsystemsafetymeasuretoORNGscustomers.

Tofurtherensuretheshorttermviabilityofthesystem,thePUCOrequested,andORNGperformeda
leaksurveyoftheentiresystemtooursatisfaction.

Andsothebalancewearecreatingheretoday,feelingcomfortablewiththeshorttermviabilityofthe
system,istoextendthedeadlinebywhichORNGmustceaseoperationsuntilApril17toallowits

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Columbus, Ohio 43215-3793 www.PUCO.ohio.gov

An equal opportunity employer and service provider

customersadditionaltimetofindalternativeheatingsources.ThisgetsORNGscustomersthroughthe
winterheatingseason,butalsoaddressesthePUCOslongtermconcernsaboutthesafetyofthe
system.

IfullyunderstandthefrustrationofORNGscustomers,especiallythefeelingthattheyhavewasted
moneybyconvertingtonaturalgasandbecomingORNGcustomers.

ItisimportantfortheORNGcustomerstorecognizethatORNGclaimsitisnotapublicutility,buta
cooperativeinwhichthecustomersownthesystem.Ifyouareupsetaboutthestatusofthesystem,
aboutexpendingmoneyonconvertingtonaturalgasandpossiblyhavingwastedthatinvestment,then
theCommissionencouragesyoutostandupandtakeyourrightfulplaceasanownerofthesystemand
demandthatyou,yourneighbors,yourcommunity,betransferredtoamoreresponsibleutilitysystem
operator.

Makehaste.Donotwastetime.Wehavecreatedthisbalancetodaytoensurethatyougetthroughthe
winterheatingseason.However,onApril17,wehavedirectedtheattorneygeneralsofficetopursue
actiontoshutthissystemdown.

ThePUCOwelcomesanyotherresponsibleutilitysystemoperatorinapositiontooperateasafe
system.

Thankyou.

180 East Broad Street (614) 466-3016

Columbus, Ohio 43215-3793 www.PUCO.ohio.gov