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Your Survival Guy: Out of Gas in Newport (Report Issued)

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By Lopolo @Shutterstock

You may recall that Newport, RI had a natural gas disaster earlier this year leaving 7,455 customers without gas (read: no heat) on the coldest day of winter.

Turns out it was another manmade disaster.

Yesterday, the Rhode Island Division of Public Utilities and Carriers (DPUC) released its report and here are the reasons:

First, demand for natural gas was in excess of contractual limits by the Algonquin interstate pipeline driven by sudden low temps.

I would think this one could have been avoided. It gets cold, real cold in Rhode Island during the winter. There will be an increase in demand for gas again in the future in January.

Second, Narragansett Electric operates an uninterruptible power system at the LNG storage and vaporization facility in Providence. This system failed, shuttling down vaporizers which caused a sudden and very large increase in demand for gas from the Algonquin pipeline into the Providence area.

What’s incredible is Narragansett Electric did not inform DPUC of the failure of the vaporizers in Providence until 39 days after the event and did not conduct an appropriate after-action review following the gas outage.

Third, there was a valve misfunction on The Algonquin pipeline at a meter station in Weymouth, MA, operated by Enbridge. The malfunction was from a programming error made in September of 2018 that caused the valve to continuously open and close, rather than remain open to allow more gas to flow.

Does anyone see a problem here? How hard would it be for this to happen again? And wouldn’t someone seeking to do harm find a way to hack this program?

You can read more about the experience here.

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E.J. Smith - Your Survival Guy

Preparing your investments and family for when disaster strikes.
E.J. Smith is the Founder of YourSurvivalGuy.com, Managing Director at Richard C. Young & Co., Ltd., a Managing Editor of Richardcyoung.com, and Editor-in-Chief of Youngresearch.com. E.J. graduated from Babson College in Wellesley, Massachusetts, with a B.S. in finance and investments. In 1995, E.J. began his investment career at Fidelity Investments in Boston before joining Richard C. Young & Co., Ltd. in 1998. E.J. has trained at Sig Sauer Academy in Epping, NH, where he completed course-work in Practical and Defensive Handgun, Conceal Carry Pistol, Shotguns, Precision Scope Rifle and Kidnapping Prevention. E.J. plays a Yamaha Recording Custom drum set with Zilldjian cymbals. His first drum set was a 5-piece Slingerland with Zilldjians. He grew-up worshiping Neil Peart of the band Rush, and loves the song Tom Sawyer—the name of his family’s boat, a Grady-White Canyon 306. He grew up in Mattapoisett, MA, an idyllic small town on the water near Cape Cod. He spends time in Newport, RI and Bartlett, NH—both as far away from Wall Street as one could mentally get. The Newport office is on a quiet, tree lined street not far from the harbor and the log cabin in Bartlett, NH, the “Live Free or Die” state, sits on the edge of the White Mountain National Forest. He enjoys spending time in Key West and Paris. Please get in touch with E.J. at ejsmith@youngresearch.com. Sign up here to receive all the best content from Richardcyoung.com each week.

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