RecoverIR™ Blog

In early 2009, one large utility commissioned Stockton Infrared Themography Services, Inc. (now a Joint Venture Partner in RecoverIR, Inc.) to perform a fully integrated, high resolution aerial infrared survey and analysis of a very large urban survey area to identify households which could be stealing natural gas and/or electricity.

Before the aerial infrared survey, the utility thought they 5% of the households might be stealing natural gas, but they soon discovered that almost 20% of the households in the a ver large survey area were natural gas thieves. The results of the survey also revealed that 80% of the households stealing natural gas were also stealing electricity.

Natural gas utilities have two primary categories of residential thieves:

1. Households stealing natural gas without paying any bills, and
2. Households underpaying their bills because they are bypassing the installed meters and paying for a portion of the gas they are using.

Once utilities have clearly identified the distribution and quantity of theft, they can more accurately to identify the magnitude and probable locations of energy losses within their supply and distribution systems.

So why should natural gas local distribution companies (LDC’s) care about indentifying theft?

Lost revenue, desire to reduce consumer billing rates, community responsibility, more accurate information baselines for LDC rate cases to state public utility commissions (PUC’s), public safety, liability, excess emissions of greenhouse gases (read EPA and global warming concerns), and additional scrutiny by the National Transportation Safety Board (NTSB) grouped together in various ways could motivate LDC’s to identify and shutoff gas thieves.

Lost Revenue – Utilities and the independent gas suppliers are losing revenue.

PUC’s – State PUC’s regulate allowable rates of LDC’s in different ways, and bill paying customers are always adversely impacted by higher rates of stolen natural gas. More stolen gas, higher utility bills.

In Pittsburgh, the PUC fined the Dominion Peoples Gas $175,000 after two different home gas explosions. Other utilities might be mindful of possible PUC fines.

NTSB - A leaking gas pipe or leaking underground pipe is harmless to the community – right? (Please click here for more information about an NTSB inspection of an exploded house with gas detected in the dirt after the explosion).

Fuel Oil Heated Homes Don’t Steal Natural Gas! – Read about a fuel oil heated home in Boston that was completely destroyed from an unexplained natural gas explosion on this blog in the article “An Overlooked Way for Cities to Reduce City Budgets in Today’s Difficult Tax Revenue Climate”.

Only poor people steal natural gas! – There are many recorded incidents of wealthy homeowners and apartment landlords stealing gas for years through a variety of schemes including installation of bypasses and other approaches. Many of these thefts have and are being pursued in state courts.

Gas thieves are not covered by any Low Income Home Energy Assistance Program (LIHEAP). Gas thieves can be cut off immediately and in some states they will be required to repay the LDC for all stolen gas before their service can be restored and this can cost them $1,000’s and legal fees.

If the home owner or renter has applied for low income home energy assistance, then they would not be categorized as a thief, the gas LDC would have them on their billing records, and they would have their gas shutoff in the winter, and they would have had an eligible household income which did not exceed the greater of 150 percent of the poverty level or 60 percent of the State median income. All fifty States, the District of Columbia, five territories, and about 140 Tribes and Tribal organizations receive LIHEAP grants each year. State and federally recognized Tribes (including Alaska native villages) may apply for direct LIHEAP funding.

There are many recorded incidents of wealthy homeowners and apartment landlords stealing gas for years through a variety of schemes including installation of bypasses and other approaches. Many of these thefts have and are being pursued in state courts.

No utility can be 100% confident they are identifying all of the thieves in their area, unless they use more advanced aerial infrared capabilities and powerful analyses to look.

Would you be willing to bet your next paycheck that your local LDC is finding the majority of natural gas and electric thieves in their serviced areas?