Press Release

PUC Approves Philadelphia Gas Works Plans for Long-Term Infrastructure Improvements

Published on 4/4/2013

Filed under: Gas

HARRISBURG – The Pennsylvania Public Utility Commission (PUC) today approved the petition of Philadelphia Gas Works (PGW) to begin implementation of its long-term infrastructure improvement plan (LTIIP) following the approval of a distribution system improvement charge (DSIC) tariff to fund the infrastructure improvements. 

The Commission voted 5-0 to approve PGW’s long-term infrastructure improvement plan, which was filed as part of Act 11 of 2012.  The Commission also approved in part and denied in part, the use of a DSIC, and has asked the company to file a revised proposed DSIC tariff to make the tariff filing more consistent with requirements addressed in Act 11.

The law required and provides for, among other things, utilities to file LTIIPs as part of any action to establish a DSIC to recover reasonable and prudent costs incurred to repair, improve or replace certain eligible distribution property that is part of a utility’s distribution system.  PGW plans to accelerate infrastructure replacement over a period of five years.  The plan accelerates spending on the repair and replacement of aging facilities.   The company intends to replace approximately 125.78 miles of pipeline during the next five years.

As of Jan. 1, 2013, public utilities could petition the Commission for approval to establish a DSIC. The petition must contain the following elements: 1) initial tariff; 2) testimony and exhibits to demonstrate that the DSIC will ensure the provision of adequate, efficient, safe, reliable and reasonable service; 3) long-term infrastructure plan; 4) certification that a base rate case has been filed within the past five years; and 5) any other information required by the Commission.  The petition must demonstrate that granting the petition and allowing the DSIC to be charged will accelerate the replacement of infrastructure.

PGW provides natural gas service to approximately 500,000 customers in the City of Philadelphia.

On Feb. 14, 2012, Governor Corbett signed Act 11 of 2012, which allows jurisdictional water and wastewater utilities, natural gas distribution companies, city natural gas distribution operations, and electric distribution companies to petition the Commission for approval to implement a DSIC. Under the law, the DSIC must be designed to provide for "the timely recovery of the reasonable and prudent costs incurred to repair, improve or replace eligible property in order to ensure and maintain adequate, efficient, safe, reliable and reasonable service.”

The Pennsylvania Public Utility Commission balances the needs of consumers and utilities; ensures safe and reliable utility service at reasonable rates; protects the public interest; educates consumers to make independent and informed utility choices; furthers economic development; and fosters new technologies and competitive markets in an environmentally sound manner. 

For recent news releases, video of select Commission proceedings or more information about the PUC, visit our website at www.puc.pa.gov.  Follow the PUC on Twitter – @PA_PUC for all things utility.  “Like” PAPowerSwitch on Facebook for easy access to information on electric shopping.

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Docket Number P-2012-2337737

Contact:

• Denise McCracken
  Senior Communications Specialist
  717-787-5722
  demccracken@pa.gov