Press Release

PUC Approves Updated Plans to Accelerate Replacement of Aging Natural Gas Pipelines in Philadelphia

Published on 6/9/2016

Filed under: Gas

 HARRISBURG – The Pennsylvania Public Utility Commission (PUC) today approved a modified infrastructure improvement plan, along with a one-time adjustment to a related customer charge, intended to dramatically accelerate the replacement of aging natural gas pipelines in Philadelphia.

The Commission voted 4-0 to approve a Long-Term Infrastructure Improvement Plan submitted by the Philadelphia Gas Works (PGW), which outlines an additional $11 million in pipeline replacement spending per year – targeted at PGW’s aging cast iron mains. Those added funds are expected to accelerate the timeline for replacement of “at risk” pipelines by nearly 40 years.

As noted in a 2015 PUC staff report, PGW has the highest percentage of at-risk pipe of any regulated gas company in Pennsylvania – by at least a factor of two. In that report, the PUC report identified numerous mechanisms to increase the pace of pipeline replacement in Philadelphia.

Also today, the Commission voted 4-0 to approve a PGW request related to the Distribution System Improvement Charge (DSIC), which is being used to fund the expanded pipeline replacement – addressing a one-time $11.4 million under collection of the DSIC during 2015 which could have impacted the tempo of future pipeline replacement efforts.

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 and 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” Pennsylvania Public Utility Commission on Facebook for easy access to information on utility issues. 

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Docket No.:   P-2012-2337737
                        P-2015-2501500

Contact:

• Nils Hagen-Frederiksen
  Press Secretary
  717-418-2701
  nhagen-fre@pa.gov