Press Release

PUC Approves Columbia Gas of PA Plans for Long-Term Infrastructure Improvements and Distribution System Improvement Charge

Published on 3/14/2013

Filed under: Gas

HARRISBURG – The Pennsylvania Public Utility Commission today approved the petitions of Columbia Gas of Pennsylvania (Columbia Gas) to begin implementation of its long-term infrastructure improvement plan in addition to its distribution system improvement charge (DSIC).

The Commission voted 5-0 to approve the plans, which were filed as part of Act 11 of 2012. 

The law required and provides for, among other things, utilities to file the plans as part of any action to establish a distribution system improvement charge (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.  Columbia Gas 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 at least 500,000 feet of pipe per year.

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.

Columbia Gas provides natural gas service to approximately 415,000 customers in 26 counties in Pennsylvania.

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 and audio of select Commission proceedings or more information about the PUC, visit our website at www.puc.pa.gov.

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Docket Number P-2012-2338282

Contact:

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