Columbia Gas of Pennsylvania Files to Recover Investment in Replacing and Upgrading Aging Infrastructure

Columbia Gas of Pennsylvania, Inc., a subsidiary of NiSource Inc., filed a request today with the Pennsylvania Public Utility Commission (PUC) to adjust its base rates for distribution service so it can continue to upgrade and replace the company’s underground natural gas distribution pipelines.

“Our number one priority is maintaining the safety of our customers and the communities we serve,” said Michael Huwar, president of Columbia Gas of Pennsylvania. “We have made, and will continue to make, substantial capital investments in our system to enhance the safe and reliable system that we currently operate. We believe this filing provides a number of tangible benefits to our customers.”

From 2007-2017, the company invested more than $1.6 billion to modernize and expand its distribution system in Pennsylvania. Of that amount, approximately $1.2 billion was dedicated to replacing more than 922 miles of priority pipe. In 2018 alone, Columbia Gas of Pennsylvania plans to invest $274 million in Pennsylvania, with more than $215 million dedicated to upgrading aging underground infrastructure throughout the 26 Pennsylvania counties where it provides natural gas service.

The filing, if approved by the PUC, would not only provide the company with an opportunity to earn a fair return on its infrastructure capital investments, but also enhance pipeline safety through a number of initiatives. Columbia Gas of Pennsylvania is seeking an annual revenue increase of approximately $46.9 million.

The process for a general rate proceeding can take up to nine months and the company expects that new rates would be effective at the end of 2018.