CLEVELAND, Sept. 14, 2016 /PRNewswire/ -- The Public
Utilities Commission of Ohio
(PUCO) voted today to authorize Dominion East Ohio to continue its
Pipeline Infrastructure Replacement (PIR) program and recover the
associated costs for another five-year period, which runs through
2021.
The PUCO also approved an increase in annual PIR spending from
the current $160 million to $180
million in 2017, $200 million
in 2018 and increasing 3% per year thereafter, and to recover the
associated cost from customers through the PIR Cost Recovery
Charge.
Dominion launched its $4 billion,
25-year PIR program in mid-2008. The program involves the
eventual replacement of over 5,500 miles of the company's
22,000-mile pipeline system. Most of the pipeline to be
replaced was installed in the first half of the 1900s.
"The PUCO's decision continues to position Ohio at the forefront of supporting pipeline
safety through replacement of older vintage pipelines," said
Jeff Murphy, Dominion East
Ohio vice president and general manager.
The current PIR Cost Recovery Charge paid by residential
customers is $8.12 per month. Under a
prior, PUCO-approved agreement, Dominion was able to increase its
monthly charge for the program by up to $1.40 each year. The monthly charge could
increase by as much as $1.75 in early
2018 and by $1.82 in early 2019,
based on program costs in the prior year. The passage of
certain tax law changes are likely to reduce the actual increases
included in customer
bills.
The PUCO reviews Dominion's expenditures every year to ensure
that the PIR Cost Recovery Charge accurately reflects actual
expenditures in the program. That charge is reduced by any
cost savings that Dominion achieves as it replaces older pipelines.
Through 2015, Dominion East Ohio has passed savings totaling over
$10.2 million back to customers.
The approved increase in annual PIR spending is necessary to
help ensure completion of the program in the originally approved
25-year time frame, in light of increased construction and related
costs experienced to date. Those costs have increased as more of
the pipeline work is performed in higher cost urban areas and
environmental protections have expanded.
"We're very grateful that the PUCO recognized the importance of
increasing program expenditures to help ensure the continued safe
and reliable operation of our pipeline system for our over 1
million customers," Murphy concluded. "Their input and
oversight have resulted in a very cost effective program that holds
Dominion fully accountable for its expenditures."
About Dominion
Dominion (NYSE: D) is one of the nation's largest producers
and transporters of energy, with a portfolio of approximately
25,700 megawatts of generation, 12,200 miles of natural gas
transmission, gathering and storage pipeline, and 6,500 miles of
electric transmission lines. Dominion operates one of the
nation's largest natural gas storage systems with 933 billion cubic
feet of storage capacity and serves more than 5 million utility and
retail energy customers in 14 states. For more information about
Dominion, visit the company's website at www.dom.com.
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SOURCE Dominion East Ohio