CANONSBURG, Pa., April 24, 2020 /PRNewswire/ -- Columbia Gas
of Pennsylvania, Inc., a
subsidiary of NiSource Inc. (NYSE: NI), filed a request today with
the Pennsylvania Public Utility Commission (PA PUC) to approve
revised rates for further upgrading and replacement of the
company's underground natural gas distribution pipelines. If
approved, these proposed rate adjustments would not go into effect
until 2021.
Columbia Gas is committed to upgrading aging infrastructure and
replaces an average of 115 miles of pipeline every year. As part of
its long-term plan to modernize and expand its natural gas
distribution system, Columbia Gas has invested more than
$2.2 billion in Pennsylvania over the past decade and plans to
continue to invest in infrastructure replacement for the safety of
its communities. Economic development of the 26-county area that
Columbia Gas serves benefits greatly from this investment.
This filing is the first rate revision request by Columbia Gas
in over two years.
Response to COVID-19
With the communities we serve in mind and in response to
COVID-19, Columbia Gas has suspended shutoffs for nonpayment for
residential and commercial customers. That suspension will remain
in effect until further notice. Columbia Gas offers a wide array of
customer assistance and energy efficiency programs that provide
resources and tools for customers to save money and energy.
"We want to assist our customers during the COVID-19 pandemic,"
said Columbia Gas President and Chief Operating Officer
Mike Huwar, "With that in mind, we
are offering our most flexible payment plans to customers who have
been impacted or are experiencing hardship as a result of COVID-19,
and we are suspending late payment charges until at least
June 1."
At all times, Columbia Gas is committed to providing our
low-income customers with the tools, resources, and programs to
stay safe and warm in their homes. These programs help customers
mitigate the impact of a rate adjustment or financial changes due
to economic conditions.
Customer Assistance Initiative
In order to assist Columbia Gas's residential customers who are
experiencing a loss of income due to the pandemic, but are not
eligible to participate in the company's existing assistance
programs, Columbia Gas is seeking to implement a temporary program
that will provide grants to customers in need. To achieve this,
Columbia Gas has filed a petition with the PA PUC requesting
authority to use a portion of pipeline penalty credits and refunds
that the PA PUC has previously approved for hardship funds, matched
by a contribution from the NiSource Charitable Foundation, to fund
the grants.
Review Process by PA PUC
Columbia Gas made its decision to file a request for a rate
adjustment nearly one year ago, and the company notified the PA PUC
in February of its intent to file such a request. While the company
filed its request with the PA PUC today, April 24, 2020, it is important to note that
after filing for a rate adjustment, the review process by the PA
PUC will take approximately nine months. As a result, in this case,
any approved and adjusted rates by the PA PUC would not go into
effect until 2021.
In today's filing, Columbia Gas is seeking an annual revenue
increase of approximately $100.4
million. Approval of the proposal would result in the
average total bill for a residential customer who purchases 70
therms of gas per month from Columbia Gas to increase from
$87.57 to $103.19 per month, or by 17.84 percent. The total
bill for a small commercial customer purchasing 158 therms of gas
from Columbia Gas per month would increase from $145.15 to $167.77,
or by 15.58 percent. Rates for a small industrial customer
purchasing 1,328 therms of gas from Columbia Gas per month would
increase from $999.04 to $1,124.93 per month, or by 13.17 percent.
If the request is approved as filed, the total average
residential customer bill in 2021 would still be more than 28
percent lower than it was in 2010, when adjusted for inflation.
How Customers Can Participate in the Rate Review
Process
It is important to note that the rate review process is very
public. Anyone interested in the case can participate by reaching
out to the PUC, and we encourage active involvement by our
customers and any interested parties. Customers can participate in
the rate review process in multiple ways, including through written
comments, attendance at public hearings, and various consumer
advocacy organizations that participate in the proceedings.
Customers with questions regarding the proposed rates may call
Columbia Gas at 1-888-460-4332 or visit
www.ColumbiaGasPA.com for more information.
"Our nearly 800 fulltime employees and 1,500 contractors are
proud of our pipeline replacement program and our ability to
continue to serve our valued customers safely and reliably," said Huwar. "We also remain
committed to providing a positive customer experience through an
educated and trained workforce that is focused on safely meeting or
exceeding all federal and state requirements while operating,
upgrading and expanding our distribution system."
About Columbia Gas of Pennsylvania
Columbia Gas of Pennsylvania
delivers clean, affordable, and efficient natural gas to
approximately 433,000 customers. With headquarters in Canonsburg, Pennsylvania, it is one of
NiSource's seven regulated utility companies. NiSource (NYSE: NI)
is one of the largest fully-regulated utility companies in
the United States, serving
approximately 3.5 million natural gas customers and 500,000
electric customers through its local Columbia Gas and NIPSCO
brands. More information about Columbia Gas of Pennsylvania and NiSource is available at
www.ColumbiaGasPA.com and
www.nisource.com.
About NiSource
NiSource Inc. (NYSE: NI) is one of the largest
fully-regulated utility companies in the
United States, serving approximately 3.5 million natural gas
customers and 500,000 electric customers across seven states
through its local Columbia Gas and NIPSCO brands. Based in
Merrillville, Indiana, NiSource's
approximately 8,400 employees are focused on safely delivering
reliable and affordable energy to our customers and communities we
serve. NiSource is a member of the Dow Jones Sustainability - North
America Index and the Bloomberg Gender Equality Index and has been
named by Forbes magazine among America's Best Large Employers since
2016. Additional information about NiSource, its investments in
modern infrastructure and systems, its commitments and its local
brands can be found at www.nisource.com. Follow us at
www.facebook.com/nisource,
www.linkedin.com/company/nisource or
www.twitter.com/nisourceinc. NI-F
Forward-Looking Statements
This press release contains "forward-looking statements"
within the meaning of federal securities laws. Investors and
prospective investors should understand that many factors govern
whether any forward-looking statement contained herein will be or
can be realized. Any one of those factors could cause actual
results to differ materially from those projected. Examples of
forward-looking statements in this press release include, but are
not limited to, statements and expectations regarding NiSource's or
any of its subsidiaries' plans, strategies, objectives, expected
performance, expenditures, recovery of expenditures through rates,
stated on either a consolidated or segment basis, and any and all
underlying assumptions and other statements that are other than
statements of historical fact. All forward-looking statements are
based on assumptions that management believes to be reasonable;
however, there can be no assurance that actual results will not
differ materially. Factors that could cause actual results to
differ materially from the projections, forecasts, estimates, and
expectations discussed in this press release include, among other
things, the ongoing impact of the coronavirus (COVID-19) pandemic;
NiSource's debt obligations; any changes in NiSource's credit
rating or the credit rating of certain of NiSource's subsidiaries;
NiSource's ability to execute its growth strategy; changes in
general economic, capital and commodity market conditions; pension
funding obligations; economic regulation and the impact of
regulatory rate reviews; NiSource's ability to obtain expected
financial or regulatory outcomes; NiSource's ability to adapt to,
and manage costs related to, advances in technology; any changes in
our assumptions regarding the financial implications of the Greater
Lawrence Incident; compliance with the agreements entered into with
the U.S. Attorney's Office for the District of Massachusetts to settle the U.S. Attorney's
Office investigation relating to the Greater Lawrence Incident; the
pending sale of the Columbia Gas of Massachusetts business, including the terms
and closing conditions under the asset purchase agreement;
potential incidents and other operating risks associated with our
business; our ability to obtain sufficient insurance coverage; the
outcome of legal and regulatory proceedings, investigations,
incidents, claims and litigation; any damage to NiSource's
reputation, including in connection with the Greater Lawrence
Incident; compliance with environmental laws and the costs of
associated liabilities; fluctuations in demand from residential and
commercial customers; economic conditions of certain industries;
the success of NIPSCO's electric generation strategy; the price of
energy commodities and related transportation costs; the
reliability of customers and suppliers to fulfill their payment and
contractual obligations; potential impairments of goodwill or
definite-lived intangible assets; changes in taxation and
accounting principles; the impact of an aging infrastructure; the
impact of climate change; potential cyber-attacks; construction
risks and natural gas costs and supply risks; extreme weather
conditions; the attraction and retention of a qualified work force;
the ability of NiSource's subsidiaries to generate cash; NiSource's
ability to manage new initiatives and organizational changes; the
performance of third-party suppliers and service providers; changes
in the method for determining LIBOR and the potential replacement
of the LIBOR benchmark interest rate; and other matters set forth
in Item 1A, "Risk Factors" section of NiSource's Annual Report on
Form 10-K for the fiscal year ended December
31, 2019 and in our Current Report on Form 8-K filed on
April 8, 2020. A credit rating is not
a recommendation to buy, sell or hold securities, and may be
subject to revision or withdrawal at any time by the assigning
rating organization. In addition, dividends are subject to board
approval. All forward-looking statements are expressly qualified in
their entirety by the foregoing cautionary statements. NiSource
expressly disclaims any duty to update, supplement or amend any of
its forward-looking statements contained in this press release,
whether as a result of new information, subsequent events or
otherwise, except as required by applicable law.
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SOURCE Columbia Gas of Pennsylvania, Inc.