Washington Gas Files Next Phase of Accelerated Infrastructure Replacement Plan in District of Columbia to Enhance Safety and Reliability
Five-year proposal will continue benefits of PROJECTpipes
program, drive ongoing system safety, dependability and affordability,
lower impact on environment, and improve service
As part of an ongoing dedication to deliver safe, reliable and
affordable natural gas service to its customers, Washington Gas today
submitted the next phase of PROJECTpipes, its 40-year
accelerated infrastructure replacement program in Washington, D.C., to
the Public Service Commission of the District of Columbia (PSC). The
filing’s proposed next steps are designed to continue to enhance safety,
improve system reliability and deliver environmental benefits on the
company’s distribution system that serves homes and businesses
throughout Washington, D.C. using natural gas as a clean-burning energy
source.
The broader PROJECTpipes initiative, approved by
the PSC in 2014, is a comprehensive accelerated pipeline replacement
program which has allowed Washington Gas, during the first phase, which
ends in September 2019, to replace aging infrastructure across the
District of Columbia over the last four years and recover associated
costs through a PSC-approved billing surcharge.
As of September 30, 2018, the initial four years of Phase 1 of PROJECTpipes
has been implemented at a total cost of $78.1 million, with
approximately $110 million total investment expected by September 30,
2019. For 2018, the amount of PROJECTpipes surcharge for
an average residential heating customer was approximately $25 annually,
or $2.08 per month.
PROJECTpipes Phase 2 spans the next five years and
enables Washington Gas to continue to proactively replace its aging
natural gas distribution pipeline on an accelerated basis, while
recovering associated costs through a surcharge billing mechanism
previously approved by the PSC. The PSC will consider Phase 2 through a
detailed public proceeding that will enable the community to comment and
provide input on the plan.
“Safety has been at the center of everything we do at Washington Gas
since our founding 170 years ago. PROJECTpipes continues
our mission to provide safe and reliable gas service to our customers by
improving our infrastructure,” said Adrian Chapman, President and Chief
Executive Officer of Washington Gas. “Like all older metropolitan
systems across the country, our pipeline system in Washington, D.C. is
aging. This next phase of PROJECTpipes will expedite the
replacement of older pipeline so we can continue to deliver affordable
gas service in the years ahead.”
Since June 2014, highlights of PROJECTpipes include the
replacement of approximately 13 miles of pipe and 3,000 service lines.
In addition, Washington Gas reduced greenhouse gas released from its
distribution system by an estimated cumulative reduction total of 5,674
metric tons of carbon dioxide equivalent emissions.
PROJECTpipes Phase 2 proposes to replace approximately 22
miles of pipe and 8,274 service lines from October 1, 2019 to December
31, 2024. If approved by the PSC, Washington Gas will spend
approximately $305.3 million over five years. For 2019, the amount of PROJECTpipes
Phase 2 surcharge for an average residential heating customer is
projected to be approximately $49 annually, or $4.08 per month.
Washington Gas will prioritize the selection and timing of replacing
certain types of facilities within specific categories, based on their
relative risk, construction efficiencies, and other factors using proven
pipeline integrity evaluation and risk assessment tools.
“PROJECTpipes will modernize our infrastructure, making it
safer and more reliable while meeting or exceeding high federal and
local safety standards. Washington Gas is committed to doing all we can
to minimize neighborhood disruptions caused by our construction,” added
Chapman. “We also recognize the investment we are asking customers to
make to help us improve our system. Fortunately, due to the substantial
decrease in natural gas prices, customers actually pay less today for
natural gas service than they did in 2007, even with the PROJECTpipes
surcharge included in their bill.”
Washington Gas will follow the same strict guidelines, practices,
regulations and policies that inform the company’s operations each and
every day, including close collaboration with the DC Department of
Transportation’s (DDOT) permitting processes. These processes require
Washington Gas to adhere to restricted work hours and other
considerations to keep disruptions to streets and traffic to a minimum.
DDOT and Washington Gas will also work together to ensure scheduled
replacement work and activities of other underground service providers
are closely coordinated to further minimize disruptions. In addition,
Washington Gas will continue to engage and inform the community of its
planned activity through company outreach efforts, which include
community briefings, distribution of informational material and
in-person consultation.
Washington Gas has similar programs with regulatory commissions in
Virginia under SAVE (Steps to Advance Virginia's Energy) and in Maryland
through STRIDE (Strategic Infrastructure Development and Enhancement).
Industry-wide programs to accelerate pipeline replacement are underway
across the country and adopted by most jurisdictions. In fact, there are
more than 41 states plus the District of Columbia that have innovative
cost recovery mechanisms for accelerated infrastructure replacement. In
2011, a federal Call to Action was issued by the U.S. Department of
Transportation Pipeline Hazardous Materials Safety Administration
(PHMSA) to pipeline regulatory agencies, policymakers and pipeline
operators to reinforce the importance of investment in upgrading
infrastructure, including aging pipelines, as an effective means to
enforce public safety and mitigate potential risk in each state.
About WGL and Washington Gas
The WGL family of companies—Washington Gas, WGL Energy, WGL Midstream
and Hampshire Gas—are now indirect, wholly-owned subsidiaries of AltaGas
Ltd [TSX:ALA]. WGL is headquartered in Washington, D.C., and is a
leading source for clean, efficient and diverse energy solutions. With
activities and assets across the U.S., WGL provides options for natural
gas, electricity, green power and energy services, including generation,
storage, transportation, distribution, supply and efficiency. Our
calling as a company is to make energy surprisingly easy for our
employees, our community and all our customers. Whether you are a
homeowner or renter, small business or multinational corporation, state
and local or federal agency, WGL is here to provide Energy Answers. Ask
Us. For more information, visit us at wgl.com
and @wglanswers.
WGL’s regulated natural gas utility, Washington Gas, provides safe,
reliable natural gas service to more than 1.1 million customers in the
District of Columbia, Maryland and Virginia. The company has been
providing energy to residential, commercial and industrial customers for
170 years. Visit us at www.washingtongas.com
and follow us on Twitter @washingtongas.
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