Columbia Gas of Pennsylvania Proposes Further Investments in Safety Through Replacing and Upgrading Aging Infrastructure
Columbia Gas of Pennsylvania, a subsidiary of NiSource (NYSE: NI), has requested the Pennsylvania Public Utility Commission to approve revised rates to upgrade its natural gas distribution pipelines. If approved, the new rates will take effect in December 2021, leading to bill increases of approximately 14.49% for residential customers. Total annual revenue is projected to increase by $98.3 million. The utility has invested over $2.5 billion since 2007 to modernize infrastructure, emphasizing safety and regulatory compliance.
- Plans to upgrade aging infrastructure to enhance safety and service.
- Significant investment of over $2.5 billion since 2007 indicates commitment to modernization.
- Projected annual revenue increase of $98.3 million could support further business growth.
- Proposed rate increases may burden customers, with residential bills rising by 14.49%.
- Potential backlash from customers due to increased utility costs amid economic challenges.
CANONSBURG, Pa., March 30, 2021 /PRNewswire/ -- Columbia Gas of Pennsylvania, Inc., a subsidiary of NiSource Inc. (NYSE: NI), has made a request today with the Pennsylvania Public Utility Commission (PA PUC) to approve revised rates for further upgrading and replacing portions of the company's underground natural gas distribution pipelines. If approved, these proposed rate adjustments would not go into effect until the end of 2021.
"Ensuring the continued, long-term safety of the customers and communities we serve is essential, and it requires the necessary level of investments to modernize an aging energy infrastructure for the future," said Mark Kempic, Columbia Gas President and Chief Operating Officer. "This proposal seeks to balance cost and service in order to continue delivering on our commitments to customers."
With nearly 2,300 full-time employees and contracted resources, Columbia Gas has proudly invested more than
In addition to the positive economic benefits associated with these previous and proposed future investments across the 26-county area served by Columbia Gas, this plan also supports a positive customer experience through ensuring an educated and trained workforce that is focused on safely meeting or exceeding all federal and state industry requirements.
Helping Customers in Need
At all times, Columbia Gas is committed to providing its customers with the tools, resources, and programs to stay safe and warm in their homes. "Even with these necessary investments, any change in customer bills is meaningful," added Kempic. "Assistance is available, and it is our goal to work with customers to identify solutions to keep them connected."
With the communities we serve in mind, and in response to COVID-19, Columbia Gas has suspended late payment fees for residential customers until further notice.
Columbia Gas is also offering an expanded number of flexible payment plans to residential and commercial customers to help spread the balance due on their natural gas bills across multiple months. The PA PUC recently announced that the utility service termination moratorium put in place by an Emergency Order last March will end on April 1, 2021.
Any Columbia Gas customer who may have fallen behind on their energy bills is encouraged to reach out to the company at 1-888-460-4332 or by visiting www.columbiagaspa.com/assistanceprograms.
Review Process by PA PUC
While the company filed its request with the PA PUC today, it is important to note that after filing for a rate adjustment, the review process by the Commission 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 December 2021.
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
If the request is approved as filed, the total average residential customer bill in 2021 would still be almost 20 percent lower than it was 20 years ago, when adjusted for inflation.
The total overall request represents a
How Customers Can Participate in the Rate Review Process
It is important to note that the public has a voice in the review process. Anyone interested in the case can participate by reaching out to the PUC, and the company encourages active involvement by customers and any interested parties.
Customers can participate 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.
About Columbia Gas of Pennsylvania
Columbia Gas of Pennsylvania delivers clean, affordable, and efficient natural gas to approximately 436,000 customers. With headquarters in Canonsburg, Pennsylvania, it is one of NiSource's six regulated utility companies. NiSource (NYSE: NI) is one of the largest fully-regulated utility companies in the United States, serving approximately 3.2 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 3.2 million natural gas customers and 500,000 electric customers across six states through its local Columbia Gas and NIPSCO brands. Based in Merrillville, Indiana, NiSource's approximately 7,500 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 Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). 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. These forward-looking statements include, but are not limited to, statements concerning our 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, our ability to execute our business plan or growth strategy, including utility infrastructure investments; potential incidents and other operating risks associated with our business; our ability to adapt to, and manage costs related to, advances in technology; impacts related to our aging infrastructure; our ability to obtain sufficient insurance coverage and whether such coverage will protect us against significant losses; the success of our electric generation strategy; construction risks and natural gas costs and supply risks; fluctuations in demand from residential and commercial customers; fluctuations in the price of energy commodities and related transportation costs or an inability to obtain an adequate, reliable and cost-effective fuel supply to meet customer demands; the attraction and retention of a qualified workforce and ability to maintain good labor relations; our ability to manage new initiatives and organizational changes; the performance of third-party suppliers and service providers; potential cyber-attacks; any damage to our reputation; any remaining liabilities or impact related to the sale of Massachusetts Business; the impacts of natural disasters, potential terrorist attacks or other catastrophic events; the impacts of climate change and extreme weather conditions; our debt obligations; any changes to our credit rating or the credit rating of certain of our subsidiaries; adverse economic and capital market conditions or increases in interest rates; economic regulation and the impact of regulatory rate reviews; our ability to obtain expected financial or regulatory outcomes; continuing and potential future impacts from the COVID-19 pandemic; economic conditions in certain industries; the reliability of customers and suppliers to fulfill their payment and contractual obligations; the ability of our subsidiaries to generate cash; pension funding obligations; potential impairments of goodwill; changes in the method for determining LIBOR and the potential replacement of the LIBOR benchmark interest rate; the outcome of legal and regulatory proceedings, investigations, incidents, claims and litigation; potential remaining liabilities related to the Greater Lawrence Incident; compliance with the agreements entered into with the U.S. Attorney's Office to settle the U.S. Attorney's Office's investigation relating to the Greater Lawrence Incident; compliance with applicable laws, regulations and tariffs; compliance with environmental laws and the costs of associated liabilities; changes in taxation; and other matters set forth in Item 1, "Business," Item 1A, "Risk Factors" and Part II. Item 7, "Management's Discussion and Analysis of Financial Condition and Results of Operations," of the company's annual report on Form 10-K for the year ended December 31, 2020, some of which risks are beyond our control. In addition, the relative contributions to profitability by each business segment, and the assumptions underlying the forward-looking statements relating thereto, may change over time. All forward-looking statements are expressly qualified in their entirety by the foregoing cautionary statements. We undertake no obligation to, and expressly disclaim any such obligation to, update or revise any forward-looking statements to reflect changed assumptions, the occurrence of anticipated or unanticipated events or changes to the future results over time or otherwise, except as required by law.
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SOURCE NiSource Inc.
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