ICC approves independent report on condition of natural gas delivery network in Chicago

Rhea-AI Summary

Peoples Gas announced that the Illinois Commerce Commission (ICC) has approved an independent study confirming the urgent need for its System Modernization Program (SMP) to replace aging natural gas pipes. The study revealed over 80% of the pipes have less than 15 years of life remaining, with the replacement program expected to enhance safety and reliability while reducing methane emissions. The project, initiated in 2011, involves replacing 2,000 miles of aging infrastructure. The SMP is 30% complete and aims for full completion by 2040.

Positive

• ICC approval of the independent study supports the urgency of the System Modernization Program.
• Replacement of 2,000 miles of aging pipes enhances public safety and reduces methane emissions.
• SMP is reported to be 30% complete, indicating progress in infrastructure upgrades.

Negative

• More than 80% of the iron pipes in the delivery system have less than 15 years of remaining life, indicating significant aging infrastructure risks.

CHICAGO, Sept. 28, 2020 /PRNewswire/ -- An extensive independent study that found the Peoples Gas program to replace aging natural gas pipes will increase public and customer safety has been approved by the Illinois Commerce Commission (ICC). The approval came after nine months of staff review and input from consumer advocates and environmental groups.

The study by Kiefner and Associates, an international engineering firm, found that more than 80% of the iron pipes in the Peoples Gas delivery system have an average remaining life of less than 15 years. The study also found that by replacing Chicago's aging gas system, the company's System Modernization Program (SMP) will significantly reduce risks in Chicago's natural gas delivery network.

"This independent study and the ICC's comprehensive analysis underscore the urgency of our System Modernization Program," said Charles Matthews, president and CEO of Peoples Gas and North Shore Gas.

Peoples Gas is replacing 2,000 miles of aging iron pipes, some as old as 150 years, with modern piping that does not rust or corrode. The upgrades improve safety and reliability and reduce methane emissions. SMP will be 30% complete by the end of 2020, and is scheduled to be fully completed by 2040.

"We've been able to keep these capital-intensive safety improvements moving forward as a result of an infrastructure rider approved by the Illinois General Assembly in 2013," Matthews said. "The rider provides stability and, ultimately, allows us to perform this work at a lower cost to customers than would otherwise be possible through traditional rate structures. It also allows us to maintain hundreds of union and veteran jobs at a time when many workers are unemployed."

Peoples Gas launched its replacement program in 2011 in response to a call to action from the Obama administration by U.S. Secretary of Transportation Ray LaHood.  This call to action urged utilities with aging systems to accelerate pipeline repair and replacement. The federal directive followed a natural gas explosion in San Bruno, Calif., that killed eight people, injured 58 and destroyed 38 homes. Since then, gas pipeline explosions in Pennsylvania, Texas, New York, Massachusetts and, most recently, Maryland have resulted in the loss of dozens of lives and significant property damage.

In addition to accepting the conclusions of the independent Kiefner study, the ICC requested that Peoples Gas increase reporting and updates to the ICC and provide a cost/benefit analysis for possible additional leak detection.

Kiefner presented its study of the Peoples Gas delivery system to the ICC in January 2020. Since 2013, Peoples Gas has installed more than 758 miles of modern gas main, 70,492 service lines, 165,133 outdoor natural gas meters and 242,345 explosion prevention devices as part of its work on the SMP.

Peoples Gas, a subsidiary of WEC Energy Group (NYSE: WEC), is a regulated natural gas delivery company that serves more than 867,000 residential, commercial, and industrial customers in the city of Chicago. You can find more information about natural gas safety, energy efficiency and other energy-related topics at peoplesgasdelivery.com. Follow us on Twitter and Facebook @peoplesgaschi.

View original content:http://www.prnewswire.com/news-releases/icc-approves-independent-report-on-condition-of-natural-gas-delivery-network-in-chicago-301139056.html

SOURCE Peoples Gas

FAQ

What did the ICC approve for Peoples Gas on September 28, 2020?

The ICC approved an independent study supporting the urgency of the System Modernization Program to replace aging natural gas pipes.

What is the status of the Peoples Gas System Modernization Program?

As of September 2020, the SMP is 30% complete and aims for full completion by 2040.

How many miles of pipes is Peoples Gas replacing?

Peoples Gas is replacing 2,000 miles of aging natural gas pipes.

What percentage of the pipes in the Peoples Gas system are at risk?

The study found that over 80% of the iron pipes have an average remaining life of less than 15 years.