Peoples Gas begins natural gas modernisation projects

Peoples Gas has announced five main contractors, each with an Illinois workforce, have been selected to make infrastructure improvements to the natural gas system in Chicago.

Experts from Intren, KS Energy Services, Meade, Michels Pipeline Construction and NPL along with Peoples Gas employees will install new polyethylene main, retire old cast iron pipes, move meters to the outside of buildings, and upgrade system pressure to ensure a continued safe and reliable natural gas distribution system.

Loretta Rosenmayer, Chief Executive Officer, Intren said, "We are delighted to be working on these important infrastructure projects for Peoples Gas. Our competitive bid, diverse workforce and community-focused mindset combined with out exemplary safety record shows time and again that Intren is the right partner for Illinois' utilities."

Union workers from Gas Workers Union Local 18007, Operating Engineers Local 150, Pipefitters Local 597, Teamsters Local 786, several Construction and General Labourers' locals of Chicago and Vicinity and other local trade unions will work together on this important infrastructure upgrade project.

"We are committed to upgrading Illinois' natural gas infrastructure over the next 10 years and we are sustaining around one thousand jobs through this important program," said Will Evans president of Peoples Gas. "Consumers will also benefit from this investment, including improved safety, reliability, and long-term operating cost savings."

Peoples Gas' modernisation plan is designed to expedite the prudent enhancement of Chicago's natural gas infrastructure. The program will eliminate and replace higher risk materials and upgrade the pressure of Chicago's gas distribution system to ensure safety and reliability. The program coincides with a national call to action from the Pipeline and Hazardous Materials Safety Administration (PHMSA) to prioritise enhancements of the nation's ageing natural gas pipelines.

In July 2013, the Illinois General Assembly passed the Natural Gas Consumer, Safety & Reliability Act (Public Act 98-0057) to provide funding for Illinois gas infrastructure upgrades through an adjustment on customer bills. The law contains strong consumer protections, increases transparency and accountability and caps customer impact due to main replacement costs at an annual average of 4% of delivery service rates.

Critically, the ICC maintains its oversight function for all qualified projects and annual reviews and reporting requirements are built into the legislation. The law brings Illinois in alignment with 28 other states that have already recognised the need for a timely cost recovery mechanism as a way to support and encourage large capital investment in ageing natural gas infrastructure.

Adapted from press release by Hannah Priestley-Eaton

Read the article online at: https://www.worldpipelines.com/business-news/24022014/peoples_gas_begins_us_300_million_natural_gas_modernisation_projects/