The Public Utilities Commission of Ohio (PUCO) has recently authorised the continuation of Dominion East Ohio’s pipeline infrastructure replacement (PIR) programme its and recover the associated costs for a five-year period running through 2021.
The PUCO also approved an increased annual PIR spending from the present US$160 million, to US$180 million in 2017 and US$200 million in 2018. This figure is set to increase by 3% per year thereafter.
Dominion launched its $US4 billion, 25 year PIR programme in mid 2008. As part of this programme, over 5500 miles of the company's 22 000 mile pipeline system will be replaced. Much of the replaced pipeline was installed in the first half of the 1900s.
The PUCO annually reviews Dominion's expenditures to ensure that the PIR cost recovery charge accurately reflects actual expenditures in the programme. Any cost savings reduce the charge that Dominion achieves as it replaces older pipelines. Through 2015, Dominion East Ohio has passed savings totaling over US$10.2 million back to customers.
The increase in PIR spending is necessary for ensuring completion of the programme in the approved 25 year time frame.
"The PUCO's decision continues to position Ohio at the forefront of pipeline safety through the replacement of older pipelines," said Jeff Murphy, Dominion East Ohio’s Vice President and General Manager.
Adapted from press release by Anna Nicklin
Read the article online at: https://www.worldpipelines.com/project-news/15092016/puco-approves-dominion-east-pipeline-expansion/