Tag Archives: Utility

Marcellus Shale Gas Impact Fee Proceeds Above $400M

HARRISBURG – Gov. Tom Corbett has announced that the Marcellus Shale Impact Fee, part of Act 13, signed into law in February of 2012, has brought in more than $400 million dollars in its first two years.

“Act 13 is a law that has helped bring Pennsylvania forward both economically and environmentally,” Corbett said. “In addition to enacting some of the most rigorous environmental standards in the nation, we’ve brought in more than $400 million for our communities directly impacted by unconventional drilling, along with other environmental efforts across the state.”

“As this industry grows, benefitting all Pennsylvanians with thousands of new jobs, lower energy prices, and increased energy independence, Act 13 has played a key part in our role making sure that it grows safely and responsibly,” Corbett said.

Collections for 2012 were due to the Pennsylvania Public Utility Commission (PUC) by April 1.

Nearly $198 million is expected to come into the state from the 2012 collections. This is in addition to the $204 million collected during the first round of collections. The 2012 amounts were released yesterday.

The collections this year are slightly lower than last year due mainly to the lower price of natural gas.

Information on the amount of money expected for 2012, as well as the amount of money collected to date, can be found on the Act 13 page on the PUC’s website, www.puc.pa.gov.

SOURCE: http://gantdaily.com/2013/04/05/corbett-impact-fee-proceeds-above-400m-198m-collected-for-2012/

New Jersey Natural Gas wants to spend $204M on new pipes

New Jersey Natural Gas wants to replace about 343 miles of distribution pipes, old mains that are in danger of corrosion and leaks.

If approved by state regulators, the proposed five-year, $204 million project will occur throughout Monmouth, Ocean and Morris counties. The Wall-based utility sent the proposal to the state Board of Public Utilities on Tuesday.

It will replace cast iron and steel distribution lines that are at least 45 years old, as well as associated lines and meters that are connected to customers’ homes, spokesman Michael Kinney said. The scope of the project accounts for 60 percent of the utility’s aged infrastructure, which totals 570 miles out of more than 7,000 miles of pipe.

The cast iron and steel distribution mains, which either lack or have deteriorated wax or epoxy coatings, were commonly use in the industry prior to 1970, the utility said. They are more susceptible to corrosion and leaks and account for over 95 percent of all leaks found on the system, not accounting damage from others.

After it is approved, the utility will file a request with the BPU in June to raise its base rate each year the program is in effect. The project is estimated to annually raise customers bills $8.44, or 0.7 percent, on average, for the typical residential heating customer using 1,000 therms a year, over the life of the program, the utility said.

The utility is calling the program Safe Acceleration and Facility Enhancement. “Ensuring safe, reliable service for our customers and the communities we serve is the most important thing we do,” said Laurence M. Downes, chairman and chief executive officer of New Jersey Natural Gas.

“With the SAFE program, we are looking to upgrade our older and more susceptible infrastructure to ensure the integrity of our system and best serve our customers,” Downes said.

The locations of specific projects for the first year will be filed with regulators after the program is approved, the utility said. The five-year time frame is meant to minimize the impact on towns, help scheduling and give it the ability to buy materials in bulk, Kinney said. It comes as U.S. Secretary of Transportation Ray LaHood pushes for increased pipeline safety, Kinney said. The state’s Energy Master Plan also places an emphasis on investment in natural gas infrastructure.

SOURCE: http://www.dailyrecord.com/article/20120320/NJBIZ/303200021/Gas-utility-wants-new-pipes