PG&E Continues to Prioritize Safety Investments and Upgrades in its Proposed Gas Transmission and Storage Plan
November 17 2017 - 1:30PM
Business Wire
Typical Residential Customers to See
Approximate Two Percent or $1 per Month Increase
Pacific Gas and Electric Company (PG&E) today submitted a
comprehensive proposal as part of its 2019-2021 Gas Transmission
and Storage (GT&S) rate request to state regulators. The
request outlines how PG&E will continue to achieve increased
levels of gas safety by strengthening and modernizing its
approximately 6,600 miles of gas transmission pipelines and storage
facilities, which serve more than 4.4 million customers across the
company’s 70,000 square mile service area. GT&S rate requests
and proposed work plans are typically submitted once every three or
four years to the California Public Utilities Commission
(CPUC).
This proposal focuses on using innovative gas safety technology,
such as advanced robotics to inspect the interior of pipelines to
detect and repair flaws. It also improves pipeline system safety in
anticipation of natural disasters like earthquakes. The
accompanying plan provides the needed safety funding to meet
anticipated, new and more rigorous state requirements for gas
storage facilities.
“We are focused on making the right investments to achieve
greater gas safety and reliability today while working hard to
achieve customer savings in the future. This rate request
prioritizes infrastructure and technology investments, such as
automated valves and advanced in-line inspection robotic tools that
will continue to enhance our ability to provide safe and reliable
service. As we continue to prioritize safety, we are also embracing
our responsibility to continually improve our work and minimize
impacts to customer bills,” said Nick Stavropoulos, President and
Chief Operating Officer of PG&E.
By prioritizing the right infrastructure investments now—such as
adding to the more than 260 automated valves on its transmission
system; strength testing and in-line inspecting pipelines; and
improving and streamlining gas operations—PG&E will improve gas
safety and reliability. In addition, PG&E’s proposal to close
two smaller gas storage fields to reflect customer demand and
changing regulations will help save hundreds of millions of dollars
for customers over 20 years.
Among the critical safety investments proposed over the
three-year period are:
- Deploying 80 more automated and
remotely operated valves that quickly turn off gas in case of
emergencies or natural disasters like earthquakes or wildfires
- Upgrading over 1,100 more miles of
pipelines to accommodate advanced robotic devices called “pigs”
that are used to inspect the insides of pipelines, and help assess
and improve overall pipeline condition
- Performing over 2,100 miles of
in-the-pipe, pigging inspections
- Testing 240 miles of transmission
pipelines to verify safe operating pressures
- Improving safety measures at all three
PG&E gas storage facilities to reflect newly anticipated and
more rigorous state laws and regulations, and initiating the sale
or closure of two of these facilities, reducing the long-term costs
to customers without any impact to the safe and reliable delivery
of gas service
- Continuing to drive public awareness of
damage prevention through the 811 program with public safety
partners like local fire departments and contractors
For a typical residential customer, the investments PG&E
proposes for 2019 would cost $1.11 more per month, or about four
cents a day. A typical small business customer would see an average
monthly gas bill increase of $6.65, or about 21 cents a day. This
will fund critical safety investments and upgrades across
approximately 6,600 miles of gas transmission pipelines. For
business customers, increases will depend on the type of service
they receive.
"This infrastructure investment plan supports thousands of
skilled, well-paying jobs. When this plan is executed by highly
trained workers across Northern and Central California, it will
enhance safety and improve reliability for PG&E’s customers.
This plan is a win for both California’s economy and clean energy
future,” said Tom Dalzell, business manager of IBEW Local 1245,
which represents most of PG&E’s gas workers.
Critical Investments to PG&E’s Storage Facilities to
Enhance Safety and Affordability
One area of increased investment outlined in this request and
plan is the work needed to upgrade and increase inspection
frequency at PG&E’s largest natural gas storage facility and
begin the process of selling or closing two of these smaller
facilities. This approach to PG&E’s gas storage business is
responsive to the new regulations and shifting market conditions
all while providing customers with substantial savings in the
long-term without impacting safe or reliable service.
PG&E is required by the CPUC to submit its GT&S rate
request before the end of 2017. PG&E is requesting a total of
$1.59 billion in revenues for its proposed critical safety
investments in 2019, $1.725 billion in 2020 and $1.905 billion in
2021. The company submitted its request to the CPUC for review on
November 17. All rate requests are subject to review and approval
by the CPUC. PG&E’s customers and members of the public are
encouraged to provide feedback on this request through the
regulatory review process.
About PG&E
Pacific Gas and Electric Company, a subsidiary of PG&E
Corporation (NYSE:PCG), is one of the largest combined natural gas
and electric energy companies in the United States. Based in San
Francisco, with more than 20,000 employees, the company delivers
some of the nation’s cleanest energy to nearly 16 million people in
Northern and Central California. For more information, visit
www.pge.com/ and
www.pge.com/en/about/newsroom/index.page.
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