CANONSBURG, Pa., May 22, 2019 /PRNewswire/ -- Columbia Gas of
Maryland, Inc. (Columbia Gas), a
subsidiary of NiSource Inc. (NYSE: NI), filed a request today with
the Maryland Public Service Commission (PSC) to adjust its base
rates for distribution service so it can continue to replace aging
pipeline and adopt pipeline safety upgrades.
"Our number one priority is maintaining the safety of our
customers and the communities we serve," said Mike Huwar, president of Columbia Gas of
Maryland. "We have made, and will
continue to make, substantial capital investments in our system to
update the safe and reliable system we currently operate. We
believe this filing provides a number of tangible benefits to our
customers."
From 2007 to 2018, Columbia Gas invested over $146 million in the modernization and expansion
of its distribution system in Maryland. Of that amount, approximately
$101 million was dedicated to
replacing more than 84 miles of aging bare steel and cast iron
pipe. In 2019, Columbia Gas will invest approximately $29.7 million in Maryland, with $24.4
million being invested to upgrade aging underground
infrastructure.
"We are proud of our pipeline replacement program and our
ability to continue to serve our valued customers safely and
reliably, but our work doesn't stop there," said Huwar. "We also
remain committed to providing a positive customer experience
through an educated and trained workforce focused on safely meeting
or exceeding all federal and state requirements while operating our
distribution system."
In today's filing, Columbia Gas is seeking an annual revenue
increase of approximately $3.7
million.
"We are working more efficiently than ever, and we will continue
to look for additional ways to make the most cost-effective
decisions for our customers," said Huwar.
If the adjustment is approved by the PSC, the average total bill
for a residential customer who purchases 70 therms of gas per month
from Columbia Gas would increase from $84.86 to $91.62 (a
7.97% increase). The average total bill for a small commercial
customer who purchases 250 therms of gas per month from Columbia
Gas would increase from $285.01 to
$300.21 (a 5.33% increase). The
average total bill for an industrial customer who purchases 3,740
therms of gas per month from Columbia Gas would increase from
$2,914.99 per month to $2,956.78 (a 1.43% increase).
Huwar noted, "Thanks to continued low and stable natural gas
costs, the impact on the customer's bill associated with this
filing is reduced. On behalf of our customers, we work with
suppliers to secure the best possible natural gas prices, while
maintaining the reliability of gas supply during peak demand
periods."
Gas costs generally represent about a third of a residential
customer's total bill. Columbia Gas purchases its gas on the
wholesale market and under Maryland law, passes these costs on to its
customers without mark-up or profit. The gas cost portion of a
residential customer's monthly bill is based entirely on a home's
monthly gas consumption.
The process for a general rate proceeding before the PSC can
take up to seven months and Columbia Gas expects that new rates
would be effective near the end of 2019. Customers with questions
regarding the proposal may call 1-888-460-4332 or visit
www.ColumbiaGasMD.com for more information.
About Columbia Gas of Maryland
Columbia Gas of
Maryland delivers clean,
affordable, and efficient natural gas to approximately 33,000
customers in Garrett, Allegany and Washington counties. It is one of NiSource's
seven regulated utility companies. NiSource (NYSE: NI) is one of
the largest fully-regulated utility companies in the United States, serving approximately 3.5
million natural gas customers and 500,000 electric customers
through its local Columbia Gas and NIPSCO brands. More information
about Columbia Gas of Maryland and
NiSource is available at www.ColumbiaGasMD.com and www.nisource.com
.
About NiSource
NiSource Inc. (NYSE: NI) is one of
the largest fully-regulated utility companies in the United States, serving approximately 3.5
million natural gas customers and 500,000 electric customers across
seven states through its local Columbia Gas and NIPSCO brands.
Based in Merrillville, Indiana,
NiSource's approximately 8,100 employees are focused on safely
delivering reliable and affordable energy to our customers and
communities we serve. NiSource is a member of the Dow Jones
Sustainability - North America Index and the Bloomberg Gender
Equality Index and has been named by Forbes magazine among
America's Best Large Employers since 2016. Additional information
about NiSource, its investments in modern infrastructure and
systems, its commitments and its local brands can be found at
www.nisource.com. Follow us at www.facebook.com/nisource,
www.linkedin.com/company/nisource or
www.twitter.com/nisourceinc. NI-F
Forward-Looking Statements
This press release
contains forward-looking statements within the meaning of federal
securities laws. Many factors govern whether any forward-looking
statement contained herein will be or can be realized. Any one of
those factors could cause actual results to differ materially from
those projected. Examples of forward-looking statements in this
press release include statements and expectations regarding
NiSource's or any of its subsidiaries' business, performance,
growth, commitments, investment opportunities, and planned,
identified, infrastructure or utility investments. All
forward-looking statements are based on assumptions that management
believes to be reasonable; however, there can be no assurance that
actual results will not differ materially. Factors that could cause
actual results to differ materially from the projections,
forecasts, estimates, plans, expectations and strategy discussed in
this press release include, among other things, NiSource's debt
obligations; any changes in NiSource's credit rating; NiSource's
ability to execute its growth strategy; changes in general
economic, capital and commodity market conditions; pension funding
obligations; economic regulation and the impact of regulatory rate
reviews; NiSource's ability to obtain expected financial or
regulatory outcomes; any damage to NiSource's reputation;
compliance with environmental laws and the costs of associated
liabilities; fluctuations in demand from residential and commercial
customers; economic conditions of certain industries; the success
of NIPSCO's electric generation strategy; the price of energy
commodities and related transportation costs or an inability to
obtain an adequate, reliable and cost-effective fuel supply to meet
customer demands; the reliability of customers and suppliers to
fulfill their payment and contractual obligations; potential
impairments of goodwill or definite-lived intangible assets;
changes in taxation and accounting principles; potential incidents
and other operating risks associated with our business; the impact
of an aging infrastructure; the impact of climate change; potential
cyber-attacks; construction risks and natural gas costs and supply
risks; extreme weather conditions; the attraction and retention of
a qualified work force; advances in technology; the ability of
NiSource's subsidiaries to generate cash; tax liabilities
associated with the separation of Columbia Pipeline Group, Inc.;
NiSource's ability to manage new initiatives and organizational
changes; the performance of third-party suppliers and service
providers; the availability of insurance to cover all significant
losses and other matters set forth in Item 1A, "Risk Factors"
section of NiSource's Annual Report on Form 10-K for the fiscal
year ended December 31, 2018 and in
other filings with the Securities and Exchange Commission. NiSource
expressly disclaims any duty to update, supplement or amend any of
its forward-looking statements contained in this press release,
whether as a result of new information, subsequent events or
otherwise, except as required by applicable law.
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SOURCE Columbia Gas of Maryland, Inc.