AGL Lobbies State for $275 Million Pipeline Replacement
Higher bills may be in store for the state’s natural gas consumers.
Regulated utility Atlanta Gas Light wants to charge customers $275 million to replace some of its oldest pipes.
AGL only maintains the state’s pipelines. Private companies provide the gas.
Under AGL’s plan, roughly 700 miles of plastic piping installed from 1965 to the early 1980’s would be replaced.
“They’re showing more and more signs of maintenance issues and we’re trying to get ahead of those problems so you don’t have a major safety incident,” said David Weaver, an AGL vice president.
The state Public Service Commission held a hearing on the plan today.
If the PSC signs off, customer bills would rise about $15 annually. Monthly charges would kick in this fall and continue to 2025.
Consumer advocates argue there’s no hard evidence the pipes need to be replaced. They also say if the plan is implemented, customers should be charged based on the amount of natural gas they use, opposed to a flat rate, which advocates say unfairly burdens low-use residential customers.
AGL’s Weaver says the PSC has ultimate authority over how the charge is imposed, but for now the company’s plan is to go with the flat rate.
“It’s a solid public policy reason for the commission to charge everyone a similar rate because the interest in safety is just the same,” said Weaver.
The PSC will discuss the issue next Thursday and vote on the plan August 6.