CenterPoint Energy files for recovery after completion of $240M natural gas pipeline modernization effort
Southern Indiana Gas and Electric Co. (SIGECO), a subsidiary of CenterPoint Energy, filed a request last week to recover investments made in its southwestern natural gas service territory following the completion of a seven-year, $240 million modernization effort for its pipelines.
The company’s pursuit of the plan began in 2013 and included upgrades to portions of a 3,200-mile network of distribution mains and transmission pipelines serving nine counties in southwestern Indiana. Bare steel and cast iron were swapped for plastic, inspections were undertaken, and upgrades were pursued as necessary. The results have already been felt, too: SIGECO reported a 36 percent reduction in methane emissions since 2013.
“These infrastructure investments are vital to meeting federal mandates and ensuring the safe and reliable delivery of natural gas to our customers,” Richard Leger, CenterPoint’s vice president of natural gas distribution for Indiana and Ohio, said. “While our natural gas customers will experience a base rate increase to their bills, it will be the first time in nearly 14 years we have pursued such recovery.”
For the average residential customer, this increase would reach around $15 per month. In the same filing, though, SIGECO requested a continuation of natural gas energy efficiency programs through 2025, along with a program to provide gas bill reductions from December through May for eligible customers.
The company stressed that even with potential increases, customer bills should remain much lower than they were prior to SIGECO’s last rate case filing — $100 lower than in 2007-2008, in fact. This is due to considerably lower natural gas commodity costs.
A comprehensive review now begins with the new filing by the Indiana Utility Regulatory Commission (IURC). If approved, the recovery would represent the remaining 20 percent of investments SIGECO made during the years of work. The remaining 80 percent was acquired through gradual investment recovery. More than 113,000 customers could be affected, beginning in the third quarter of 2021.
