Columbia Gas of Maryland files for rate increase to support infrastructure replacement

Published on April 20, 2017 by Daily Energy Insider Reports

Columbia Gas of Maryland, Inc. (Columbia Gas), a subsidiary of NiSource Inc., recently filed a request with the Public Service Commission of Maryland (PSC) to adjust its base rates for distribution service so that it can continue to replace and upgrade pipeline infrastructure.

Columbia Gas plans to invest approximately $20.5 million in Maryland in 2017. Nearly $16 million of that amount will be used to upgrade aging underground infrastructure.

“Our number one priority is maintaining the safety of our customers and the communities we serve,”
Mike Huwar, president of Columbia Gas of Maryland, said. “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.”

If the PSC approves the filing, a residential customer who purchases 70 therms of gas per month would see a 16.54 percent increase in their bill from $84.24 to $98.17. A small commercial customer who purchases 240 therms per month would see a 13.26 percent increase from $284.31 to $322.29. The average total bill for an industrial customer who purchases 3,660 therms of gas per month would increase by 0.48 percent from $3,190.45 to $3,205.86.

“The impact on the customer’s bill associated with this filing is softened thanks to continued low, stable natural gas costs,” Columbia Gas of Maryland Director of Rates and Regulatory Affairs Adam Lanier said. “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.”

Columbia Gas expects the new rates to go into effect near the end of 2017.