GL Resources Inc. announced that its Atlanta Gas Light (AGL) subsidiary has reached a settlement with the Georgia Public Service Commission related to its pipeline replacement programme (PRP) that concluded in December 2013. The settlement resolves all issues related to the previously disclosed February 2015 PRP true-up filing, the August 2014 agreement related to construction issues on one of the capital projects under the programme (the Eastside Pipeline ‘ESPL’), and various other matters. The commission voted unanimously to approve the settlement, which marks the completion of AGL's comprehensive, 15 year programme.
Comments from AGL
"We are pleased to bring this successful PRP to a close," said Bryan Batson, President of Atlanta Gas Light. "It was the foresight of the Georgia Public Service Commission that led to the systematic replacement of over 2700 miles of bare steel and cast-iron, which has made our system even safer and more reliable," he said.
Under the terms of the settlement, AGL will collect US$144 million related to the under-recovered PRP revenue requirement through a monthly surcharge beginning in October 2015 and continuing through 2025. An additional US$30 million will be collected through future rate base adjustments beginning no sooner than 31 March 2017. Further, AGL is pursuing claims against third party contractors related to the ESPL matter and will retain any amounts recovered through the legal process.
Today's settlement is in line with AGL Resources' 2015 earnings per share guidance and consistent with the company's previously disclosed five year plan.
AGL continues to replace ageing pipeline infrastructure and is currently focused on the replacement of vintage plastic pipelines in its system.
Edited from source by Stephanie Roker