PG&E Continues to Prioritize Safety Investments and Upgrades in its Proposed Gas Transmission and Storage Plan

11/17/2017

Typical Residential Customers to See Approximate Two Percent or $1 per Month Increase

SAN FRANCISCO--(BUSINESS WIRE)-- Pacific Gas and Electric Company (PG&E) today submitted a comprehensive proposal as part of its 2019-2021 Gas Transmission and Storage (GT&S) rate request to state regulators. The request outlines how PG&E will continue to achieve increased levels of gas safety by strengthening and modernizing its approximately 6,600 miles of gas transmission pipelines and storage facilities, which serve more than 4.4 million customers across the company’s 70,000 square mile service area. GT&S rate requests and proposed work plans are typically submitted once every three or four years to the California Public Utilities Commission (CPUC).

This proposal focuses on using innovative gas safety technology, such as advanced robotics to inspect the interior of pipelines to detect and repair flaws. It also improves pipeline system safety in anticipation of natural disasters like earthquakes. The accompanying plan provides the needed safety funding to meet anticipated, new and more rigorous state requirements for gas storage facilities.

“We are focused on making the right investments to achieve greater gas safety and reliability today while working hard to achieve customer savings in the future. This rate request prioritizes infrastructure and technology investments, such as automated valves and advanced in-line inspection robotic tools that will continue to enhance our ability to provide safe and reliable service. As we continue to prioritize safety, we are also embracing our responsibility to continually improve our work and minimize impacts to customer bills,” said Nick Stavropoulos, President and Chief Operating Officer of PG&E.

By prioritizing the right infrastructure investments now—such as adding to the more than 260 automated valves on its transmission system; strength testing and in-line inspecting pipelines; and improving and streamlining gas operations—PG&E will improve gas safety and reliability. In addition, PG&E’s proposal to close two smaller gas storage fields to reflect customer demand and changing regulations will help save hundreds of millions of dollars for customers over 20 years.

Among the critical safety investments proposed over the three-year period are:

Deploying 80 more automated and remotely operated valves that quickly turn off gas in case of emergencies or natural disasters like earthquakes or wildfires
Upgrading over 1,100 more miles of pipelines to accommodate advanced robotic devices called “pigs” that are used to inspect the insides of pipelines, and help assess and improve overall pipeline condition
Performing over 2,100 miles of in-the-pipe, pigging inspections
Testing 240 miles of transmission pipelines to verify safe operating pressures
Improving safety measures at all three PG&E gas storage facilities to reflect newly anticipated and more rigorous state laws and regulations, and initiating the sale or closure of two of these facilities, reducing the long-term costs to customers without any impact to the safe and reliable delivery of gas service
Continuing to drive public awareness of damage prevention through the 811 program with public safety partners like local fire departments and contractors

For a typical residential customer, the investments PG&E proposes for 2019 would cost $1.11 more per month, or about four cents a day. A typical small business customer would see an average monthly gas bill increase of $6.65, or about 21 cents a day. This will fund critical safety investments and upgrades across approximately 6,600 miles of gas transmission pipelines. For business customers, increases will depend on the type of service they receive.

"This infrastructure investment plan supports thousands of skilled, well-paying jobs. When this plan is executed by highly trained workers across Northern and Central California, it will enhance safety and improve reliability for PG&E’s customers. This plan is a win for both California’s economy and clean energy future,” said Tom Dalzell, business manager of IBEW Local 1245, which represents most of PG&E’s gas workers.

Critical Investments to PG&E’s Storage Facilities to Enhance Safety and Affordability

One area of increased investment outlined in this request and plan is the work needed to upgrade and increase inspection frequency at PG&E’s largest natural gas storage facility and begin the process of selling or closing two of these smaller facilities. This approach to PG&E’s gas storage business is responsive to the new regulations and shifting market conditions all while providing customers with substantial savings in the long-term without impacting safe or reliable service.

PG&E is required by the CPUC to submit its GT&S rate request before the end of 2017. PG&E is requesting a total of $1.59 billion in revenues for its proposed critical safety investments in 2019, $1.725 billion in 2020 and $1.905 billion in 2021. The company submitted its request to the CPUC for review on November 17. All rate requests are subject to review and approval by the CPUC. PG&E’s customers and members of the public are encouraged to provide feedback on this request through the regulatory review process.

About PG&E

Pacific Gas and Electric Company, a subsidiary of PG&E Corporation (NYSE:PCG), is one of the largest combined natural gas and electric energy companies in the United States. Based in San Francisco, with more than 20,000 employees, the company delivers some of the nation’s cleanest energy to nearly 16 million people in Northern and Central California. For more information, visit www.pge.com/ and www.pge.com/en/about/newsroom/index.page.