MERRILLVILLE, Ind., April 15, 2016 /PRNewswire/ -- Columbia Gas of Maryland, Inc., a subsidiary of NiSource Inc. (NYSE: NI), filed a request today with the Maryland Public Service Commission (PSC) to adjust its base rates for distribution service so it can continue to expedite the replacement of aging pipe as well as adopt pipeline safety upgrades.
"Our number one priority is maintaining the safety of our customers and the communities we serve," said Mark Kempic, president of Columbia Gas of Maryland. "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."
Since 2007, Columbia Gas has invested approximately $86 million to modernize and expand its distribution system in Maryland. Of that amount, approximately $54 million was dedicated to replacing more than 57 miles of aging bare steel and cast iron pipe. In 2016, Columbia Gas will invest approximately $15 million in Maryland, with more than $9 million being invested to upgrade aging infrastructure.
"We are proud of our pipeline replacement program and our ability to continue to serve our valued customers safely and reliably, but our work doesn't stop there," said Columbia Gas of Maryland Vice President and General Manager Mike Davidson. "We also remain committed to providing a positive customer experience through an educated and trained workforce focused on safely meeting or exceeding all federal and state requirements while operating our distribution system."
In today's filing, Columbia Gas is seeking an annual revenue increase of approximately $6.5 million.
"We are working more efficiently than ever, and we will continue to look for additional ways to make the most cost-effective decisions for our customers," said Kempic. "Even with this filing, the total average residential customer bill, adjusted for inflation, would still be 22 percent lower than it was in 1996."
If the adjustment is approved by the PSC, the average total bill for a residential customer who purchases 70 therms of gas per month from Columbia Gas would increase from $63.82 to $77.44 (21.34 percent increase). The average total bill for a small commercial customer who purchases 240 therms of gas per month from Columbia Gas would increase from $208.71 to $245.13 (17.45 percent increase). The average total bill for an industrial customer who purchases 3,610 therms of gas per month from Columbia Gas would increase from $2,310.12 to $2,357.41 (2.05 percent increase).
Columbia Gas of Maryland Director of Rates and Regulatory Affairs Adam Lanier noted, "The impact on the customer's bill associated with this filing is softened thanks to continued low, stable natural gas costs. 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."
Gas costs generally represent about a quarter of a residential customer's total bill. Columbia Gas purchases its gas on the wholesale market and under Maryland law, passes these costs on to its customers without mark-up or profit. The gas cost portion of a residential customer's monthly bill is based entirely on their home's monthly gas consumption.
The process for a general rate proceeding before the PSC can take up to nine months and the Company expects that new rates would be effective at the end of 2016. Customers with questions regarding the proposal may call 1-888-460-4332 or visit www.ColumbiaGasMd.com for more information.
About Columbia Gas of Maryland
Columbia Gas of Maryland delivers clean, affordable, and efficient natural gas to approximately 33,000 customers in Garrett, Allegany and Washington counties. It is one of NiSource's seven regulated utility companies. NiSource (NYSE: NI) is one of the largest fully-regulated utility companies in the United States, serving approximately 3.5 million natural gas customers and 500,000 electric customers through its local Columbia Gas and NIPSCO brands. More information about Columbia Gas of Maryland is available at www.ColumbiaGasMD.com.
About NiSource
NiSource Inc. (NYSE: NI) is one of the largest fully-regulated utility companies in the United States, serving approximately 3.5 million natural gas customers and 500,000 electric customers across seven states through its local Columbia Gas and NIPSCO brands. Based in Merrillville, Indiana, NiSource's more than 7,500 employees are focused on safely delivering reliable and affordable energy to our customers and communities we serve. NiSource has been designated a World's Most Ethical Company by the Ethisphere Institute since 2012 and is a member of the Dow Jones Sustainability – North America Index. Additional information about NiSource, its investments in modern infrastructure and systems, its commitments and its local brands can be found at www.nisource.com. NI-F
Forward-Looking Statements
This news release contains forward-looking statements within the meaning of federal securities laws. These forward-looking statements are subject to various risks and uncertainties. Examples of forward-looking statements in this release include statement regarding NiSource's or any of its subsidiaries' business, performance, infrastructure investments and growth. Factors that could cause actual results to differ materially from the projections, forecasts, estimates and expectations discussed in this release include, but are not limited to, NiSource's debt obligations; any changes in NiSource's credit rating; NiSource's ability to execute its growth strategy; changes in general economic, capital and commodity market conditions; pension funding obligations; economic regulation and the impact of regulatory rate reviews; compliance with environmental laws and the costs of associated liabilities; fluctuations in demand from residential and commercial customers; economic conditions of certain industries; the price of commodities and related transportation costs; the reliability of customers and suppliers to fulfill their payment and contractual obligations; potential impairments of goodwill or definite-lived intangible assets; changes in taxation and accounting principles; potential incidents and other operating risks associated with our business; the impact of an aging infrastructure; the impact of climate change; potential cyber-attacks; risks associated with construction and natural gas cost and supply; extreme weather conditions; the ability of subsidiaries to generate cash; uncertainties related to the expected benefits of the separation of Columbia Pipeline Group and other matters set forth in the "Risk Factors" section in NiSource's Annual Report on Form 10-K and in other filings with the Securities and Exchange Commission. NiSource expressly disclaims any duty to update, supplement or amend any of its forward-looking statements contained in this release, whether as a result of new information, subsequent events or otherwise, except as required by applicable law.
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SOURCE NiSource Inc.