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Costs for road, pipeline repairs escalate for PNG

Pacific Northern Gas (PNG) had already spent more than $500,000 on repairs to its natural gas pipeline adjacent to the Copper River east of Terrace by late last year, indicates information filed with the BC Utilities Commission.

Pacific Northern Gas (PNG) had already spent more than $500,000 on repairs to its natural gas pipeline adjacent to the Copper River east of Terrace by late last year, indicates information filed with the BC Utilities Commission.

Sections of the pipeline, which is normally buried, were exposed as a result of heavy rains last fall requiring temporary repairs while the utility prepares a longterm and more costly plan to reroute and rebury sections of the pipeline so as to make it less vulnerable to future washouts and damage.

In addition to the $523,000 spent on repairs to its main line running adjacent to the Copper River, PNG also spent $98,000 on repairs to a smaller branch line servicing the Kleanza area also exposed because of last fall鈥檚 heavy rains.

The cost figures formed part of PNG鈥檚 nearly 120-page application outlining its revenue needs for this year and for 2019.

It鈥檒l be filing an amended application by end of February after which the utilities commission, which regulates PNG鈥檚 operations, will examine the information provided and set user rates for this year and next.

Temporary rates as of Jan. 1 have already been approved by the utilities commission and will be adjusted as necessary when final rates are set.

Those temporary rates featured a drop in the cost of the natural gas itself to consumers but also featured an increase in the cost of providing the commodity.

How repair costs and planned capital projects costs might be reflected in user rates has yet to be determined but PNG officials have already said they鈥檙e committed to minimizing the impact on rates.

鈥淚n setting rates, the BC Utilities Commission is responsible for ensuring customers receive safe, reliable energy services at fair rates from the business we regulate. We balance that responsibility with the need to ensure service providers are afforded a reasonable opportunity to earn a fair return on their investments,鈥 the commission said in a provided statement.

PNG鈥檚 long-term project plans must be approved by the commission.

PNG operations and engineering vice president Joe Mazza said the utility is 鈥渄oing everything possible to ensure continued, safe, reliable and cost effective service for our customers.鈥

鈥淲e have diligently carried out temporary repairs and are actively working on the permanent repair.鈥

The utility is also working with its insurers to offset its costs, Mazza added.



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