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4 billion on safety upgrades to major natural gas pipelines

FILE In this Sept. 9, 2010 file photo, a michael kors handbags massive fire roars through a mostly residential neighborhood in San Bruno, Calif. Michael Kors A report released Friday by the Department of Transportation’s inspector general says the federal agency responsible for making sure states effectively oversee the safety of natural gas and other pipelines is falling down on the job. (AP Photo/Paul Sakuma, File)

Share PhotoFILE In this Sept. 9, 2010 file photo, a massive fire roars through a mostly residential neighborhood in San Bruno, Calif. A report released Friday by the michael kors handbags Department of Transportation’s inspector general says the federal agency responsible for making sure states effectively oversee the safety of natural gas and other pipelines is falling down on the job. (AP Photo/Paul Sakuma, File)San Diego Gas Electric said it will move forward with replacing about 100 miles of large natural gas lines across its 250 miles transmission system after state regulators approved a rough spending plan for safety enhancements.

The local pipeline overhaul is part of a sweeping safety review by state and federal regulators cheap Michael Kors handbags in response to the deadly 2010 pipeline explosion at San Bruno in Pacific Gas and Electric territory. The California Public Utilities Commission ordered the state’s investor owned gas utilities to file plans to test or replace pipelines that have no record of pressure tests.

The commission on Thursday gave the green light for an initial $229 million in capital spending by SDG and an additional $1.2 billion Southern California Gas, though more detailed plans Michael Kors handbags cheap must be submitted before costs are passed on to customers. The two regulated utility monopolies are subsidiaries of San Diego based Sempra Energy.

Sempra spokeswoman Allison Zaragoza said SDG is spending $236 million on transmission upgrades for the four year period ending in 2015.

Large, high pressure lines that are properly manufactured, installed and maintained can last well over 100 years. But utilities including SDG are grappling with how to evaluate the cheap Michael Kors handbags outlet safety of pipes before pressure Discount Michael Kors testing became standard practice.

The decision, adopted unanimously by the five member commission Thursday without public discussion, would bill utility customers for testing pipelines with inadequate safety records that were installed before July of 1961, when the practice was mandated by the commission.

Consumer advocates including the state Office of Ratepayer Advocates say the engineering standards show it cheap michael kors was industry practice to test lines upon installation since 1956, but were overruled by the commission in the final hours before the vote.

The Utility Reform Network estimated moving the cutoff date to 1961 would cost SDG customers an additional $20 million.

“The message that we think Michael Kors handbags outlet needed to be sent was that if you don’t keep adequate records then you have to pay the price, rather than if you don’t cheap michael kors keep adequate records then customers pay the price,” said Mindy Spatt, a spokeswoman for TURN.

In the interest of safety, SDG plans to replace 75 manual valves with remote control technology and sensors that can quickly cut off natural gas flows.

The commission decision puts no dollar limit on safety improvements. Together SDG and SoCalGas intend to invest $1.9 billion in a first phase of improvements, Zaragoza said.

“We cannot estimate the true magnitude of either the testing or replacement costs or the impact on either ratepayers or shareholders at this time,” the commission said in its final written decision. “Although ratepayers will bear the costs of the new and safer pipeline systems as installed, we cannot reasonably forecast and preapprove Safety Enhancement costs at this time because SDG and SoCalGas do not have reliable detailed cost estimates. . This must be resolved later.”

Nathaniel Skinner of the Office of Ratepayer Advocates criticized provisions that allow the utilities to pass on pipeline safety costs to customers before a final reasonableness review, though the commission may order refunds retroactively.Articles Connexes：

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