By: Alexander Cochis, Project Manager and Javier Sola, Consultant

Environmental advocates are challenging whether it makes sense to continue with existing pipe replacement programs, arguing that the industry is investing in rate base that will be stranded long before it is fully depreciated.

Key Considerations

• Should a gas company continue, accelerate, or reprioritize its pipe replacement program?
• If regulators place shareholders at risk for new pipe investment, how can local gas distribution companies (LDCs) manage that risk?
• Should the company propose a change to depreciation rates for existing or new pipe?

A pipe replacement framework that incorporates uncertainty attributable to:

• Decarbonization policy
• The economics of electrification
• Customer decisions to continue to use natural gas

Will meet the challenges of a changing environment.

The Concentric Customer Care team is here to assist you with any inquiries you may have, whether it’s regarding a report we have published or a way we can assist your business. If you have not already, head over to our website and click on Concentric Customer Care to start chatting with a member of our team. We look forward to hearing from you.