PUC approves Valley Energy gas pipeline expansion plan

The Pennsylvania Public Utility Commission (PUC) recently approved a natural gas pipeline expansion plan for Bradford County-based Valley Energy Inc. under which the company will construct a pipeline across and under the Susquehanna River to reach new customers.

The PUC voted 5-0 to approve a joint settlement between Valley Energy, the Pennsylvania Office of Consumer Advocate, the Office of Small Business Advocate and the PUC’s independent Bureau of Investigation and Enforcement.

The company will also construct approximately 18,000 feet of distribution mains. The project will enable service for residents and businesses in the East Athens area who do not currently have access to natural gas service.

The total estimated cost for the project is $1.7 million. The project received an award of $850,000 from the Pennsylvania Department of Community and Economic Development’s Pipeline Investment Program (PIPE).

Under the settlement, Valley Energy may establish an “EA Surcharge” to recover a portion of the expansion project costs from new customers applying for service in East Athens, either as a one-time payment or financed over 10 years with a monthly charge on their bills.

“I would like to take this opportunity to commend Valley for its practical commitment to extending natural gas service,” PUC Chair Gladys Brown Dutrieuille said. “Extending access to natural gas distribution service is a challenging endeavor. While the costs of the commodity are extremely competitive when compared to other heating sources, the costs for investment in fixed infrastructure can often be significant. I continue to support reasonable efforts to grow natural gas access in this state while not unreasonably burdening existing customers.”

The PUC has encouraged utilities to explore ways to reach unserved or underserved communities as part of an effort to expand access to low-cost natural gas across Pennsylvania. Peoples Gas Companies, UGI, Columbia Gas and PECO also operate their own unique service extension programs.