The Pennsylvania Gas Association, a subsidiary of the Energy Association of Pennsylvania, this week launched a public and legislative informational campaign focused on infrastructure replacement for the natural gas industry.

The campaign will draw attention to and seek solutions for the states' aging natural gas infrastructure, a concern to many in the Commonwealth.

"For too long now, this issue has been 'out of sight and out of mind'," says J. Michael Love, president, Pennsylvania Gas Association. "Aging gas pipelines have served us well, but we need to ensure that the gas infrastructure going forward remains safe and reliable. In addition, as the costs of the natural gas commodity increases for our member companies, we want to make sure the delivery to homes and businesses is as efficient as possible protecting both investments and the environment."

Some 46,000 miles of underground natural gas pipeline are currently in place in Pennsylvania. This system is a critical part of our community infrastructure which most of us cannot see or touch, so it clearly does not receive attention from the community on a regular basis.

Replacing aging natural gas infrastructure will not only help to keep Pennsylvania economically competitive, but the replacement work itself is a huge economic stimulus.

Natural gas utilities across the state are investing billions of dollars into the economy to replace their delivery systems as they reach the end of their useful operating life and that work only stands to increase in the coming years. Replacing this infrastructure creates a large demand in various job markets from engineering and construction to agricultural and hospitality jobs and many more.

The campaign, Pennsylvanians for Renewed Natural Gas Infrastructure, will educate consumers and promote legislation ensuring that Pennsylvania's natural gas distribution companies continue to have infrastructure that meets current standards for delivering safe and reliable natural gas service. Natural gas is delivered to some 231,000 businesses and approximately 6,000,000 residents in Pennsylvania twenty-four hours a day, seven days a week, 365 days a year.

"Pennsylvanians for Renewed Natural Gas Infrastructure will focus on how to deal with our aging natural gas delivery systems in the most efficient and effective manner," adds Love. "The campaign will work to educate the public and legislators on the needs for natural gas infrastructure improvements in Pennsylvania. Many existing regulatory and cost allocation policies were put into place decades ago and must be re-examined to ensure continued reliability of one of our most precious energy sources."

Current supporters of Pennsylvanians for Renewed Natural Gas Infrastructure include Northern Pipeline, Columbia Gas of Pa., Dominion Peoples, UGI Penn Natural Gas, Inc., UGI Utilities, Inc., Equitable Gas Co., Utility Workers Union of America, Locals 475 and 479, United Steelworkers of America, Locals 1852-17, 7139-03 and 13836-14, Banks Gas Services, and National Fuel Gas Distribution Corp.

Other supporters include various chambers including those in Washington County and serving Pittsburgh. The Pennsylvania Business Council is also participating. Says Love, "We're pleased that these business organizations are seeing the long-term benefits of taking action now."

The campaign was developed following the first-ever Pennsylvania Infrastructure Summit held in Harrisburg in April, in which the pressing need to address natural gas infrastructure was raised. During the day-long event, senior executives from numerous infrastructure-related industries, and state and nonprofit agencies, outlined the needs of their industry and how these needs could be met.

In addition, some companies discussed planned capital improvements that are either in process or will be accomplished over the next several years. "We realize the key to our 20-year, $1.4 billion infrastructure upgrade is completing the work with the least impact on our customers, and coordinating construction schedules with the community is a big part of that," said Columbia Gas of Pennsylvania President Terrence J. Murphy. "By working together not only can we reduce construction in a community, but we can help reduce municipal and our own expenses by sharing costs."

Love pointed to the cooperative efforts underway in York, Pa. Columbia Gas and local government officials are working diligently to coordinate construction, often in city streets, to minimize the impact on residents and businesses while maximizing pipeline replacement.

"The condition of our infrastructure is directly linked to our quality of life and our economic growth, and the fact that infrastructure has a useful life and will need to be replaced was a key component of the discussion at the Pennsylvania Infrastructure Summit," said Love. "We must develop a solution now in order to appropriately maintain our state's natural gas distribution system.

"By investing in infrastructure development and replacement we add family sustaining jobs, infuse tens of million of dollars into the state's economy while ensuring safe and reliable utility services for residents and businesses for years to come," Love added.

In April, western Rep. Tim Solobay (D-Washington) introduced House Bill 2448, to facilitate in the prompt and timely replacement of natural gas facilities as they reach the end of their useful operating life.

The proposed bill will evenly spread replacement costs over several years, rather than continue the burdensome practice of price spikes at the conclusion of lengthy and expensive rate cases.

"A similar measure is already law in Pennsylvania for water utilities and is considered a best practice within the water industry nationally," Love underscores.

"The bill is important for all business -- from large utilities and engineering firms to contractors like me," said Tom Banks, owner of Banks Gas Services in North Versailles, Pennsylvania. "We do a lot of work for gas distribution companies and I believe this is proof of what I heard one Presidential candidate say, 'investment in infrastructure is an investment in the economy'."

For more information, visit the Pennsylvanians for Renewed Natural Gas Infrastructure website.

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6/6/2008