Nicor Gas to Enhance Safety, Reliability and Integrity of its Natural Gas Distribution System
July 31, 2014
NAPERVILLE, Ill. – July 31, 2014 – Nicor Gas received Illinois Commerce Commission approval today on a tariff that will allow for the recovery of pipeline infrastructure investments across northern Illinois. This nine-year initiative, which begins in 2015, will accelerate natural gas infrastructure upgrades in the Nicor Gas service territory. The tariff will allow Nicor Gas to replace hundreds of miles of aging distribution pipe and thousands of natural gas services, upgrade transmission and natural gas storage systems and replace and refurbish natural gas regulating stations. Infrastructure investments for 2015 are expected to be $171 million.
Approval of the Qualifying Infrastructure Plant tariff filing, which Nicor Gas is calling Investing in Illinois: A Nicor Gas System Improvement Initiative, is part of the Natural Gas Consumer, Safety & Reliability Act. This Act focuses on increasing public safety by accelerating the modernization of the state’s aging natural gas infrastructure.
Under the tariff, Nicor Gas will recover costs through a cost-controlled adjustment on customer bills. The maximum increase to the average residential customer bill in 2015 as a result of these infrastructure investments will be approximately $0.75 per month.
“Our first priority at Nicor Gas is safety – and we are pleased to have the opportunity to accelerate the repair, rehabilitation and replacement of Illinois’ aging natural gas infrastructure,” said Beth Reese, president of Nicor Gas. “This investment in Illinois will allow us to continue to deliver natural gas safely and reliably to our customers while spurring the state’s economic development activities – bringing jobs, business and investments to our region.”
Enhancing and upgrading natural gas infrastructure in Illinois is essential to meeting the growing demand for this energy source as well as delivering it to Nicor Gas’ 2.2 million customers in more than 650 communities.
About Nicor Gas
Nicor Gas, a wholly owned subsidiary of AGL Resources (NYSE: GAS), is a natural gas distribution company that serves more than 2 million customers in a service territory that encompasses most of the northern third of Illinois, excluding the city of Chicago. For more information, visit www.nicorgas.com.
About AGL Resources
AGL Resources (NYSE: GAS) is an Atlanta-based energy services holding company with operations in natural gas distribution, retail operations, wholesale services, midstream operations and cargo shipping. AGL Resources serves approximately 4.5 million utility customers through its regulated distribution subsidiaries in seven states. The company also serves approximately 630,000 retail energy customers and approximately 1.2 million customer service contracts through its SouthStar Energy Services joint venture and Pivotal Home Solutions, which market natural gas and related home services. Other non-utility businesses include asset management for natural gas wholesale customers through Sequent Energy Management, ownership and operation of natural gas storage facilities, and ownership of Tropical Shipping, one of the largest containerized cargo carriers serving the Bahamas and Caribbean region. AGL Resources is a member of the S&P 500 Index. For more information, visit www.aglresources.com.
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