Virginia Natural Gas expands investment in natural gas infrastructure modernization program
VIRGINIA BEACH, Va. – March 17, 2016 – Virginia Natural Gas announced today that it has received regulatory approval to continue its infrastructure modernization program to further safeguard the communities it serves. The Virginia State Corporation Commission approval allows the company to continue bolstering the safety and reliability of its natural gas distribution system by replacing aging pipelines and expanding its program, known as SAVE or Steps to Advance Virginia’s Energy plan, for an additional six years.
Virginia Natural Gas will invest $30 million on SAVE infrastructure projects in 2016 and up to $35 million annually after that to replace more than 200 miles of aging pipeline infrastructure through 2021. In addition to enhancing safety and reliability, the company expects that accelerating the rate of the construction projects will further support the state’s environmental goals.
“Replacement of aging pipelines is essential to the delivery of clean, abundant and affordable natural gas energy to our customers,” said K.R. Campbell, vice president of operations, Virginia Natural Gas. “The second phase of SAVE allows us to continue our modernization efforts to ensure natural gas is supplied safely and with a high degree of reliability.”
Since SAVE began in 2012, Virginia Natural Gas has invested approximately $82 million to replace more than 160 miles of pipeline with modern pipeline materials.
The company has worked proactively with state regulators to accelerate its pipeline infrastructure projects to enhance safety, effectively prevent leaks and reduce emissions, while minimizing the impact to customers’ bills.
The expenses associated with SAVE are recovered through a surcharge on customers’ bills. A typical residential customer is expected to see an increase each August of about $1 in monthly bills.
About Virginia Natural Gas
Virginia Natural Gas, a wholly owned subsidiary of AGL Resources (NYSE: GAS), provides retail natural gas sales and distribution services to 287,000 customers in southeast Virginia. For more information, visit www.virginianaturalgas.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 and midstream operations. AGL Resources serves approximately 4.5 million utility customers through its regulated distribution subsidiaries in seven states. The company also serves over one million retail customers 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 and ownership and operation of natural gas storage facilities. AGL Resources is a Fortune 500 company and a member of the S&P 500 Index.