AGL seeking $275M for pipeline replacement - CBS46 News

AGL seeking $275M for pipeline replacement

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ATLANTA (AP) -

State officials will decide whether AGL Resources Inc. can collect $275 million from customers to replace plastic pipelines.

The Public Service Commission is set to vote Thursday on an agreement that would let the utility start replacing some 756 miles of the oldest plastic pipeline in its system. Natural gas customers would finance the effort by paying $1.29 per month.

Regulators say those pipelines have a tendency to become brittle and crack. Ultimately, the utility wants to replace 3,320 miles of plastic piping installed from the mid-1960s until 1983.

AGL says replacing those pipes gradually saves money and reduces the risk of a larger failure.

Former utility regulator Robert Baker has criticized the company for charging customers a flat fee rather than linking it to how much gas customers use.

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