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Ohio Gas Pipeline Safety 36 th Annual NCRA June 17, 2013 Christine M.T. Pirik Public Utilities Commission of Ohio

Ohio Gas Pipeline Safety 36 th Annual NCRA June 17, 2013 Christine M.T. Pirik Public Utilities Commission of Ohio. State Duties and Obligations as part of the federal/state partnership Operator inspections Compliance and enforcement Incident investigations

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Ohio Gas Pipeline Safety 36 th Annual NCRA June 17, 2013 Christine M.T. Pirik Public Utilities Commission of Ohio

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  1. Ohio Gas Pipeline Safety 36th Annual NCRA June 17, 2013 Christine M.T. Pirik Public Utilities Commission of Ohio

  2. State Duties and Obligations as part of the federal/state partnership • Operator inspections • Compliance and enforcement • Incident investigations • Pipeline construction inspections • Record maintenance and reporting Facilities Inspected • Local Distribution Companies • Transmission Pipelines • Master Meter Operators • Municipal Gas Systems • Co-op Gas Systems • Propane Systems • Gathering Pipelines

  3. Ohio Gas Pipeline Safety Statistics GPS Enforcement Statistics 2012 Inspection units audited:  142 Noncompliance violations found:  111 GPS Ohio-jurisdictional Incidents # of Serious Incidents 2011 total = 12 2011 total = 5 2012 total = 4 2012 total = 1

  4. Remnants after truck hit farm tap off a transmission line Third Party Dig-In

  5. Section 4905.95(B)(1)(b), Ohio Revised Code PUCO may assess upon the operator forfeitures of not more than $100,000 for each day of each violation or noncompliance, except that the aggregate of such forfeitures shall not exceed $1 million for any related series of violations or noncompliances. Process for Enforcement of Major Violations • Staff initiates formal case and files report of investigation • No hearing required if settlement between staff and operator • Hearing held if no settlement between staff and operator (staff to prove the occurrence by a preponderance of the evidence) • Forfeiture can be held in abeyance - depends on seriousness of event

  6. Top GPS safety issues in Ohio # 1 priority: Replacement of cast iron / bare steel / ineffectively coated steel piping # 2 priority: Ongoing implementation of integrity management programs # 3 priority: Gathering line construction in the shale gas fields. (effective 3/27/13 Section 4905.911, Ohio Revised Code, enhanced GPS requirements for pipelines not previously covered)

  7. Ohio Natural Gas Infrastructure Replacement Programs (IRPs) LDCs continually retire and replace aging infrastructure, but the IRPs provide for accelerated replacement of aging infrastructure • 75 years for normal replacement of infrastructure • 20 – 25 years under IRPs for aging infrastructure replacement IRPs Developed to enhance safety, improve operational efficiency, and address some immediate and emerging safety concerns • Certain risers were an immediate safety concern • Increasing rate of leaks in bare steel and cast iron mains and service lines Infrastructure replaced includes bare and ineffectively coated steel, cast and wrought iron, and copper (and in some instances plastic) mains, service lines and risers.

  8. IRP Riders • Initially approved through LDC base rate cases • Ratepayers reimburse LDCs for their infrastructure investments via riders that are in addition to base rates • Prevent frequent base rate cases while allowing for annual reviews by the staff and intervening parties IRP Rider Annual Review Process • LDCs file annual applications detailing their investments and supporting a “revenue requirement” • Staff and intervening parties may file comments on the application • If the comments are not resolved, a hearing will be held • Commission reviews the record and issues its decision

  9. Christine M.T. Pirik Deputy Director, Chief Gas and Power Siting Legal Department Christine.pirik@puc.state.oh.us The Public Utilities Commission of Ohio www.PUCO.ohio.gov

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