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Ohio Consumers’ Counsel opposes Vectren request to recover natural gas riser related costs

COLUMBUS, Ohio – April 4, 2007 –The Office of the Ohio Consumers’ Counsel (OCC), the residential consumer utility advocate, opposes a request by Vectren Energy Delivery of Ohio to collect from its customers any current or future costs related to an investigation of natural gas risers. The OCC voiced its opposition through a filing made today at the Public Utilities Commission of Ohio (PUCO).

Vectren’s request to recover over $200,000 it allegedly already spent and up to $2 million in future costs comes after a November 2006 PUCO staff report on a statewide investigation into the installation, use and performance of natural gas service risers. Natural gas risers are the vertical portion of the service line that connects the pipeline to the customer’s meter.

In its opposition, the OCC stated that it does not believe consumers should have to bear the costs of repairing or replacing faulty natural gas risers. According to the U.S. Department of Transportation, the responsibility for inspecting the installation of the natural gas risers to ensure that they are installed correctly falls on the utility. Additionally, the utility is responsible for the inspection of natural gas risers to document failures, corrosion, leakage history and other aspects that relate to the proper use of the pipeline that includes the riser. These rules also state that if a portion of the pipeline is determined to be in poor condition, but poses no immediate danger, the local natural gas company should develop a program to repair or replace the section with new materials.

The OCC argues that Vectren’s request should be denied because:

Consumers are already paying in current rates for inspection and maintenance related costs. This includes the repair and replacement of faulty natural gas risers.
Vectren wants to recover costs it allegedly already incurred as a result of launching an inspection of all natural gas risers in its service territory as recommended by the PUCO. This recovery should be denied as it is unlawful.
Vectren has not clearly defined the costs related to the inspection and/or replacement of faulty natural gas risers, nor has it demonstrated the financial need to recover up to $2 million in future costs.

The OCC filed its recommendations for handling the repair or replacement of faulty risers at the PUCO on Feb. 5. The PUCO has not issued a decision on the initial investigation.

About the Office of the Ohio Consumers' Counsel

The Office of the Ohio Consumers' Counsel (OCC), the residential utility consumer advocate, represents the interests of 4.5 million households in proceedings before state and federal regulators and in the courts. The state agency also educates consumers about electric, natural gas, telephone and water issues and resolves complaints from individuals. To receive utility information, brochures, schedule a presentation or file a utility complaint, residential consumers may call 1-877-PICKOCC (1-877-742-5622) toll free in Ohio or visit the OCC Web site at www.pickocc.org.