Office of the Ohio Consumers' Counsel

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Safety issues with natural gas risers to be resolved at reduced costs

COLUMBUS, Ohio – April 9, 2008 – Today’s approval of an agreement among Columbia Gas of Ohio, the Office of the Ohio Consumers’ Counsel (OCC) and other stakeholders will result in natural gas riser safety issues being resolved at a reduced cost to residential consumers, said the OCC.

The agreement – approved today by the Public Utilities Commission of Ohio (PUCO) – addresses concerns the OCC had about safety as well as the cost to residential consumers for fixing natural gas risers prone to leaks. A natural gas riser is the vertical portion of the service line that connects the primary distribution pipeline to the customer’s meter.

“This agreement will result in a fair solution that will put customers’ safety first while controlling the costs all customers will pay,” said Janine Migden-Ostrander, Consumers’ Counsel. “When the OCC found that another utility was able to solve the same problem in a more cost-effective manner than Columbia had originally proposed, we helped ensure that Columbia Gas customers would benefit from the same type of savings.”

The OCC found that Duke Energy, another Ohio natural gas utility addressing gas riser concerns, was able to resolve safety problems without replacing as much equipment and using as much labor as was originally proposed by Columbia. The OCC was able to negotiate a requirement that Columbia review less costly options than it had originally proposed. Columbia agreed to use the more cost-effective process where circumstances permit its use.

Based on revised cost estimates and the more cost-effective solution, the OCC estimates that $10 to $15 million or more could be saved.

In November 2006, the PUCO staff issued a report on a statewide investigation into the installation, use and performance of natural gas service risers. The report showed that upon review of a sampling of natural gas risers throughout major natural gas utilities’ service territories, there is some risk with some field-assembled risers.

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 website at www.pickocc.org.