Columbia Gas Transmission, LLC ("Columbia Transmission"), a subsidiary of Columbia Pipeline Group, Inc. (NYSE: CPGX) and Columbia Pipeline Partners LP (NYSE: CPPL) (together, "CPG"), has filed a customer agreement with the Federal Energy Regulatory Commission("FERC") to extend its long-term system modernization program. Columbia Transmission has requested FERC's approval of the customer agreement by March 31, 2016, which will allow critical planning and scoping work to commence in a timely manner.
The filing extends and expands the first-of-its-kind customer agreement, initially approved by the FERC in January 2013. The program will be extended three years, through 2020, and will provide for approximately $1.1 billion of additional investment. The agreement also expands the scope of facility investments covered by the program.
"We are pleased to extend our Modernization Program, which continues a collaborative partnership with our customers to enhance the safety and reliability of the Columbia Transmission system," said CPG President Glen Kettering
. "Further, we believe this agreement is fully consistent with the FERC's recently issued Modernization Policy Statement."
CPG has invested approximately $1.0 billion under the Modernization Program over the last three years, placing more than 100 projects into service, including the:
- replacement of more than 130 miles of bare steel pipelines and wrought iron facilities;
- installation or upgrading of approximately 116,000 horsepower of compression, including adding approximately 80,000 horsepower of compression to its standby fleet; and
- installation of an emerging technology, real-time preventive maintenance monitoring system to more than 80 percent of its existing compressor fleet.
Investments in the Modernization Program have also enabled CPG to reduce greenhouse gas emissions by approximately 20,000 metric tons annually.
Columbia Transmission is engaged in the transmission and storage of natural gas and operates approximately 12,000 miles of pipeline across 10 states. Customers include local gas distribution companies, natural gas producers, energy marketers, electric power generating facilities, as well as industrial and commercial end users. The company also owns and operates one of North America's largest underground natural gas storage systems.
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