Bills would use gas locally
Utilities to file plan with PUC
HARRISBURG - Legislation introduced by two key senators Tuesday would give state government a role in directing utilities to extend natural gas service to business and residential areas that lack it.
The bills sponsored by Sen. Gene Yaw, R-23, Williamsport, and Majority Leader Sen. Dominic Pileggi, R-9, Chester, seek to expand the distribution lines and systems for the lower-cost natural gas produced in the Marcellus Shale formation. Mr. Yaw heads the Senate Environmental Resources and Energy Committee.
"There is widespread interest in seeking locally produced natural gas used locally to benefit our area businesses and homeowners," Mr. Yaw said.
One bill would require natural gas utilities to file a three-year plan with the state Public Utility Commission outlining extension projects. These plans would be updated every two years and the PUC would have the authority to alter plans under the bill. It would allow for expedited projects where an economic development agency or large businesses or residential subdivisions want to obtain service.
Under the bill, a utility would first conduct a survey of which customers have access to natural gas in its service area. The utility would provide a cost-benefit analysis and financing plan for an expansion project to underserved areas.
Most utilities have a policy where they will install 50 feet of natural gas pipeline for free to hook up a customer to a main line, according to Senate analysts. But a hookup can be costly if a longer extension is necessary.
Another bill would earmark $15 million from an existing state alternate energy investment fund for grants to help schools, hospitals and small businesses to obtain access to natural gas service. The grants would be approved by the Commonwealth Financing Authority.
Contact the writer: rswift@timesshamrock.com