VIRGINIA BEACH, Va. (WVEC) -- Virginia Natural Gas has received regulatory approval to continue its infrastructure modernization program.
The approval from the Virginia State Corporation Commission allows the company to improve the safety and reliability of its natural gas distribution system by replacing aging pipelines and expanding its program known as "SAVE" or Steps to Advance Virginia's Energy plan for another six years.
“Replacement of aging pipelines is essential to the delivery of clean, abundant and affordable natural gas energy to our customers,” said K.R. Campbell, vice president of operations for Virginia Natural Gas. “The second phase of SAVE allows us to continue our modernization efforts to ensure natural gas is supplied safely and with a high degree of reliability.”
Virginia Natural Gas will invest $30 million on SAVE infrastructure projects in 2016 and up to $35 million annually after that to replace over 200 miles of aging pipeline infrastructure through 2021.
In addition to enhancing safety and reliability, the company expects that accelerating the rate of the construction projects will further support the state’s environmental goals.
Since SAVE began in 2012, Virginia Natural Gas has invested approximately $82 million to replace over 160 miles of pipeline with modern pipeline materials.
The company has worked with state regulators to accelerate its pipeline infrastructure projects to improve safety and effectively prevent leaks and reduce emissions, while minimizing the impact to customers’ bills.
The expenses associated with SAVE are recovered through a surcharge on customers’ bills. A typical residential customer is expected to see an increase each August of about $1 in monthly bills.
