American Gas - November 2013 - (Page 29)

examine, and implement alternative rate recovery mechanisms that will accelerate the modernization, replacement, and expansion of the nation's natural gas pipeline systems." In Mississippi, for example, regulators have approved a supplemental growth rider (SGR) that allows Atmos Energy to spend up to $5 million a year to bring natural gas to industrial projects in return for the ability to earn a 12 percent return on the supplemental portion of the investment. This creates a clear incentive for the utility to attract that capital, and at the same time supports the state's economic development plans. In Pennsylvania, UGI has proposed a growth extension tariff (GET Gas) that would use a surcharge to spread the cost burden for new main extensions to the group of new customers connecting to the new main over time. This would allow customers to avoid the high initial cost of switching to gas and to offset the surcharge with their savings from using gas. "In recent years, UGI has seen record demand from consumers requesting conversions to natural gas from other fuels," said UGI CEO Robert F. Beard in announcing the plan. "The GET Gas proposal is an innovative program designed to allow an expanded number of consumers greater access to natural gas." Sixteen states have either adopted or are presently considering innovative expansion policies. And that number is expected to grow, according to Rogers: "These conversations are occurring all over the country, and there are more of these programs to come." Below is a look at the states that have infrastructure cost-recovery trackers and surcharges in place for accelerated replacement. On the following pages we provide an overview of how 16 states are approaching expansion and rate recovery. WIth more to come: aT LEaST 16 STaTES HaVE an ExpanSiOnRELaTEd pOLiCY in pLaCE OR UndER COnSidERaTiOn. states That Allow infrastructure cost recovery Trackers or surcharges for Accelerated replacement cost recovery tracker no cost recovery tracker or surcharge surcharge november 2013 AmericAn GAs 29

Table of Contents for the Digital Edition of American Gas - November 2013

American Gas - November 2013
Contents
President’s Message
Subject Index
Head Start: On Energy Education
Digest
Issues
Updates
By the Numbers
Need to Know
Places
The Wheels on the Bus...
California
Michigan
Michigan
New Jersey
Long Island
Fueling the Future
U.S. Secretary of Energy Ernest Moniz
A Tight Ship
Expanding the Reach of the Gas Infrastructure
Company Profiles
Jobs
Marketplace
Headway

American Gas - November 2013