OCA also submits concern over the to treat the costs Company’s proposal associated with replacing customer-owned service lines as DSIC-eligible property. The OCA requests that this should be fully examined by the Commission, as the statute limits DSIC-eligible property to incurred to repair, improve or replace eligible property “costs that is part of the distribution 66 Pa. C.S. § 1351. OCA Answer at 3-4. utility’s system.” OCA and CII have expressed concern that Columbia has proposed treating customer service lines in conjunction with the main replacement program as Company’s DSIC eligible property. This concern was also raised in comments to LTIIP. Columbia’s Both OCA and CII have requested evidentiary hearings to review this matter. Resolution As noted above in the LTIIP section, the Commission approved Columbia’s petition at P00072337 to pay for the cost of replacing customer-owned service lines and capitalization of these costs. Section 1510 of the Public Utility Code addresses ownership and maintenance of natural gas service lines and prohibits a utility from acquiring or assuming ownership of pipe installed after the effective date in section’s 1984 except to the extent permitted by then existing tariffs. Consequently, we granted that request for limited waivers of the provisions of its tariff to permit Columbia’s Columbia to replace certain customer-owned service lines. We also found that it is in the public interest for Columbia to replace at its expense certain customer-owned service lines when the lines must be replaced as a result of main replacement and Columbia’s upgrade program. See Service Line Waiver Order. As addressed as part of our discussion of LTIIP above, the Columbia’s Commission agrees with Columbia that such service line projects are reasonable to include in LTIIP and that the costs associated with replacing Columbia’s service lines that are part of its accelerated main replacement program/LTIIP may
OCA also submits concern over the Company’s proposal to treat the costs associated with replacing customer-owned service lines as DSIC-eligible property. The OCA requests that this should be fully examined by the Commission, as the statute limits DSIC-eligible property to “costs incurred to repair, improve or replace eligible property that is part of the utility’s distribution system.” 66 Pa. C.S. § 1351. OCA Answer at 3-4. OCA and CII have expressed concern that Columbia has proposed treating customer service lines in conjunction with the Company’s main replacement program as DSIC eligible property. This concern was also raised in comments to Columbia’s LTIIP. Both OCA and CII have requested evidentiary hearings to review this matter. Resolution As noted above in the LTIIP section, the Commission approved Columbia’s petition at P00072337 to pay for the cost of replacing customer-owned service lines and capitalization of these costs. Section 1510 of the Public Utility Code addresses ownership and maintenance of natural gas service lines and prohibits a utility from acquiring or assuming ownership of pipe installed after the section’s effective date in 1984 except to the extent permitted by then existing tariffs. Consequently, we granted that Columbia’s request for limited waivers of the provisions of its tariff to permit Columbia to replace certain customer-owned service lines. We also found that it is in the public interest for Columbia to replace at its expense certain customer-owned service lines when the lines must be replaced as a result of Columbia’s main replacement and upgrade program. See Service Line Waiver Order. As addressed as part of our discussion of Columbia’s LTIIP above, the Commission agrees with Columbia that such service line projects are reasonable to include in Columbia’s LTIIP and that the costs associated with replacing service lines that are part of its accelerated main replacement program/LTIIP may