ACCELERATED REPLACEMENT AND MAINTAINING SAFE AND RELIABLE SERVICE Petition Columbia’s The proposed annual expenditures for the Second LTIIP are detailed Company’s in Table 2, below. This represents a 107% increase over First LTIIP. Columbia’s Table 2: Proposed Annual Expenditures for Its Second LTIIP Columbia’s Year LTIIP Expenditures 2018 $250,200,000 2019 $252,750,000 2020 $273,495,000 2021 $286,695,000 2022 $295,455,000 Total $1,358,595,000 Cost-effectiveness Columbia discusses how it employs a systematic approach, rather than a segmented one. The Company explains that replacing larger sections of the system in a systematic fashion is more efficient and cost-effective in the long run than replacing smaller segments of pipeline. Columbia avers that this approach not only reduces costs, but also reduces the inventory of bare steel and cast iron more rapidly, and reduces the amount of disruption to customers and the municipalities within its service territory. The Company explains that costs are also controlled through a competitive bidding process for its contractors. Additionally, Columbia notes that it is able to purchase larger quantities of construction materials through competitive bidding,
ACCELERATED REPLACEMENT AND MAINTAINING SAFE AND RELIABLE SERVICE Columbia’s Petition The Company’s proposed annual expenditures for the Second LTIIP are detailed in Table 2, below. This represents a 107% increase over Columbia’s First LTIIP. Table 2: Columbia’s Proposed Annual Expenditures for Its Second LTIIP Year LTIIP Expenditures 2018 $250,200,000 2019 $252,750,000 2020 $273,495,000 2021 $286,695,000 2022 $295,455,000 Total $1,358,595,000 Cost-effectiveness Columbia discusses how it employs a systematic approach, rather than a segmented one. The Company explains that replacing larger sections of the system in a systematic fashion is more efficient and cost-effective in the long run than replacing smaller segments of pipeline. Columbia avers that this approach not only reduces costs, but also reduces the inventory of bare steel and cast iron more rapidly, and reduces the amount of disruption to customers and the municipalities within its service territory. The Company explains that costs are also controlled through a competitive bidding process for its contractors. Additionally, Columbia notes that it is able to purchase larger quantities of construction materials through competitive bidding,