Corning Natural Gas Corporation's Capital Expenditure Plans for 2021-2025: Key Findings

Strategic Insights -

Corning Natural Gas Corporation has outlined its capital expenditure plans for the next five years, focusing on improving the company's physical plant and enhancing customer service. Matt J. Cook, Vice President of Operations and Customer Service, presented testimony before the New York State Department of Public Service, detailing the company's plans and performance in various areas.

Key Takeaways:

  • The Corning gas system consists of multiple meter and regulator stations, high-pressure pipelines, and a series of regulator stations that reduce pressure to serve 15,000 customers.
  • The company has agreed to replace and take out of inventory at least 10.0 miles of bare and coated unprotected distribution pipe in CY 2021.
  • For calendar year 2020, the company removed a total of 10.7 miles of bare and coated unprotected distribution pipe.
  • The company aims to replace 250 leak-prone services per year, concurrent with main replacement efforts.
  • For calendar year 2020, the company replaced 275 services.
  • The company agreed to have five or fewer Type 1, Type 2A, or Type 2 leaks in its backlog per year by December 31, 2020.
  • For 2020, Corning exceeded both targets and finished the year with two Type 1, Type 2A, and Type 2 leaks and 45 total Type 1, Type 2A, Type 2, and Type 3 leaks.
  • The company is required to meet the current statewide emergency response performance levels, which require responding to 75% of leak and odor calls in 30 minutes, 90% in 45 minutes, and 95% in 60 minutes.
  • Corning met these requirements in 2020.
  • The company has agreed to revise the Damage Prevention targets, tracking overall damages and eliminating targets for damages due to Company, Corning Contractor, or Mismarks.
  • The target for overall damages for 2021 is 2.50 instances per 1,000 "Dig Safely" tickets.
  • For 2020, the company met the Damages due to Company or Corning Contractor target but did not meet the Damages due to Mismarks or Total (Overall) Damages targets.
  • The company has Regulatory Liabilities or Negative Revenue Adjustment mechanisms for leak backlogs, main replacement, High Risk and Other Risk Level Safety Requirements, Emergency Response, and Damage Prevention.

Statistics:

  • The Corning gas system serves 15,000 customers.
  • The company has agreed to replace at least 10.0 miles of bare and coated unprotected distribution pipe in CY 2021.
  • The company removed a total of 10.7 miles of bare and coated unprotected distribution pipe in calendar year 2020.
  • The company replaced 275 services in calendar year 2020.
  • The company exceeded the leak backlog target for 2020, finishing the year with two Type 1, Type 2A, and Type 2 leaks and 45 total Type 1, Type 2A, Type 2, and Type 3 leaks.
  • The company met the emergency response requirements in 2020, responding to 75% of leak and odor calls in 30 minutes, 90% in 45 minutes, and 95% in 60 minutes.
  • The target for overall damages for 2021 is 2.50 instances per 1,000 "Dig Safely" tickets.

Sources:

  • 4844-3982-5905.2 DIRECT TESTIMONY OF MATT J. COOK MJC-1
  • 4844-3982-5905.2 DIRECT TESTIMONY OF MATT J. COOK MJC-2
  • 4844-3982-5905.2 DIRECT TESTIMONY OF MATT J. COOK MJC-3
  • 4844-3982-5905.2 DIRECT TESTIMONY OF MATT J. COOK MJC-4
  • 4844-3982-5905.2 DIRECT TESTIMONY OF MATT J. COOK MJC-5
  • 4844-3982-5905.2 DIRECT TESTIMONY OF MATT J. COOK MJC-6