NOTICES
PENNSYLVANIA PUBLIC
UTILITY COMMISSION
Replacement of Older Plastic Pipe in Natural Gas Distribution Systems
[54 Pa.B. 5706]
[Saturday, September 7, 2024]
Public Meeting held
August 1, 2024
Commissioners Present: Stephen M. DeFrank, Chairperson; Kimberly Barrow, Vice Chairperson; Ralph V. Yanora; Kathryn L. Zerfuss, verbal statement; John F. Coleman, Jr.
Replacement of Older Plastic Pipe in Natural Gas Distribution Systems; M-2024-3050313
Tentative Order
By the Commission:
Consistent with the Motion of Chairman Stephen M. DeFrank adopted on August 1, 2024, the Pennsylvania Public Utility Commission (Commission) enters this Tentative Order regarding the accelerated replacement of older plastic pipe by public utilities distributing natural gas. Section 1501 of the Public Utility Code authorizes the Commission to ensure that public utilities maintain safe and reliable facilities.1
Installing and maintaining safe and reliable infrastructure is the foundation for achieving this mandate. Pennsylvania's aging infrastructure and advisory bulletins issued by the U.S. Department of Transportation (DOT), related to pre-1982 plastic pipe materials, have caused the Commission to address the safety and reliability of natural gas distribution system pipelines in the Commonwealth. With this Tentative Order, the Commission seeks comments on the proposals to accelerate the replacement of older plastic pipes as outlined herein.
Background and History
I. History of Older Plastic Pipe and Advisory Bulletins
In 1998, the National Transportation Safety Board (NTSB) published a report containing the results of a special investigation into accidents concerning plastic pipe used to deliver natural gas.2
The report noted that although plastic piping is generally accepted as a safe and economic alternative to steel pipe or pipe made of other materials, the NTSB described how plastic pipe installed in natural gas distribution systems from the 1960s through the early 1980s may be vulnerable to brittle-like cracking because of improper joining or installation. The report suggested that more durable plastic pipe materials and more realistic strength testing has improved the reliability estimates of modern plastic pipe and fittings.
The 1998 NTSB report prompted the United States Department of Transportation (DOT), through its Research and Special Programs Administration (RSPA), to issue two advisory bulletins on plastic pipe on March 11, 1999.3
The advisory bulletins explained that brittle-like cracking in plastic pipe generally relates to a part-through crack initiation in the pipe wall followed by stable crack growth at stress levels lower than the stress required for yielding. This results in a tight, slit-like opening where natural gas can escape. The advisory bulletins indicated that small brittle-like cracks may be difficult to detect until a significant amount of gas leaks from the pipe and potentially migrates into an enclosed space.
The DOT recommended that owners and operators of natural gas distribution systems identify all pre-1982 plastic pipe installations, analyze leak histories, and evaluate conditions that may impose high stress on the pipe. Appropriate remedial action, including replacement, was recommended to be taken to mitigate any risks to public safety. The first advisory bulletins also identified plastic pipe manufactured by Century Utility Products Inc. as having susceptibility to brittle-like cracking.
The DOT, through the RSPA, issued a third advisory bulletin on November 26, 2002.4
The bulletin described the formation of the Plastic Pipe Database Committee (PPDC), which developed a process for gathering data to support an analysis of the frequency and causes of plastic pipe failures. The advisory bulletin further recommended record keeping and data collection practices to aid operators with polyethylene piping systems in managing and identifying brittle-like cracking problems. The advisory bulletin also added two further pipe materials—low-ductile inner wall ''Aldyl A'' piping manufactured by the Dupont Company prior to 1973 and polyethylene gas pipe designated PE 3306—as being more susceptible to brittle-like cracking.
On September 6, 2007, the DOT, through the Pipeline and Hazardous Materials Safety Administration (PHMSA), issued a fourth advisory bulletin concerning older plastic pipe.5
This advisory bulletin expanded on the information provided in the three prior bulletins by listing two additional pipe materials with poor performance histories relative to brittle-like cracking: Delrin insert tap tees and Plexco service tee Celcon (polyacetal) caps.
II. Recent Actions Addressing Older Plastic Pipe
On September 21, 2023, Representative Chrissy Houlahan introduced a bill in the U.S. House of Representatives—the Aldyl A Hazard Reduction and Community Safety Act.6
The bill, if passed, directs the U.S. Secretary of Transportation (Secretary) to require gas pipeline operators to conduct an assessment of pipeline facility records to determine the presence of Aldyl A piping. Operators would be required to submit documentation of the total pipeline mileage and number of components identified as Aldyl A, and if there are insufficient records, to adhere to the methodology that would be established by the Secretary. The Secretary would be required to issue standards for the removal of Aldyl A piping at all pressurized locations within four years of the enactment of the legislation, and operators would be required to remove Aldyl A piping at all pressurized locations no later than five years of the enactment of the legislation.
III. Pennsylvania's Focus
The Commission recognizes that Pennsylvania's natural gas public utilities face competing priorities in terms of repairing and replacing aging infrastructure, and acknowledging the cost of such projects, natural gas distribution systems in the Commonwealth still contain the older plastic pipe materials identified by the NTSB and the DOT as being susceptible to brittle-like cracking. Therefore, the Commission finds it appropriate to explore the acceleration of replacing the aforementioned older plastic pipe materials using the tools already available to natural gas public utilities under Pennsylvania law.
Proposed Resolution
I. Survey of Older Plastic Pipe in Pennsylvania's Gas Distribution Systems
Pursuant to the Commission's authority under Section 504 of the Public Utility Code,7
on October 11, 2023, the Commission issued a data request to all jurisdictional natural gas public utilities to determine the approximate current mileage and number of service tees of the above-described older plastic pipe material installed and in operation in Pennsylvania. The responses confirm the presence of older plastic pipe materials in Pennsylvania's natural gas distribution systems.
A small number of public utilities distributing natural gas did not respond to the data request. Therefore, we direct the Bureau of Technical Utility Services (TUS) to re-issue the Commission's October 11, 2023, data request to the natural gas distribution public utilities that previously failed to respond, directing those entities to respond within thirty (30) days following receipt of the data request. To carry out its duty in requiring public utilities to provide safe and reliable service, the Commission should know the full universe of older plastic pipe materials that are in operation in the Commission's jurisdictional natural gas distribution systems.
II. Amending LTIIPs to Target the Replacement of Older Plastic Pipe
On February 14, 2012, Act 11 of 2012 (Act 11) was enacted, amending Chapters 3, 13, and 33 of the Public Utility Code, which, among other things, allows electric, natural gas, and wastewater public utilities to petition the Commission for a Distribution System Improvement Charge (DSIC).8
Following passage of Act 11, the Commission issued various implementation orders to assist in the administration of the DSIC and related provisions.9
Act 11 requires a public utility to submit to the Commission a long-term infrastructure improvement plan (LTIIP) in order to be eligible to recover costs under a DSIC.10
The LTIIP must include: (1) identification of the types and age of eligible property for which the utility intends to seek recovery; (2) an initial schedule for the planned repair and replacement of the eligible property; (3) a general description of the location of the eligible property; (4) an estimate of the quantity of eligible property to be improved; (5) projected annual expenditures to implement the plan and measures to ensure that the plan is cost effective; and (6) the manner in which the replacement of aging infrastructure will be accelerated and how the repair, improvement, or replacement will maintain safe and reliable service. Moreover, the Commission is empowered to order a new or revised plan if an LTIIP is not adequate and sufficient to ensure and maintain adequate, efficient, safe, reliable, and reasonable service.11
Previously, the Commission encouraged the prioritization of replacing cast iron and bare steel pipe, and such pipe materials were included in the first LTIIPs filed by natural gas distribution companies (NGDCs).12
Significant progress has been made in the removal of cast iron and bare steel pipe in Pennsylvania's natural gas distribution systems. While the Commission understands that cast iron and bare steel have not been fully eliminated, the Commission would like to emphasize the importance of simultaneously focusing on the replacement of older plastic pipe.
Therefore, the Commission proposes that NGDCs and smaller natural gas distribution companies that are eligible for a DSIC, petition the Commission to amend their current LTIIPs to focus on the replacement of the older plastic pipe that is highlighted in the four advisory bulletins, supra., as eligible property if such plastic pipe is not already targeted to be replaced. The Commission further proposes that the amendments related to older plastic pipe include all the criteria necessary to consider an LTIIP,13
including the establishment of a schedule for the planned repair and replacement of older plastic pipe materials. Because operators of natural gas distribution systems are required to identify, evaluate, and rank all perceived threats and risks and implement measures to address the same through a Distribution Integrity Management Plan (DIMP),14
the Commission seeks comment on amending LTIIPs to target the accelerated replacement of older plastic pipe.
III. Pipeline Replacement Plans for Gas Utilities Without a DSIC
In November 2011, prior to the enactment of Act 11, the Commission issued a Tentative Order that, among other things, proposed a process for Pennsylvania's major natural gas distribution systems to implement a Commission-approved Pipeline Replacement and Performance Plan based on the utility's DIMP.15
In February 2013, the Commission ultimately determined not to establish a separate, statewide Pipeline Replacement and Performance Plan filing requirement.16
The Commission found that this effort was duplicative to the Act 11 DSIC regulatory scheme, and that after a review of initial LTIIP filings, many NGDCs were utilizing the DSIC to facilitate the replacement of aging infrastructure.
Smaller natural gas public utility systems may not be eligible to use a DSIC and may have aging infrastructure present in their systems consisting of materials identified as being at-risk for failure.17
Therefore, pursuant to the Commission's authority under Sections 501, 504, 505, 506, and 1501 of the Public Utility Code,18
the Commission believes that it is prudent to revisit a Pipeline Replacement Plan filing requirement for gas utilities that are not eligible to utilize a DSIC. Pipeline Replacement Plans are a valuable substitute for natural gas public utilities that are not required to file LTIIPs. Similar to the proposal in 2011, the Commission proposes that the Pipeline Replacement Plans should include:
(1) Replacement timeframes and a proposal for how the cost of the pipeline replacement will be addressed in rates. The utilities' design of these programs should take into consideration specifics related to each public utility, including a utility's total amount of risky pipe, customer rate stability, utility financial health, and the amount of time that the public utility estimates to replace the at-risk infrastructure; and
(2) Compliance with the following pipeline replacement performance metric: the public utility's average rate of pipeline replacement during the previous ten years or the rate that will result in the replacement of all at-risk pipe within twenty years, whichever results in a more accelerated rate of replacement. Additionally, each non-DSIC eligible gas public utility must replace the older plastic pipe identified above, unprotected bare or coated steel, and cast iron pipe based upon their DIMP plan for risk assessment with the rate of replacement equal-to or greater-than their metric. A utility may request to waive compliance with the pipeline replacement performance metric pursuant to 52 Pa. Code § 1.91, if the utility's DIMP plan prohibits it from complying with the metric or if compliance with the metric would result in unreasonable rates.
The Commission proposes that the Pipeline Replacement Plans be filed with the Commission's Secretary and reviewed by TUS. TUS will determine whether the Plan is reasonable and will accept or reject the plan via a Secretarial Letter. A utility may appeal TUS' determination pursuant to 52 Pa. Code § 5.44.
Pipeline Replacement Plans are a public document. Accordingly, if a utility believes that a portion of the information qualifies as confidential security information (CSI), pursuant to 35 P.S. § 2141.2, the utility shall follow the CSI filing requirements at 52 Pa. Code § 102.3(b), including clearly stating in a transmittal letter that the Plan contains CSI and filing a redacted public version of the Plan. For Plans containing confidential and proprietary information that is not CSI, a utility shall file a redacted public version of the Plan pursuant to 52 Pa. Code § 1.32(b)(4).
Conclusion
The Commission believes that pursuing the accelerated replacement of the specific older plastic pipe that has been identified by the DOT as being susceptible to brittle-like cracking is a worthwhile endeavor to further promote safe and reliable service by the Commission's jurisdictional natural gas distribution public utilities. Accordingly, the Commission seeks comment on amending LTIIPs to target the accelerated replacement of older plastic pipes and the requirement for non-DSIC eligible public utilities distributing natural gas to file Pipeline Replacement Plans as proposed in this Tentative Order. Therefore,
It Is Ordered That:
1. A copy of this Tentative Order be served on all regulated natural gas distribution public utilities, city natural gas distribution operations, the Office of Consumer Advocate, the Office of Small Business Advocate, and the Bureau of Investigation and Enforcement.
2. The Bureau of Technical Utility Services re-issue the Commission's October 11, 2023, data request related to a survey of older plastic pipe materials to the natural gas distribution public utilities that failed to respond to that prior request, and that those natural gas distribution public utilities be directed to respond within thirty days following receipt of the data request.
3. The Secretary shall deposit this Tentative Order with the Legislative Reference Bureau for publication in the Pennsylvania Bulletin.
4. Interested parties shall have thirty days from the date this Tentative Order is published in the Pennsylvania Bulletin to file comments and forty-five days from the date this Tentative Order is published in the Pennsylvania Bulletin to file reply comments at Docket No. M-2024-3050313.
5. Comments and reply comments may be filed either electronically or in hard copy with the Pennsylvania Public Utility Commission, Attn: Secretary Rosemary Chiavetta, Commonwealth Keystone Building, Second Floor, 400 North Street, Harrisburg, Pennsylvania 17120.19
6. The Law Bureau, with assistance from the Bureau of Technical Utility Services, shall review the comments, and all the information provided therein, and shall present a Final Order to the Commission for consideration.
7. The contact person for technical issues related to this Tentative Order is Matthew Stewart, Bureau of Technical Utility Services, 717-214-1936 or mattstewar@ pa.gov. The contact person for legal and process issues related to this Tentative Order is Adam Young, Law Bureau, 717-787-4700 or adyoung@pa.gov and Steven Bainbridge, Law Bureau, 717-783-6165 or sbainbridg@ pa.gov.
ROSEMARY CHIAVETTA,
Secretary
ORDER ADOPTED: August 1, 2024
ORDER ENTERED: August 26, 2024
[Pa.B. Doc. No. 24-1283. Filed for public inspection September 6, 2024, 9:00 a.m.]
_______
1 66 Pa.C.S. § 1501.
2 Brittle-Like Cracking in Plastic Pipe for Gas Service, NTSB/SIR—98-01 (April 23, 1998). Brittle-Like Cracking in Plastic Pipe for Gas Service (ntsb.gov).
3 Potential Failures Due to Brittle-Like Cracking of Older Plastic Pipe in Natural Gas Distribution Systems, 64 Fed. Reg. 12212, (March 11, 1999). *99-6051.pdf (govinfo.gov); Potential Failure Due to Brittle-Like Cracking of Certain Polyethylene Plastic Pipe Manufactured by Century Utility Products Inc., 64 Fed. Reg. 12211 (March 11, 1999). 99-6013.pdf (govinfo.gov).
4 Notification of the Susceptibility to Premature Brittle-like Cracking of Older Plastic Pipe, 67 Fed. Reg. 70806 (November 26, 2002). Federal Register: Notification of the Susceptibility to Premature Brittle-Like Cracking of Older Plastic Pipe.
5 Pipeline Safety: Updated Notification of the Susceptibility to Premature Brittle-Like Cracking of Older Plastic Pipe, 72 Fed. Reg. 51301 (September 6, 2007). Federal Register: Pipeline Safety: Updated Notification of the Susceptibility to Premature Brittle-Like Cracking of Older Plastic Pipe.
6 H.R. 5638, 118th Congress (2023). The bill was co-sponsored by Representative Daniel Meuser.
7 66 Pa.C.S. § 504.
8 66 Pa.C.S. §§ 1350—1360. Public utilities providing water service were authorized to utilize a DSIC prior to the enactment of Act 11.
9 Implementation of Act 11 of 2012, Docket No. M-2012-2293611.
10 66 Pa.C.S. § 1352(a). See also Implementation of Act 11 of 2012, Docket No. M-2012-2293611 (Final Implementation Order entered August 2, 2012).
11 66 Pa.C.S. § 1352(a)(7).
12 Natural Gas Pipeline Replacement and Performance Plans, Docket No. M-2011-2271982 (Final Order entered February 28, 2013) at 4.
13 See 66 Pa.C.S. § 1352(a).
14 49 CFR § 192.1007.
15 Natural Gas Pipeline Replacement and Performance Plans, Docket No. M-2011-2271982 (Tentative Order entered November 10, 2011).
16 Natural Gas Pipeline Replacement and Performance Plans, Docket No. M-2011-2271982 (Final Order entered February 28, 2013).
17 For the purposes of establishing a DSIC, a ''utility'' is defined as a natural gas distribution company. 66 Pa.C.S. § 1351. Natural gas distribution companies do not include utilities with annual gas operating revenues of less than $6,000,000, absent certain exceptions. 66 Pa.C.S. § 2022.
18 66 Pa.C.S. §§ 501, 504, 505, 506, and 1501.
19 See http://www.puc.pa.gov/filing_resources.aspx for filing instructions.
No part of the information on this site may be reproduced for profit or sold for profit.
This material has been drawn directly from the official
Pennsylvania Bulletin full text database.
Due to the limitations of HTML or differences in display capabilities
of different browsers, this version may differ slightly from the
official printed version.
