AGL Resources Inc. received unanimous approval from the New Jersey Board of Public Utilities (BPU) to implement its accelerated infrastructure replacement (AIR) program. This allows AGL’s Elizabethtown Gas utility to invest $115 million over four years to enhance the safety, reliability and integrity of its distribution system.
Under the terms, Elizabethtown Gas will file a rate case no later than Sept. 1, 2016. During the term of the AIR program, Elizabethtown Gas will accrue allowance for funds used during construction and associated carrying costs from the time the project is placed in service until its costs are recovered through base rates.
The New Jersey infrastructure program approval comes just two weeks following the approval of another AGL Resources infrastructure enhancement program, the integrated vintage plastic replacement program (i-VPR) under Atlanta Gas Light Co. in Georgia.
John W. Somerhalder, CEO of AGL, called the approvals “vital to maintaining and enhancing the overall reliability, safety and integrity of our distribution systems in those service areas.”