PECO to Advance Modernization of its Natural Gas Distribution System

PECO has filed a request with the Pennsylvania Public Utility Commission (PUC) for approval to accelerate the modernization of the company’s natural gas distribution system. PECO’s plan would increase the company’s Long-Term Infrastructure Improvement Plan from $34 million per year to $61 million per year.

For our customers, this means PECO would accelerate the replacement of existing cast iron, bare steel, wrought iron and ductile iron gas main and bare steel service line from 34 years to 20 years.

Although PECO’s natural gas distribution system continues to perform well, PECO has accelerated work to replace this main and service line with plastic piping, which is more durable and improves service reliability. PECO also would relocate all indoor natural gas meters to the exterior of customer properties, complying with the PUC’s requirement to move all indoor natural gas meters outside by 2034.

Under the proposed plan, replacement of natural gas main would increase from about 30 miles per year to more than 50 miles per year by 2018. Bare steel service line replacement would remain at about 4,000 lines per year.

“We know our customers count on us to provide them with safe and reliable gas service, and this investment is part of our continued efforts to deliver on that expectation,” said PECO President and CEO Craig Adams. “Through this effort to modernize our natural gas system, we are working to ensure we continue to meet customer demand for this clean, efficient and economic energy source.”

PECO also filed a plan with the PUC in November of last year, requesting approval of three initiatives to provide more incentives to customers interested in switching to natural gas service. If approved, local customers would pay significantly less to have natural gas installed at their homes and businesses.

PECO works hard to provide safe and reliable service to its customers, and its natural gas distribution system is continually regarded as one of the safest and most reliable systems in the country. Each year, PECO invests more than $90 million to ensure safe and reliable service for more than 500,000 customers through a rigorous maintenance and inspection program. The company operates and maintains more than 12,000 miles of natural gas distribution and service lines, and 31 miles of natural gas transportation lines in Bucks, Chester, Delaware, Montgomery and Lancaster counties.

Based in Philadelphia, PECO is an electric and natural gas utility subsidiary of Exelon Corporation (NYSE: EXC). PECO serves 1.6 million electric and more than 500,000 natural gas customers in southeastern Pennsylvania and employs about 2,400 people in the region.PECO delivered 85.7 billion cubic feet of natural gas and 37.8 billion kilowatt-hours of electricity in 2013. Founded in 1881, PECO is one of the Greater Philadelphia Region's most active corporate citizens, providing leadership, volunteer and financial support to numerous arts and culture, education, environmental, economic development and community programs and organizations. For more information visit PECO.com, and connect with the company on Facebook and Twitter.

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