On April 26, 2011, Puget Sound Energy (PSE) filed with the commission revisions to its currently effective Tariff WN U-2, designated as the following:
The tariff sheets reflect an issue date of April 26, 2011, and an effective date of August 1, 2011. The purpose of the filing is to submit Schedule 134, Pipeline Integrity Program (PIP) which is a new cost recovery method intended to enhance pipeline safety by providing for the expedited recovery of the Company's investment in new plant to implement certain reliability, integrity, and safety programs related to PSE's natural gas delivery system. The amended scope of the PIP is limited and includes only the following programs: (1) Wrapped Steel Service Assessment; (2) Wrapped Steel Main Assessment; and (3) Older Polyethylene Pipe Replacement. The proposed tariff revision would increase natural gas service revenues under the new cost recovery method by approximately $107,440 for the August 1 through October 31, 2011, initial program period. All subsequent program periods will be November 1 through October 31. The Company anticipates that the revenue requirement for the program period of November 1, 2011, through October 31, 2012, will be $1.95 million. The commission suspended operation of the tariffs by
Order 01 entered in this docket following the July 15, 2011, open meeting.
On July 26, 2011, the commission issued aNotice of Prehearing Conference, which, among other things, set a prehearing conference for August 19, 2011.
On August 24, 2011, the commission entered Order 02 - Prehearing Conference Order establishing a procedural schedule and scheduling an evidentiary hearing for November 17 - 18, 2011.
On May 18, 2012, the commission entered itsOrder 07 - Final Order Rejecting Tariff and Initiating Investigation. Order 07 rejects the tariff but initiates an investigation to promptly determine the extent to which more needs to be done to decrease the risks associated with older pipe. As part of that investigation, the commission will examine replacement requirements and cost recovery methods, including properly designed incentive mechanisms, take into consideration the companies' financial requirements and the impacts to ratepayers.