Covering the Cost of New Gas Pipes in Georgia
New gas lines and other equipment are coming to six towns in Georgia thanks to money from the federal government. These cities are outside of the Atlanta Gas Light service area, making it hard for them to raise cash for updated infrastructure. But with changing environmental laws, smaller towns still need to make upgrades. The details of the federal funding provide a window into the expenses of your own Georgia gas beyond the therms you use daily. With a glimpse at these costs and projects you’ll see why smaller Georgia cities got federal help to fix gas pipes.
Gas Line Fixes with Federal Funds
According to the Atlanta Business Chronicle, the total amount of money making its way to Georgia is nearly $13 million. Projects range from replacing miles of pipes to software that helps locate pipes and leaks.
For about 99% of us, $13 million is a crazy amount of money. So, keep in mind that these pipeline upgrades are only for six smaller cities that are not in the AGL service area. That starts to put in perspective the enormous costs of maintaining our natural gas infrastructure. This is important to know because you pay for the costs of these updates to AGL systems on your natural gas bill each month.
Typically, AGL will file with the PSC to increase or add to their pass-through charges each year. For example, in July, Georgia Gas Savings covered a new rate hike that funnels $16.9 million per year to AGL to increase capacity.
What Makes New Gas Pipes Expensive?
In short, it’s the material type, the amount of material, and scope of labor. Adding a new gas line to your house costs about $30-$75 per linear foot. These are small projects that might take a technician a couple of hours. In Toccoa, Georgia, they’re replacing 10 miles of natural gas pipelines! Furthermore, this includes main lines which could be about four times bigger than pipelines in your house.
According to Forbes.com, material types can be less expensive, like PVC for example. However, the plastic is susceptible to damage from rocks or roots underground and break more easily when installing. At the other end is steel and iron. However, iron is prone to corrosion and may need regular maintenance. Steel, on the other hand, is used less and less because it’s more labor intensive.
Natural gas pipelines are buried at least 18 inches below the ground. Main lines will be even deeper. Digging out these trenches for miles adds to the cost of a project.
Your Natural Gas Costs
Although AGL uses its pass-through charges to update infrastructure, that doesn’t mean they should get every penny they ask for. Each year when they ask the PSC for more money, you can make a public comment on it. You can also reach out to local representatives to voice concerns about rising utility costs.
Finally, you have the power to lower your natural gas bill today! Find a cheap plan that lasts up to three years when you shop with us at https://www.georgiagassavings.com.