FILE - The reactor building at the Crystal River Nuclear Plant seen during a tour held for broadcast and print media, in Crystal River, Fla., Tuesday, June 14, 2011. Charlotte, N.C.-based Duke Energy said Tuesday, Feb. 5, 2013 it will permanently close its Crystal River Nuclear Plant north of Tampa, after botched repairs and use $835 million from an insurance settlement to refund consumers forced to pay for higher-cost replacement power. The nuclear plant o has been shut down since 2009, when its concrete containment building cracked during a maintenance and upgrade project.(AP Photo/Will Vragovic, Pool, File)
Md. Senate considers $2 natural gas surcharge
Published: 03:45:42 PM, Wed 06 February 2013 UTC
ANNAPOLIS, Md. (AP) — The Maryland Senate gave preliminary approval on Tuesday to allow natural gas companies to ask state regulators to impose a $2 surcharge on monthly gas bills to help recover costs for replacing aging infrastructure.
The House of Delegates advanced a similar measure Monday night.
Lawmakers who support the legislation say companies need to replace aging pipes to address safety concerns. Opponents, however, contend gas companies shouldn't be asking for extra money to do a job they should have been doing all along.
The charge would have to be approved by the Public Service Commission.
Maryland analysts estimated the surcharge could raise about $36 million a year, if the maximum charge is assessed on all existing gas customers, with about $24.6 million of that coming from residential customers. About $11.4 million would come from non-residential customers.
A report last year by the American Gas Association found that 19 states had mechanisms for full infrastructure cost recovery for gas companies.
Between 2002 and 2011, there were 30 "significant incidents" in Maryland involving problems with pipelines, causing one fatality and 16 injuries, as well as about $12 million in property damage.
The two houses are scheduled to debate the legislation later this week.
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