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PSC accepts Sandpiper Energy annual system improvement rate; orders filing of bare‑steel replacement mileage
Summary
The commission accepted Sandpiper Energy’s revised system improvement rate (SIR) tariff for the 12‑month period beginning Dec. 1, 2024, and directed the company to file mileage and locations for bare‑steel replacements from 2017 through 2025.
The Public Service Commission on Jan. 8 accepted revised tariff pages from Sandpiper Energy Inc. to update its system improvement rate (SIR) for the 12‑month billing period beginning Dec. 1, 2024, and directed the company to file the mileage and locations of bare‑steel pipeline it has found and replaced since 2017.
PSC staff summarized the company’s filing and the SIR methodology, noting the proposed surcharge change from 0.502¢ per CCF to 0.517¢ per therm (and a separate Ocean City rate change). Staff said the increase primarily reflects distribution system conversion costs and reconciliation from the prior year. Staff recommended acceptance and asked the commission to require the company to submit the mileage and location of bare‑steel pipe replaced from 2017 to 2025.
Staff also withdrew one recommended action that had appeared in the bucksheet; John Clemenson and Ruthie Herman of staff explained that staff contacted PHMSA and the brief bare‑steel mileage (about 1,842 feet or roughly 0.35 miles) did not require correction of the company’s PHMSA report for that small length. Chesapeake Utilities, the parent company group, said it could supply the mileage and location report by the end of next week.
Commission action: The commission accepted the SIR tariff pages effective for the 12‑month billing period of Dec. 1, 2024, through Nov. 30, 2025, and directed Sandpiper to file the mileage and location of all bare‑steel pipe found and replaced for each year from 2017 through 2025. The motion passed unanimously among commissioners present.
The PSC’s acceptance implements Sandpiper’s calculated SIR for the upcoming year while requiring the company to provide documentation on pipe replacement activity for staff review.
