The costs will be reflected in customer rates, beginning later this year. The US Department of Transportation has adopted stringent safety and inspection rules following two major pipeline incidents in Washington and New Mexico in recent years. NW Natural has responded to the new regulations with an enhanced pipeline integrity programme, the cost of which is expected to be as much as $5 million in 2004, according to company estimates.
The average impact on residential and business customers will be calculated when the company develops more specific estimates. Additional pipeline integrity management costs could range between $5 million and $15 million per year over the next nine years, company officials said.