Peoples Gas made a request to the Pennsylvania Public Utility Commission that would increase residential customer bills by up to 21.4% to help fund a project that would replace 2,000 miles of outdated lines in the state during the next 10 years.

Paul Becker, vice president of construction and engineering for Peoples, said via email the pipes targeted for replacement were installed before 1971, and some of them were installed before 1940. A majority of the lines will be replaced with plastic, according to Becker.

“We have a plan that runs through the end of 2033,” Becker said. “The overall modernization program is year-round and includes restoration of streets, sidewalks and yards to their previous condition.”

The request from Peoples to the PUC was to increase annual revenue by $156 million — 18.7% — a request the PUC has been investigating since its board unanimously voted to suspend the request on Jan. 18.

Under the request, an average residential customer in Peoples Natural Gas Division using 80 thousand cubic feet (Mcf) per year would see their monthly bill increase from $73.16 to $88.79. An average customer, which includes commercial customers, in the Peoples Gas Division using 80 Mcf per year would see a monthly increase from $84 to $90.35.

Peoples has customers in Allegheny, Armstrong, Beaver, Blair, Butler, Cambria, Clarion, Clearfield, Fayette, Greene, Indiana, Jefferson, Lawrence, Mercer, Somerset, Venango, Washington and Westmoreland counties, and in Kentucky. The company’s requests for rate increases are reviewed by the Pennsylvania Public Utility Commission.

The PUC is hosting public hearings within Peoples’ service area for people to testify about the rate increase request. Administrative Law Judge Mary Long is presiding over the case regarding the proposed increase.

Long presided over hearings March 6 at Butler County Community College where a few members of the public testified about the increase. Residential customers said the request is too much of an increase, while some nonprofit leaders said Peoples has become a good community partner.

At that hearing, Joseph Byrnes, a retiree from Wexford, said the increase would put a strain on the income he and his wife receive each month, which is mainly through Social Security payments.

“I think a 3% increase is more reasonable to accept,” Byrnes said. “I worked 41 years — I never got an 18% raise in a year.

“It’s a lot of extra money; I don’t feel that they need $156 million extra a year,” he said.

The Pennsylvania Office of Consumer Advocate filed a formal complaint against the rate increase, and an attorney for the agency also spoke at the hearing.

“We will recommend to the administrative law judge and to the PUC that the company’s rates be set as low as reasonably possible,” said Jacob Guthrie, assistant consumer advocate for the OCA.

According to Becker, work to replace pipes is performed by a combination of Peoples employees and contractors. An Inspector is present on each project, the pipelines are tested before being put into service, all projects follow PA One Call for excavation safety and work zones follow OSHA and Pennsylvania Department of Transportation requirements.

The modernization project relies a reasonable return on investment, Becker said.

“The PUC has historically been supportive of a reasonable return to the investors who provide the necessary capital to fund the program,” Becker said. “A reasonable return is necessary for the work to continue.”