Frequently Asked Questions - Natural Gas Laterals Expansion

Is there really a need for this expansion?

Yes. Currently, a single transmission pipeline serves all 305,000 Pubic Service natural gas customers, which limits us in both capacity and the ability to negotiate prices. If we are to maintain access to reliable supplies of natural gas, the extra capacity achieved by connecting laterals to Guardian II will be needed.

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What is the main cause of the increased demand?

Continued economic growth, more natural gas use and more customers. Since 1980, the number of natural gas customers we serve has doubled. There have not been any large scale increases in transmission capacity. The sole supplier of gas has constructed several smaller scale transmission capacity projects over the years to keep up with the growing demand, but nothing as significant as the Guardian II project.

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How does the approval process work?

Like all such utility projects in Wisconsin, this project will be regulated and closely scrutinized by the state utility regulator, the Public Service Commission of Wisconsin (PSCW) and Wisconsin Department of Natural Resources (WDNR). Essentially, we will put together our best proposal for the project, inform the public of its existence, gather public comment and submit it to the PSCW. They will review it, gather additional studies and input, and make the decision to approve, deny or approve with specific modifications.

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If approved, who would most benefit from this project?

In a near-even split, residential and business/industrial customers stand to benefit. Currently, about 51% of WPSC natural gas is used for residential, with about 49% going to commercial customers.

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How will I benefit from this project?

In several ways. An additional pipeline will introduce an element of competition into the marketplace, giving us the opportunity to negotiate prices on behalf of our customers. Increased capacity would improve the reliability of service by meeting rapidly growing demand. And finally, all of northeastern Wisconsin will benefit from the vibrant economies built, in part, by ready access to natural gas.

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What will the project cost?

Initial estimates for the WPSC lateral portion of the project — 55 miles of new pipeline and three new regulator stations — call for $75 million. This would mean a cost increase of about $1.20 per month for the average customer the first year after the laterals are completed, declining each year after that until reaching zero in the tenth year.

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Would all four laterals that are part of the project be built at the same time?

Yes. We will receive the benefits of shared efficiencies by having all laterals built at the same time.

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Will the laterals cross my land?

Of the areas earmarked for location of the laterals, 99% are on existing right-of-way lands, or they are in areas that already have utilities on them. We want to be as unobtrusive as possible.

State-of-the-art construction techniques and equipment will be used to place the pipeline about four feet under ground and return the surface of the land to its original condition. In a few cases, some new land may be needed, including property owned by private individuals.

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