Situation
Peoples Gas sought to develop a practical framework for evaluating whether non-pipeline alternatives could serve as feasible and cost-effective substitutes for traditional pipe replacement within its Pipe Retirement Program. The utility needed an approach that would respond to Illinois Commerce Commission directives, preserve system safety and reliability, and support the consistent evaluation of alternatives across a large, multiyear portfolio of infrastructure projects.
Approach
A CRA energy team benchmarked NPA frameworks and methodologies used in leading jurisdictions and worked with Peoples Gas to define an evaluation process that could be integrated into its existing capital planning workflow. CRA developed a three-stage process covering initial feasibility screening, alternative-solution scoping, and benefit-cost analysis. We also created a modular benefit-cost model that evaluates approximately 20 categories of costs and benefits across multiple regulatory tests and can assess electrification, thermal energy networks, and other potential solutions.
Result
CRA provided Peoples Gas with a transparent, repeatable NPA framework, implementation plan, benefit-cost model, and supporting user guide that the utility can apply across future Pipe Retirement Program projects, as well as corresponding expert testimony in Peoples Gas’ rate case. The work supported Peoples Gas’s regulatory testimony and stakeholder engagement and established a consistent basis for comparing pipeline replacement with alternative solutions. The Phase I framework also created the foundation for subsequent system-wide analysis intended to identify and prioritize pipeline segments that may present the strongest potential for NPAs.
