BAKER: COLUMBIA TO PAY
But CEO mum on recovery costs
Columbia Gas and state agencies will launch a massive repair and relief effort in Lawrence, Andover and North Andover, repairing dozens of miles of pipeline and handing out tens of thousands of electrical appliances, but the company has not yet committed to paying for the relief or refraining from passing the costs on to ratepayers.
“We haven’t established all of those figures, so it’s too early to do that,” said Joe Hamrock, chief executive of NiSource, Columbia Gas’ parent company. “Right now our focus is on establishing, re-establishing lives in the community, taking care of all of the issues that our affected citizens are working through.”
Yesterday, Hamrock, Gov. Charlie Baker and others outlined a plan to deliver tens of thousands of hot plates and space heaters to residents still without gas, as well as committing to restore full gas service by Nov. 19. The immediate relief effort will also require licensed electricians and building inspectors. Baker said he is unsure what the ultimate cost will be, but said there is no question about who will pick up the tab.
“This is going to be paid for by Columbia,” Baker said.
Lawrence Mayor Daniel Rivera said the three cities and towns have hired their own engineering consulting firm, which will keep an eye on the restoration effort and advocate for the municipalities. Rivera said they will seek to pass those costs on to Columbia as well.
Asked if Columbia will eventually hike its gas rates to customers to offset the repair costs, Hamrock was also noncommittal.
“It’s far too early to establish how we’re going to do that,” he said.
In a statement, Baker spokeswoman Elizabeth Guyton said the administration will oppose any efforts to raise rates to compensate the company, echoing Attorney General Maura Healey.
“The Administration opposes Columbia Gas passing any costs on to ratepayers associated with any wrongdoing of the company related to the gas explosions in Merrimack Valley,” Guyton said.
Earlier this week, Columbia withdrew a request to raise gas rates meant to pay for the replacement of leakprone infrastructure. Yesterday, Hamrock said the company did that at Baker’s request.