How Mega Rule Compliance Impacts Utility Providers

Water, electricity, natural gas, and power–without these necessities, modern life and enterprise would not operate. Because of how fundamental amenities are to our existence, the federal government outlined strict guidelines, known as the Mega Rule, for the way energy gets transported, particularly through pipelines.

We’ve created a series of posts describing what the Mega Rule is and why it happened and built a guide to the Mega Rule’s three parts for industrial businesses. Now, in an effort to help support utility providers, we’ll discuss how Mega Rule Compliance is impacting their industry and what Eagle Eye Services can do to help. Read on to learn more.

Why Utilities Are Important Right Now

Currently, the inflation rate sits just above 4 percent. Year over year, food prices are seeing a nearly 7 percent increase, according to the most recently released Consumer Price Index numbers from the Bureau of Labor Statistics. Housing prices are up 8 percent; transportation costs increased a whopping 10 percent.

These statistics are just a mathematical way to communicate that American consumers and businesses are getting squeezed at every turn. Though there are ways to save money on food and transportation, utilities, like electricity, piped gas, and fuel oil, lack the same kind of price control. The prices are solely in the hands of utility companies.

Energy products are down nearly 12 percent; so are all energy services except for electricity, which is up almost 6 percent. Due to those lower prices, energy (energy commodities, gasoline, fuel oil) and energy services (electricity and piped gas service) are helping Americans stave off the crippling effects of inflation on their bottom line and save some much-needed capital. As a result, it’s paramount for utility providers to minimize the expenses and downtime associated with Mega Rule compliance and contribute to keeping energy-related inflationary costs down.

Why Mega Rule Compliance Has Been Difficult for Utility Providers

There are no two ways about it. Mega Rule compliance is expensive for utility providers.

Utility providers either need to hire an in-house expert or a consulting firm to build digital maps of pipelines and overlay them with the locations of High Consequence Areas (HCAs) and Moderate Consequence Areas.

Pipelines need to be shut down as they get inspected, putting stress on other pipelines and restricting supply. Repairs are a middle-of-the-road expense. However, loss of pipeline functionality can be unbearable in the short term. Replacements can be face-palming expenses; the loss of functionality further compounds the issue.

When the bill comes for reaching that compliance, that cost gets passed down to businesses and consumers.

How Eagle Eye Services Can Help Utility Providers Reach Mega Rule Compliance

The certified industrial painters at Eagle Eye Services are your utility company’s pilot in navigating Mega Rule Compliance. Our team will inspect, diagnose, and test pipelines, allowing your company to report our findings to the Pipeline and Hazardous Materials Safety Administration (PHMSA). Once we’ve located problem areas within the pipeline, we’ll provide you with an estimate and a timeline for repair or replacement. We work with your company to reduce the amount of operational downtime on each affected pipeline, preserving your profits as much as possible.

To learn more about what Eagle Eye Services can do, contact us today at 724-754-1122.