Press Release

PUC Approves Increase for Scranton Area Steam Heat Provider

Published on 3/16/2006

Filed under: Gas

HARRISBURG – The Pennsylvania Public Utility Commission (PUC) today approved an interim steam cost rate (SCR) increase for Community Central Energy Corp.

The company increased its steam cost rate by $38.13 per MLB from $56.01 to $94.14 per MLB or 68.1 percent. The new rate is effective for service rendered after March 1, 2006. The Commission voted 5-0 approved the increase.

The new rate reflects the recovery of about $356,157 in undercollected natural gas costs from Sept. 1, 2005, through Feb. 28, 2006. It also includes the recovery of about $272,376 in undercollected natural gas costs from previous heating seasons. The rate is designed to allow for the recovery of these undercollections during the remaining three months of the 2005-2006 heating season. The Commission also required the company to notify the consumers of the new rate and how comment or complaints about the rate can be filed with the Commission.

Community Central Energy provides heat for about 27 industrial, commercial, institutional and residential entities. The company uses natural gas to generate steam for its heating customers. By law, Community Central Energy is permitted to pass on to customers natural gas costs related to powering the steam generation plant. It is a dollar-for-dollar pass through of costs.

The Commission is continuing with its investigation into the viability of Community Central Energy after the loss of contracted natural gas service in February affected the company’s ability to ensure affordable, reliable service. In examining the operations of the company, as well as options for consumers, the Commission is working to determine how best to provide reliable heating service to the affected consumers. A staff report on the investigation is expected to be issued to the Commission by the end of April.

The PUC regulates four steam heat companies in the state. Generally, steam heat is produced in centralized generation plants by heating water to its boiling point, and then distributing the steam heat to users through a series of underground pipes.

The Pennsylvania Public Utility Commission ensures safe, reliable and reasonably priced electric, natural gas, water, telephone and transportation service for Pennsylvania consumers, by regulating public utilities and by serving as responsible stewards of competition. For recent news releases, or more information about the PUC, visit our website at www.puc.state.pa.us.

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Docket No:      M-00051891

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