Press Release

PUC Investigates PG Energy Annual Rate Increase Request

Published on 5/19/2006

Filed under: Gas

HARRISBURG, Pa – The Pennsylvania Public Utility Commission (PUC) today voted to investigate a PG Energy request to increase gas rates by about $29.8 million.

The Commission voted 5-0 to investigate the company’s proposal that increases the annual bill for an average customer using 9,700 MCF of natural gas by about $146 (8.64 percent). The average annual residential bill would increase from about $1,687 to $1,833.

By order of law, the proposal is suspended for up to seven months. The Commission action assigns the matter to a PUC administrative law judge for a recommended decision or settlement. The Commission has until Jan. 12, 2007, to make a final decision at a public meeting in Harrisburg.

According to the company’s filing, the proposed increase would allow the company to earn a fair return on the value of its gas utility property, offset increasing costs of providing natural gas service, maintain adequate coverage on all outstanding securities and attract investment capital at reasonable costs.

PG Energy serves about 160,880 customers in customers throughout northeastern and central Pennsylvania, including the cities of Scranton, Wilkes-Barre, Bloomsburg and Williamsport.

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 Internet homepage www.puc.state.pa.us.

# # #

Docket No. R-00061365

Contact:

• Press Secretary
  717-787-5722