Press Release

PUC Investigates PPL Gas Rate Increase Request

Published on 6/22/2006

Filed under: Gas

HARRISBURG—The Pennsylvania Public Utility Commission (PUC) today voted to investigate a PPL Gas request to increase gas rates by about $12.8 million.

The Commission voted 5-0 to investigate the company’s proposal that increases the annual bill for an average customer using 8 dekatherms of natural gas by about $127 (7.1 percent). The average annual residential bill would increase from about $1,796 to $1,923.

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 Feb. 1, 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 and recover substantial increases in its level of investment in gas plant, primarily for replacements.  It also would allow the company to recover the revenue shortfall resulting from the implementation and expansion of its Customer Assistance Program, additional expenses associated with the operation of its underground natural gas storage reservoirs and general inflationary increases for labor, materials, healthcare and benefits.

PPL Gas serves about 75,000 customers in 27 counties in Pennsylvania.

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.  R-00061398

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