Press Release

PUC OKs Agreement for Lower Rate Increase than Requested by T.W. Phillips

Published on 8/17/2006

Filed under: Gas

HARRISBURG, Pa. – The Pennsylvania Public Utility Commission (PUC) today approved an agreement for a lower base rate increase than requested by T.W. Phillips Gas & Oil Co.

The Commission voted 5-0 to approve the settlement which allows the company to raise its base gas rates by about $6.2 million (3.6 percent). The company’s original proposal called for a rate increase of about $21.7 million (12.4 percent). The new rates become effective Sept. 1, 2006.

Under the settlement, the natural gas service cost for the average residential customer using 100 Mcf a year will go from $1,596 to $1,678 a year. The company’s original proposal increased the total natural gas service costs to $1,887 a year for the average residential customer.

The fixed customer service charge for residential customers will increase from $11 to $12.50 a month, according to the settlement. The company’s original proposal increased the charge to $15.

The settlement also calls for the company to increase its annual funding ceiling for its low-income customer assistance program, known as the Energy Help Fund, to $850,000, up from the proposed ceiling of $650,000. With this increase, more low-income consumers will receive assistance from the company to keep their service and avoid termination.

T.W. Phillips may not file for another rate increase before Nov. 14, 2008, according to the settlement, which was reached between the company, the state’s Office of Consumer Advocate, the state’s Office of Small Business Advocate and the Commission’s Office of Trial Staff.

T.W. Phillips serves about 59,500 customers in Allegheny, Armstrong, Beaver, Butler, Clarion, Clearfield, Indiana, Jefferson and Westmoreland counties.

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 stewards of competition. For recent news releases, or more information about the PUC, visit our website at www.puc.state.pa.us.

# # #

Docket No. R-00051178

Contact:

• Press Secretary
  717-787-5722