Press Release

PUC Considers $175,000 Settlement with Allegheny Power over State College Terminations

Published on 9/15/2006

Filed under: Electric

HARRISBURG – The Public Utility Commission (PUC) today issued for public comment a settlement with Allegheny Power that includes a $175,000 contribution to a low-income program and ends an informal investigation into a utility termination that preceded a fatality in State College.

“This Commission will continue to do everything within its power to ensure needy consumers receive assistance in paying their utility bills while at the same time remaining committed to close and careful monitoring of the utilities to ensure they are following the law when it comes to terminating service,” said Commission Chairman Wendell F. Holland. “Hopefully, this settlement will mitigate the occurrence of unfortunate events in the future.”

The Commission voted 5-0 to accept comments to the settlement agreement, which includes the $175,000 contribution to the Dollar Energy Fund, a non-profit organization that provides financial assistance to customers with low or fixed incomes. The company may not recover the $175,000 from ratepayers.

Under the settlement, the company also agreed to make changes to its business practices, particularly those related to service terminations. Interested parties have 20 days from the entry of the order to file comments with the Commission.

The settlement agreement, reached between the PUC’s independent prosecutory staff and Allegheny Power, followed an informal investigation into a May 17, 2005, termination at 2131 N. Oak Lane, State College. According the media reports, a resident of the home was found dead on July 4, 2005. The cause of death was accidental carbon monoxide poisoning from a gasoline powered generator that the household was using to generate electricity.

The prosecutory staff’s position is that Allegheny Power violated provisions of the Public Utility Code and Commission regulations in terminating electric service. Specifically, the prosecutory staff said that the termination was improper and in violation of Chapter 14.

Allegheny Power denies those assertions.

Chapter 14 was passed by the General Assembly as Senate Bill 677 and signed into law as Act 201 of 2004.  Chapter 14 seeks to eliminate the opportunities for customers capable of paying to avoid paying their utility bills, and to provide utilities with the means to reduce their uncollectible accounts.  The law changed the way regulated electric, water and major natural gas utilities handle cash deposits; reconnection of service; termination of service; payment arrangements; and the filing of termination complaints by residential customers.

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 new releases, or more information about the PUC, visit our website at www.puc.state.pa.us.

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Docket No. M-00061952

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