Press Release

PUC Proposes Lower Rate Increase than Requested by Pittsburgh Company Providing Steam Heat, Hot and Chilled Water Services

Published on 10/19/2006

Filed under: Gas

HARRISBURG – The Public Utility Commission (PUC) today gave conditional approval to a proposed rate increase for a Pittsburgh company that offers steam heat as well as hot and chilled water services.

The Commission voted 4-0 to offer NRG Energy Center Pittsburgh the option to accept the amended amount as presented. If the company does not accept that amount, the proposed increase will be suspended for up to seven months from its proposed effective date and assigned to a PUC administrative law judge for a recommended decision or settlement. A final decision will then be made at a public meeting in Harrisburg.

Under the revised proposal, NRG Pittsburgh would increase rates by $782,540 (14 percent). The company’s original proposal called for a rate increase of about $1.14 million (21 percent).

NRG Pittsburgh provides steam as well as hot and chilled water service to commercial and public customers located on Pittsburgh’s north shore. NRG Pittsburgh serves 17 customers in 18 buildings in Pittsburgh’s 22^nd Ward and serves the Carnegie Science Center. Steam heat typically is produced in a centralized location by heating water to its boiling point, and then distributed to users through a series of underground pipes.

The company said the proposed rate increase was necessary to provide sufficient funds to provide proper maintenance to the system, recover the increased operating cost of the company and provide a fair rate of return on the company’s investment.

The Pennsylvania Public Utility Commission balances the needs of consumers and utilities to ensure safe and reliable utility service at reasonable rates; protect the public interest; educate consumers to make independent and informed utility choices; further economic development; and foster new technologies and competitive markets in an environmentally sound manner.

For recent new releases, audio of select Commission proceedings or more information about the PUC, visit our website at www.puc.state.pa.us.

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Docket No. R-00061435

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