Press Release

PUC Approves Agreement for Lower Rate than Requested by PG Energy (UGI Penn)

Published on 11/30/2006

Filed under: Gas

HARRISBURG – The Public Utility Commission (PUC) today approved an agreement for a lower rate increase than requested by PG Energy, now UGI Penn.

The Commission voted unanimously to approve the settlement, under which the company will raise rates by about $12.5 million (4 percent). Commission Vice Chairman James Cawley issued a statement.

The bill for an average residential customer using 97 thousand cubic feet (Mcf) of natural gas will increase from $140.62 to $146.67 a month, according to the settlement. The company’s original proposal called for a rate increase of about $29.8 million (8.6 percent) with average residential bills increasing to about $152.77 a month.

The bill for an average Honesdale residential customer using 9,700 cubic feet of natural gas will go from $126.68 a month to $131.76 a month, according to the settlement. The original proposal called for the Honesdale residential bills to increase to about $146.56 a month.

The settlement also called for the company to double the size of its Low Income Usage Reduction Program (LIURP) to $720,000 per year. The spending limit per LIURP weatherization job will be $2,500 for customers whose annual usage is less than 200 thousand cubic feet (Mcf) and $3,000 for those who usage exceeds 200 Mcf.

The rates go into effect on one day’s notice of the company filing its new tariff with the Commission. The company cannot file for another base rate increase before Jan. 1, 2008, according to the settlement, which was reached between the company and the formal complainants in the case including the state’s Office of Consumer Advocate, the state’s Office of Small Business Advocate, the Commission on Economic Opportunity and the Commission’s Office of Trial Staff.

In August 2006, the Commission approved the settlement agreement for UGI Utilities Inc. to purchase PG Energy. PG Energy then became UGI Penn. The company serves more than 158,000 customers in 13 counties in northeastern and central Pennsylvania including the cities of Scranton and Williamsport.

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 news releases, audio of select Commission proceedings or more information about the PUC, visit our Web site at www.puc.state.pa.us.

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Docket Nos. R-00061365, R-00061365C0004 and R-00061365C0006

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