Press Release

PUC Approves Gas Cost Rate Decrease for Clarion River Gas

Published on 1/26/2007

Filed under: Gas

HARRISBURG – The Pennsylvania Public Utility Commission (PUC) today approved a decrease in the gas cost rate (GCR) Clarion River Gas, a division of Orwell Gas Co. Inc.  The company serves about 315 residential customers in Clarion, Elk, Forrest and Jefferson counties.

The Commission approved the decrease by a vote of 4-0. The rates are to become effective with service rendered on or after Feb. 1, 2007.  This was an interim filing for the company, whose annual rates for the fiscal year beginning November 2006 were approved by the Commission Nov. 9, 2006.

The total gas billing rate (GCR plus base gas cost) will decrease $1.87 per thousand cubic feet (Mcf) (18.2 percent) from $10.27 to $8.40 per Mcf. The decrease is attributed to lower prices for natural gas purchases by the company.

Clarion River’s decrease is attributed to lower prices for natural gas and fuel oil than anticipated in the rates effective Nov. 1, 2006.  Natural gas providers file for an annual revision to the GCR, which reflects the change in price paid by the utility for fuel, reconciled with under collections or over collections that result from differences in actual sales revenues and actual fuel costs from the prior year. Companies may apply for interim changes to the GCR if the existing rate is significantly over or under recovering fuel costs.

Local gas utilities are required to provide reliable natural gas service at the least possible cost. Every natural gas utility company is audited annually by the PUC to ensure the GCR they are passing on to the consumers reflects the costs they paid and that every effort was made to purchase the gas for the least possible price. If the utility is found to have acted imprudently, if any costs are deemed not to have been made at least cost, or if the utility has over-collected its costs, the Commission has the authority to make adjustments in the annual GCR proceeding and order refunds to customers.

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 No. M-00061987

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