Press Release

PUC Weighs $10,000 Settlement with PGW Over Termination, Directs Money to Low-Income Program

Published on 8/8/2007

Filed under: Gas

HARRISBURG –The Pennsylvania Public Utility Commission (PUC) today issued for public comment a settlement with Philadelphia Gas Works (PGW) after allegations that the company violated portions of the Public Utility Code and its tariff.

“This Commission continues to monitor the actions by all of its utilities when it comes to the handling of consumer complaints and terminations and to hold companies like PGW accountable when they violate the Public Utility Code,” said Commission Chairman Wendell F. Holland. “But with that said, we also urge customers to call the PUC for help if they are not satisfied with how their complaint to a utility is being addressed. A toll free call to us 800-692-7380 will allow us to ensure companies are complying with the rules and regulations in place to protect consumers.”

The Commission voted 5-0 to issue for public comment the settlement that includes a $10,000 payment to the company’s pilot conservation program, which provides extensive services including heating system replacements for low-income customers. Interested parties have 20 days from the entry of the Order to file comments.

Under the settlement, PGW also will implement steps to improve identification of customer disputes and increase training to customer representatives on the handling of calls after a termination notice as been issued.

On June 1, 2006, the Commission’s independent Prosecutory Staff initiated an informal investigation alleging that PGW failed improperly handled the termination of a non-heating resident who died 11 months later in a house fire.

The Prosecutory Staff said PGW committed the following acts or omissions in violation of its tariff and the state’s Public Utility Code by failing to:

• Explain all of the methods for avoiding termination of service;
• Apply reasonable and adequate service standards when the company terminated service since there was no legitimate basis on which to terminate;
• Restore service to the customer within 24 hours of the erroneous termination; and
• Recognize a customer’s complaint when the customer disputed the termination of service.

The settlement agreement does not represent an admission of any wrongdoing by the company.

Through the informal investigation, the Prosecutory Staff found that PGW terminated service to a residence on April 26, 2005, six days after being unable to gain entry to install an automatic meter reading device. The resident died in a house fire on March 13, 2006.

Company records show that the appointment to install the AMR was cancelled and PGW told the customer to call and reschedule. Following the termination, the owner’s family had contacted PGW to dispute both the termination and PGW’s position that a reconnection fee was needed to restore service. The investigation also showed that PGW had failed to obtain an actual meter reading at the residence since June 1977.

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, or more information about the PUC, visit our Internet homepage www.puc.state.pa.us.

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Docket No. M-00072017

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