Press Release

PUC Approves New Steam Cost Rates for Companies in Harrisburg, Philadelphia

Published on 8/30/2007

Filed under: Electric

HARRISBURG –The Pennsylvania Public Utility Commission (PUC) today approved steam cost rates (SCR) for NRG Energy Center Harrisburg and Trigen – Philadelphia Energy Corp.

The Commission approved the rates by a vote of 5-0. They are to become effective with service rendered on or after Sept. 1, 2007.

The NRG Harrisburg total steam billing rate (SCR plus base gas cost) will decrease $.17 per thousand pounds (Mlb) (.9 percent) for rate schedule HSW-1 customers from $19.89 to $19.72 per Mlb. The total steam billing rate (SCR plus base gas cost) will decrease $.47 per Mlb (3.2 percent) for rate schedule HSW-2 customers from $14.90 to $14.43 per Mlb.

NRG provides steam heat for commercial, institutional and residential entities. It serves 252 downtown Harrisburg customers. 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.

Trigen-Philadelphia’s SCR rider requires it to recalculate its SCR monthly to reflect changes in fuel and purchased steam costs. Each month’s recalculated rate is submitted to the Commission. The Bureau of Audits reviews this monthly recalculation. Additionally, as with other SCRs, the company’s SCR is subject to annual reconciliation and audit. Trigen-Philadelphia serves more than 300 commercial, government, institutional and hospitality customers in the central business district of Philadelphia.

Steam generation plants may be fueled by natural gas and oil. By law, the company is permitted to pass fuel costs related to powering the steam generation plant on to customers. The company is not permitted to charge consumers more than what it pays for fuel, but rather must charge a dollar-for-dollar pass through of those costs.

These decreases are attributed to lower prices for natural gas and fuel oil than anticipated in the rates effective Sept. 1, 2006.  Steam heat providers file for an annual revision to the SCR, 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 SCR if the existing rate is significantly over or under recovering fuel costs.

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

# # #

Docket No. M-00072032

Contact:

• Press Secretary
  717-787-5722