Press Release

PUC Conducts Binding Poll on PGW Rate Increase Request, Maintains Customer Service Initiative Meeting with Company

Published on 9/13/2007

Filed under: Gas

HARRISBURG –The Pennsylvania Public Utility Commission (PUC) today conducted a binding poll on the issues related to the request by Philadelphia Gas Works (PGW) to raise rates.

“I have said it time and time again that the long-term financial health of PGW and the impact on consumers is the No. 1 energy issue in Philadelphia,” said Commission Chairman Wendell F. Holland in a statement. “The ongoing challenge that faces this Commission is to strike a balance between the needs of this unique consumer base with the fiscal needs of this company. I agree the $25 million increase recommended by the Administrative Law Judges is supported by the record.  However, what is most troubling is the manner that some parties propose that it be allocated.  Despite a recent Commonwealth Court decision, I believe that our hands are not tied and the entire revenue increase need not be allocated to residential consumers.”

Vice Chairman James Cawley made a motion that is designed to remove barriers to natural gas supplier competition in the PGW service area. The motion passed unanimously. Vice Chairman Cawley also issued a statement. Commissioner Tyrone Christy issued a statement on a number of issues in the case.

The result of the poll is consistent with the Recommended Decision of the Administrative Law Judges, under which PGW will implement a rate increase of $25 million. The company’s original proposal requested a $100 million rate increase. PGW serves about 496,000 customers in Philadelphia.

The poll is designed to provide a mechanism for the Commission to resolve the contested issues of the case in a public forum. The Commissioners based their findings on each issue on the record developed in the proceeding and the briefs and exceptions presented by the parties in the case.  Staff will craft an Order based on the results of the poll, and a Final Order then will be entered.

On Dec. 22, 2006, PGW filed to increase base rates by about $100 million (11 percent). Under the company’s proposal, the annual bill for an average customer using about 89 mcf of natural gas by about $160. The average annual residential bill would increase from about $1,727 to $1,887 (9.3 percent).

With the Commission’s action, the annual bill for an average customer using about 89 mcf of natural gas will increase by about $57. The average annual residential bill will increase to about $1,784 (3.3 percent).

In a separate action, the Commission also denied a petition by the company to end meetings between the Commission’s Bureau of Consumer Services, the state’s Office of Consumer Advocate and Philadelphia Community Legal Services. The meetings, known as Customer Service Initiative meetings, were designed to provide progress reports and other data about collection practices and customer service.

The Commission found that the meetings are in the public interest and quarterly meetings will replace the monthly meetings. The meetings may return to monthly if warranted.

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.

# # #

Docket No. R-00061931; P-00042030; R-00049157; M-00021612; P-00032061

Contact:

• Press Secretary
  717-787-5722