Press Release

PUC Approves Lower Rate Increase than Requested by Valley Energy Inc. of Bradford County

Published on 11/29/2007

Filed under: Gas

HARRISBURG –  The Pennsylvania Public Utility Commission (PUC) today approved a settlement for a lower rate increase than requested by Valley Energy Inc.

The Commission voted 4-0 to approve the settlement, which was reached between the company and the state’s Office of Consumer Advocate, the state’s Office of Small Business Advocate, the PUC’s Office of Trial Staff and consumers who had filed formal complaints. The settlement increases rates by about $297,000 (3.2 percent) a year. The company’s original request was to increase rates by about $638,025 (7 percent).

Under the new base rates, the monthly bill for an average residential customer using 63 hundred cubic feet (Ccf) of natural gas will increase by about $2 from $89 to $91 (3 percent). The original proposal called for rates to increase by about $5 a month to $94 (6 percent)

The increase may become effective Dec. 1, 2007. Under the settlement, the company may not file for a rate increase until Jan. 1, 2010.

The increase would affect about 4,785 residential natural gas customers and about 777 commercial, industrial and transportation natural gas customers in the Boroughs of Athens, Sayre, South Waverly and Towanda; and the Townships of Athens, North Towanda, Ulster and Wysox, all in Bradford County.

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. R-00072349

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