Press Release

PUC OKs Annual Cost Recovery Increases for Two Natural Gas Companies

Published on 8/21/2008

Filed under: Gas

HARRISBURG – The Pennsylvania Public Utility Commission (PUC) today approved annual cost recovery changes for two natural gas companies.

The Commission voted unanimously to approve the Gas Cost Rate (GCR) changes for the companies. Smaller natural gas utilities may file for changes to their GCR annually. In doing so, the utility company recalculates its rates to reflect what it has paid for natural gas, and includes a reconciliation of undercollections or overcollections resulting from differences in actual sales and actual gas costs from prior projections. 

The Commission has the ability to make adjustments in the annual GCR proceeding and order refunds to customers if the utility is found to have acted imprudently.

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 their consumers reflects the costs the company paid and that every effort was made to purchase the natural gas for the least possible price.

The companies and their approved rates, which are effective Sept. 1, 2008, are:

Valley Energy Inc.
New: $11.2083/Mcf
Current: $7.8865/Mcf
Percent change: 42.1

Pike County Light & Power
New: $10.4550/Mcf
Current: $10.1715/Mcf
Percent change: 2.8

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 Nos.     M-2008-2055630; M-2008-2055656

Contact:

• Press Secretary
  717-787-5722