Press Release

PUC Approves Annual Gas Cost Recovery Changes for 8 Natural Gas Companies

Published on 10/23/2008

Filed under: Gas

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

The Commission voted 5-0 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 is projecting to pay for natural gas, and includes a reconciliation of undercollections and 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 customers 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 Nov 1, 2008, are:

Sigel Gas Co. Inc.
New: $8.1482/Mcf
Current: $7.6840/Mcf
Percent change: 6

Chartiers Natural Gas Co.
New: $5.7557/Mcf
Current: $4.0752/Mcf
Percent change: 41.2

Andreassi Gas Co.
New: $11.8062/Mcf
Current: $7.4915/Mcf
Percent change: 57.6

Sergeant Gas Co.
New: $3.9439/Mcf
Current: $3.4928/Mcf
Percent change: 12.9

Herman Oil & Gas Co. Inc.
New: $10.3615/Mcf
Current: $7.3299/Mcf
Percent change: 41.4

North East Heat & Light Co. 
New: $14.3541/Mcf
Current: $11.5488/Mcf
Percent change: 24.3

ClarionRiverGas - Orwell 
New: $10.7982/Mcf
Current: $8.3054/Mcf
Percent change: 30

Walker Gas Co. – Orwell
New: $8.9408/Mcf
Current: 8.9027/Mcf
Percent change: .4

Two companies failed to submit their annual GCR statements in a timely manner. Customers of Herman Riemer Gas Co. and Pine Roe Natural Gas Co. will continue to pay their current rate. Herman customers will pay $7.5771/Mcf. Pine Roe customers will pay $9.6533/Mcf.

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-2008-2066675; M-2008-2067409; M-2008-2067413; M-2008-2067419; M-2008-2067421; M-2008-2067422; M-2008-2068860; M-2008-2068861

Contact:

• Denise McCracken
  Senior Communications Specialist
  717-787-5722
  demccracken@pa.gov