Press Release

PUC Approves Lower Rate Increase than Requested by Columbia Gas

Published on 10/23/2008

Filed under: Gas

HARRISBURG - The Pennsylvania Public Utility Commission (PUC) voted today to approve a settlement for a lower rate increase than proposed by Columbia Gas of Pennsylvania Inc. (Columbia).  

The Commission voted 5-0 to approve a motion by PUC Chairman James H. Cawley to approve the settlement but at the same time encourage the company to re-file an appropriate purchase of receivables plan by the end of the year. Columbia was further encouraged to work with the state's Office of Consumer Advocate and natural gas suppliers to work amicably together on achieving a compromise plan consistent with other Commission action.

Vice Chairman Tyrone J. Christy issued a statement.

According to the settlement, the company will increase rates by $41.5 million.  The company was originally requesting an increase of $58.9 million.  The bills for customers with a monthly usage of about 7.2 Mcf will increase from $127 to $135 a month (6.3 percent). The increase will go into effect Oct. 28, 2008.

Under the settlement Columbia will: 

• Increase its annual funding for Low Income Usage Reduction Programs (LIURP) from $1.7 million to $3 million; 
• Not file for another general rate increase prior to Jan. 1, 2009;
• Improve response time to calls;
• Take steps to improve its price to compare for customer-choice programs; and
• Increase the customer charge from $10.81 to $11.50.

Columbia provides natural gas service to approximately 373,000 residential and 38,000 commercial customers in Adams, Allegheny, Armstrong, Beaver, Bedford, Butler, Centre, Clarion, Crawford, Elk, Fayette, Franklin, Fulton, Greene, Indiana, Jefferson, Lawrence, McKean, Mercer, Somerset, Venango, Warren, Washington, Westmoreland and York counties.

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.  

Docket Nos. R-2008-2011621; C-2008-2025885; C-2008-2027599; C-2008-2027645; C-2008-2027613; C-2008-2027649; C-2008-2034712; C-2008-2034988; 2008-2034323; C-2008-2034949

Contact:

• Press Secretary
  717-787-5722