Press Release

PUC Approves Annual Gas Cost Recovery Change for a Clarion County Natural Gas Co.

Published on 11/13/2008

Filed under: Gas

HARRISBURG – The Public Utility Commission (PUC) today approved annual cost recovery changes for Pine-Roe Natural Gas Co., Clarion County.

The Commission voted unanimously to approve the company’s Gas Cost Rate (GCR) increase of $0.7312 per thousand cubic feet (Mcf). The total gas cost billing rate increased from $9.6533 to $10.3845 per Mcf. The typical residential customer using 95 Mcf a year will see their annual bill increase by about $69. The rates become effective Dec. 1, 2008.

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 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. M-2008-2072103

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