Press Release

PUC Forms Task Force to Review Operation of Small, Jurisdictional Natural Gas Utilities

Published on 1/15/2009

Filed under: Gas

HARRISBURG – The Pennsylvania Public Utility Commission (PUC) today formed a task force to review the operations of small natural gas utilities under PUC jurisdiction, starting with a Butler County utility that experienced service problems in December.

“Our primary responsibility is to ensure safe and adequate service for our residents,” said Commission Vice Chairman Tyrone J. Christy. “Conducting a full scale review of our small natural gas utilities allow us to do just that. The logical place to start is with Herman Oil & Gas, which had operational problems in December. I look forward to working with these companies to continue to improve service.”

The Commission voted unanimously on a motion by Vice Chairman Christy and Commissioner Wayne E. Gardner to establish a task force to evaluate each small natural gas utility under PUC jurisdiction to determine the sufficiency of the company’s current rates as well as the ability of its distribution system to provide adequate and safe service to its customers.

The task force is to begin with a review of Herman Oil & Gas Co., Butler County, with findings and recommendations to be provided to the Commission by March 16, 2009.  On Dec. 21, 2008, about 30 Herman customers began experiencing periods of either low pressure or no service.  The problems were caused by a pressure problem in a gas line and frozen well heads. Service was restored Dec. 23, 2008. Herman has about 370 customers.

Small natural gas utilities are defined by the state’s Public Utility Code as having intrastate operating revenues under $40 million. The PUC has 21 of those companies under its jurisdiction.

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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