Press Release

PUC Reinstates Gas Cost Rate, Approves Rate Changes for Butler County Gas Co.

Published on 2/5/2009

Filed under: Gas

HARRISBURG – The Pennsylvania Public Utility Commission (PUC) today reinstated a gas cost recovery (GCR) rate and allowed changes to that rate for Wally Gas Co.

The Commission voted 5-0 to reinstate the GCR and allow the company to increase the commodity charge from $4.3127 per thousand cubic feet (Mcf) to $10.2676 per Mcf.  The GCR has not been adjusted in about 10 years. The average bill for a residential customer using 7 Mcf a month will increase about $42 (100 percent) a month from $40 to $82.

The company’s GCR was suspended in 2000 as part of a settlement agreement between the company and the PUC’s independent prosecutory staff. The settlement was reached after prosecutory staff filed a complaint against the company for persistently failing to comply with PUC rules and regulations.

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.

Wally Gas serves about 192 residential and 8 commercial customers in Chicora, Butler County.

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. P-2008-2079702; R-2008-2079698

Contact:

• Press Secretary
  717-787-5722