Press Release

PUC OKs Interim Decrease for North East Heat & Light Co.

Published on 5/14/2009

Filed under: Gas

HARRISBURG – The Pennsylvania Public Utility Commission (PUC) today approved an interim gas cost recovery change for North East Heat & Light Co. (North East).

The Commission voted 5-0 to approve the interim change filed by the company for its 2008-09 Gas Cost Rate (GCR).  Natural gas utilities may file for interim GCRs as a result of higher or lower prices for purchased gas costs.   Due to a decrease in gas costs, the new total gas billing rate for North East is $10.6339 per Mcf, a decrease of $3.7202 per Mcf (26 percent), when compared to the gas billing rate of $14.3541 per Mcf approved by the Commission that became effective Nov. 1, 2008.   The average annual bill for a residential customer using 85 Mcfs will decrease $316.22.  The new rates became effective May 1, 2009, for service rendered on and after that date.

Smaller natural gas utilities file for changes to their GCR annually.  In doing so, the utility company recalculates its rates to reflect what it has paid for natural gas, and includes a reconciliation of undercollections or 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 their consumers 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-2008-2067422

Contact:

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