Press Release

PUC OKs Gas Cost Rates for Pike County Light & Power, Valley Energy

Published on 8/27/2009

Filed under: Gas

HARRISBURG – The Pennsylvania Public Utility Commission (PUC) today approved gas cost recovery rates for Pike County Light & Power Co. (PCL&P) and Valley Energy Inc. (Valley Energy).

The Commission voted 5-0 to approve the gas cost rates (GCR) filed by PCL&P and Valley Energy.  The new total gas billing rate for PCL&P will decrease by $5.2176 per Mcf from $10.4550 to $5.2374 per Mcf (49 percent). The average annual bill for a residential customer using 112 Mcf per year will decrease $584.37. 

The new total gas billing rate for Valley Energy will decrease by $5.7215 per Mcf from $11.2083 to $5.4868 per Mcf (51 percent).  The average annual bill for a residential customer using 100 Mcf per year will decrease $572.15. 

The new rates for both companies become effective Sept. 1, 2009.

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 under collections or over collections 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 website at www.puc.state.pa.us.

# # #

Docket Nos.     M-2009-2122723; M-2009-2121761

Contact:

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