Press Release

PUC Approves $77.8 Million Refund to Columbia Gas Customers

Published on 10/8/2009

Filed under: Gas

HARRISBURG – The Pennsylvania Public Utility Commission (PUC) today approved a $77.8 million refund for Columbia Gas of Pennsylvania customers.

“While the cost of natural gas is low compared to recent years, it still costs money to heat a home,” said Commission Vice Chairman Tyrone J. Christy. “This economy has forced families to take a closer look at every dollar spent. It’s nice to get something back for a change. Companies such as Columbia are not permitted to make a profit on the natural gas commodity. This refund shows how companies are held accountable for overcollections.”

The Commission voted 5-0 to approve the refunds to residential, commercial and industrial customers who received service between Oct. 1, 2008, and Sept. 30, 2009. The amount received by each customer will vary depending on the usage at that time. According to Columbia’s filing, the overcollection resulted from a large, sustained reduction in natural gas prices, which occurred after Columbia had filed its quarterly adjustment.

Those customers will receive a one-time credit on their bills during the November 2009 billing cycle. If the credit exceeds the customer’s balance, the difference will carry over into the next billing cycle or the customer may request a check for the difference.

Columbia serves about 413,000 customers in 26 counties.

Local natural gas utilities are required to provide reliable natural gas service at the least possible cost – the purchased gas cost rate (PGC). The Commission monitors natural gas companies to ensure the PGC rate they are passing on to the consumers reflects the costs they paid and that every effort was made to purchase the gas for the least possible price.

Natural gas utilities file for annual PGC prices for the supply of natural gas, which reflects the price paid by the utility for natural gas, reconciled with actual sales and costs from previous gas cost projections. By law, the utility cannot make a profit by charging consumers more than what it pays for the natural gas. Because the natural gas markets do fluctuate, the natural gas companies may adjust their PGC rates quarterly.

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.

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Docket Number P-2009-2130769

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• Press Secretary
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