Press Release

PUC Approves a Decrease in Gas Cost Rate for Butler County Natural Gas Co.

Published on 11/6/2009

Filed under: Gas

HARRISBURG – The Pennsylvania Public Utility Commission (PUC) today approved changes to the gas cost rate (GCR) for Herman Oil and Gas Co., Inc.

The new total gas billing rate will decrease by $1.0815 per Mcf from $10.3615 to $9.2800 per Mcf (10.4 percent).  The average annual bill for a residential customer using 79.6 Mcf per year will decrease $86.09.

The new rates for the company became effective with service rendered on and after Nov. 1, 2009.

Smaller natural gas utilities file for changes to their GCR annually.  In doing so, the utility companies recalculate rates to reflect price projections for natural gas during the upcoming twelve-month GCR period, 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 website at www.puc.state.pa.us.

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Docket Number M-2009-2137992

Contact:

• Press Secretary
  717-787-5722