Press Release

PUC Approves Settlement for Lower Rate Increase than Requested by Philadelphia Gas Works

Published on 7/29/2010

Filed under: Gas

HARRISBURG – The Pennsylvania Public Utility Commission (PUC) today voted to approve a settlement approving a lower rate increase than requested by Philadelphia Gas Works (PGW).

The Commission voted 5-0 to approve the settlement, which was agreed to by the Office of Consumer Advocate, the PUC’s Office of Trial Staff and other formal complainants. Commissioner Robert F. Powelson issued a statement.

Under the settlement, the company will increase its annual revenues by $16 million (1.81 percent). The company’s original proposal included an annual revenue increase of $42.5 million (4.8 percent).

According to the settlement, the bill for the average residential customer who uses 92 thousand cubic feet (Mcf) of natural gas a year would increase by $3.58 (2.72 percent) from $131.48 to $135.06. Under the company’s original proposal, the average residential customer who uses 92 Mcf of natural gas a year would have seen an increase of $8.45 (6.5 percent) to $140.02.  

Also under the settlement, PGW will:

• Maintain the $60 million in emergency rate relief granted by the Commission in December 2008;
• Not file for another distribution rate increase for two years;
• Make principal debt repayments monthly, totaling $276.6 million through Fiscal Year 2015;
• Implement a five-year demand side management (DSM) plan with a budget that will not exceed 1 percent of PGW’s total budget;
• Make changes to its low-income program to encourage conservation;
• Relocate meters to outside of a home if it discovers the meter has been tampered with two times in a year; and
• Waive security deposits for some low-income customers.

PGW provides natural gas service to 467,800 residential, 24,900 commercial, 800 industrial, and 900 municipal customers in Philadelphia.  More information on the ratemaking process is available on the Commission’s website.

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 R-2009-2139884

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