Press Release

PUC Approves New Steam Cost Rates for Companies in Harrisburg, Philadelphia

Published on 8/16/2010

Filed under: Gas

HARRISBURG – The Pennsylvania Public Utility Commission (PUC) today approved steam cost rates (SCR) for NRG Energy Center Harrisburg and Trigen – Philadelphia Energy Corp.

The Commission voted 5-0 to approve the rates, which will become effective with service rendered on or after Sept. 1, 2010.

The NRG Harrisburg SCR will decrease by $3.00 per Mlb, or 15.8%, for rate schedule HSW-1 large customers from $19.00 to $16.00 per Mlb. For these customers, the company may adjust their SCR monthly. The SCR will decrease $3.59 per Mlb, or 20.2%, for rate schedule HSW-1 small customers from $17.74 to $14.15 per Mlb. The SCR will decrease $5.87 per Mlb, or 36.5%, for rate schedule HSW-2 customers from $16.07 to $10.20 per Mlb.

Pursuant to the SCR rider, Trigen-Philadelphia is required to recalculate its SCR monthly to reflect changes in fuel and purchased steam costs. Each month’s recalculated rate is submitted to the Commission. Trigen-Philadelphia serves about 275 commercial, government, institutional and hospitality customers and one residential customer in the central business district of Philadelphia.

The Bureau of Audits reviews this monthly recalculation. Additionally, as with other SCRs, the company’s SCR is subject to annual reconciliation and audit.

Steam generation plants may be fueled by natural gas and oil. By law, the company is permitted to pass fuel costs related to powering the steam generation plant on to customers. The company is not permitted to charge consumers more than what it pays for fuel, but rather must pass through such costs to customers dollar-for-dollar.

These decreases are attributed to lower anticipated prices for natural gas and fuel oil in the current rates.  Steam heat providers file for an annual revision to the SCR, which reflects the change in price paid by the utility for fuel, reconciled with under collections or over collections that result from differences in actual sales revenues and actual fuel costs from the prior year.

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 Nos. M-2010-2191548 (NRG); M-2010-2191963 (Trigen)

Contact:

• Press Secretary
  717-787-5722