Press Release

PUC Approves Gas Cost Rate Change for 11 Natural Gas Companies

Published on 10/21/2010

Filed under: Gas

The reason the three utilities are proposing an increase are due to a significant decrease in refunds of prior period overcollections; increased purchased gas costs; and a shift from a refund in the currently effective GCR to a recoupment in the proposed GCR.

Smaller natural gas utilities file for changes to their GCR annually.  In doing so, the utility company recalculates its rates to reflect what it projects to pay for natural gas during the upcoming 12-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 Numbers M-2010-2203622, M-2010-2201324, M-2010-2201160, M-2010-2200386, M-2010-2202898, M-2010-2202339, M-2010-2201312, M-2010-2202369, M-2010-2203582, M-2010-2203164, M-2010-2203613

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