Press Release

PUC Approves Settlement Regarding Purchase of Receivables Program and Increase in Rates for T.W. Phillips Gas and Oil Co. Customers

Published on 11/4/2010

Filed under: Gas

HARRISBURG - The Pennsylvania Public Utility Commission today approved a settlement agreement approving a program for the purchase of natural gas supplier accounts receivables for T.W. Phillips Gas and Oil Co. customers (T.W. Phillips), as well an increase in rates for the company.

Chairman James H. Cawley issued a statement.

Under the terms of the settlement, the company will increase its distribution rates by about $8.5 million (8.5 percent).  The company had originally requested to increase in rates by about $12.7 million (12.7 percent).

Under the settlement a typical residential customer using 87 Mcf annually will see their average monthly bill increase $9.70 from $93.65 to 103.35 (10.4 percent).  Under the original proposal, customers would have seen an increase of $14.44 (15.4 percent). On June 16, 2010, the Commission voted 4-0 to investigate the request for increase. 

Also under the settlement, the company is permitted to establish a purchase of receivables (POR) program. 

The program:

• Is to be voluntary;
• May be terminated at the company’s discretion;
• Must not reject new customers based upon credit-related issues or payment histories and cannot require a separate security deposit;
• Will be implemented within three months of a request by an natural gas supplier (NGS) actively serving Choice customers on the company’s system; and
• Does not provide for reconciliation of uncollectible NGS receivables. 

The settlement stems from Commission-issued guidelines, for the design and operation of purchase of receivable programs.

The Commission voted 5-0 on Dec. 18, 2009, to create POR guidelines to assist natural gas distribution companies (NGDCs) in the voluntary creation of POR programs. The Commission has said that POR programs are perhaps the best chance to increase effective competition in Pennsylvania’s retail natural gas supply services market.

T.W. Phillips provides natural gas service to about 60,028 customers in portions of Allegheny, Armstrong, Beaver, Butler, Clarion, Clearfield, Indiana, Jefferson and Westmoreland counties.

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 Web site at www.puc.state.pa.us.

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Docket Nos. P-2009-2099192 and R-2010-2167797

Contact:

• Press Secretary
  717-787-5722