Press Release

PUC Approves Settlement for Equitable Gas’ Pilot Residential Energy Conservation Program

Published on 11/19/2010

Filed under: Gas

HARRISBURG – The Pennsylvania Public Utility Commission (PUC) today approved a settlement to create a pilot residential energy conservation program for Equitable Gas Co. customers.

The Commission voted 5-0 to approve the settlement, which was reached among the company, the Office of Consumer Advocate, Office of Small Business Advocate and the PUC’s Office of Trial Staff. The program uses about $2.7 million from a Tennessee Gas Pipeline refund to develop the 3-year pilot energy conservation program. The program is designed to provide Equitable’s residential customers with information and, when appropriate, a financial incentive to help improve the energy efficiency of their homes.

The pilot program is to consist of the following elements:

• A residential energy audit/home energy audit program;
• Natural gas appliance incentive/rebate program; and
• Customer education.

On May 15, 1995, Tennessee Gas Pipeline Co. filed a settlement agreement with the Federal Energy Regulatory Commission (FERC), which resolved issues related to Tennessee’s recovery of certain environmental remediation cost in rates.  The settlement established a cost recovery mechanism for recovery of remediation costs for the period beginning Feb. 1, 1992. 

The companies had been paying the environmental surcharge to Tennessee and the amounts paid have been charged to customers, principally through purchased gas cost rates.  Over time, the funds collected through the surcharge exceeded Tennessee’s actual environmental remediation costs for the projects covered by the 1995 settlement. Tennessee subsequently stopped collecting the surcharge from shippers in 2004 but continued to hold the over-collection under the terms of the 1995 settlement. 

Tennessee and the shippers on its system eventually negotiated the refund settlement to address the disposition of the environmental surcharge over-collection.  The refund settlement was approved by FERC, with a minor modification, by an order issued on Nov. 4, 2009.

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 no. R-2010-2171910

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• Press Secretary
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