Press Release

PUC Approves Interim Gas Cost Rate Change for Butler County Gas Co.

Published on 12/1/2011

Filed under: Gas

HARRISBURG – The Pennsylvania Public Utility Commission (PUC) today approved the interim gas cost rate (GCR) for Herman Oil and Gas Co. (Herman Oil) effective Dec. 1, 2011.

New: $4.5444/Mcf

Current: $3.9356/Mcf

Percent change: 15.5 percent

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.

When filing an annual GCR, a 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.

Additionally, natural gas companies are allowed to file for an interim rate when appropriate.  In this particular case, Herman Oil’s GCR that became effective Nov. 1, 2011, was designed to remain in effect for a 12-month period.  The Company filed a revised GCR effective Dec. 1, 2011, due to the correction of an estimate for an audit finding refund included in the filing effective Nov. 1, 2011.  As shown above, the resulting correction increased Herman Oil’s GCR by 15.5 percent.

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 M-2011-2267510

Contact:

• Denise McCracken
  Senior Communications Specialist
  717-787-5722
  demccracken@pa.gov