Press Release

PUC Approves $125,000 Settlement Agreement with Equitable Gas

Published on 5/10/2012

Filed under: Gas

HARRISBURG – The Pennsylvania Public Utility Commission (PUC) today approved a $125,000 settlement with Equitable Gas Co. over dealings with its affiliated companies.

The Commission voted 5-0 to approve the $125,000 settlement between the PUC’s independent Prosecutory Staff and Equitable Gas. The settlement follows an investigation into Equitable’s transfer of intellectual property (the assignment of the Equitable Gas Co. name and associated trademarks, service marks, trade names, and common law trademarks) to an affiliated company; an agreement with an affiliated company for the payment of royalty amounts; and Equitable’s failure to seek Commission approval for those transactions.

Under the settlement, Equitable will pay a $40,000 civil penalty and make an $85,000 contribution to its Hardship Repair Fund, which provides monetary assistance to low-income customers who are without service due to house or service line leakage or malfunctioning heating equipment. The money cannot be recovered from ratepayers, according to the settlement.

On Jan 27, 2012, the Commission issued the settlement between the PUC’s independent Prosecutory Staff and Equitable for comment. In response to a statement issued by Commissioner Wayne E. Gardner and Commissioner James H. Cawley, the parties also addressed whether the transfers to Equitable’s affiliate had an impact on Equitable’s rates established in a 2008 base rate investigation.   As reflected in the Commission’s Order, the parties concur that those transactions were not claimed for ratemaking purposes.

Equitable provides natural gas service to about 240,000 customers in Allegheny, Armstrong, Butler, Clarion, Fayette, Greene, Indiana, Jefferson, Washington 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 website at www.puc.state.pa.us.

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Docket No. M-2011-2185982

Contact:

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