Press Release
PUC Approves Gas Cost Rate Change for Two Natural Gas Companies
Published on 8/30/2012
Filed under: Gas
HARRISBURG – The Pennsylvania Public Utility Commission (PUC) today voted to approve changes to the interim gas cost rate (GCR) for two Pennsylvania natural gas companies.
The companies and their approved rates, which will become effective Sept. 1, 2012, are:
Pike County Light & Power
New: $4.4949/Mcf
Current: $5.7482/Mcf
Percent decrease: 21.8 percent
Valley Energy Inc.
New: $4.3734/Mcf
Current: $6.3970/Mcf
Percent decrease: 31.6 percent
The primary reasons for the decreases are lower projected gas costs and increased refunding of prior overcollections. 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.pa.gov.
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Docket Nos. M-2012-2317198; M-2012-2317848
Contact:
-
Denise McCracken
Senior Communications Specialist
717-787-5722
demccracken@pa.gov
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