Press Release

PUC Approves Gas Cost Rate Changes for 10 Natural Gas Companies

Published on 10/24/2012

Filed under: Gas

HARRISBURG – The Pennsylvania Public Utility Commission (PUC) today voted to approve changes to the annual gas cost rate (GCR) for 10 Pennsylvania natural gas companies.

The companies and their approved rates, which will become effective Nov. 1, 2012, are:

Andreassi Gas Co.

New: $6.1505/Mcf

Current: $7.0416/Mcf

Percent change: -12.7 percent

Chartiers Natural Gas Co.

New: $3.9180/Mcf

Current: $4.8234/Mcf

Percent change: -18.8 percent

Clarion River Gas

New: $2.8458/Mcf

Current: $6.6554/Mcf

Percent change: -57.2 percent

Herman Reimer Gas Co.

New: $0.4283/Mcf

Current: $2.1961/Mcf

Percent change: -80.5 percent

Herman Oil and Gas Co. Inc.

New: $4.0650/Mcf

Current: $4.5444/Mcf

Percent change: -10.6 percent

North East Heat and Light Co.

New: $0.5479/Ccf

Current: $0.6959/Ccf

Percent change: -21.3 percent

Pine Roe Natural Gas Co.

New: $3.6268/Mcf

Current: $7.9421/Mcf

Percent change: -54.3 percent

Sigel Gas Co.

New: $0.47950/Ccf

Current: $0.55391/Ccf

Percent change:  -13.4 percent

Walker Gas

New: $4.3945/Mcf

Current: $6.0642/Mcf

Percent change: -27.5 percent

Wally Gas Co. 

New: $8.8043/Mcf

Current: $8.7381/Mcf

Percent change: 0.8 percent

The primary reason for the Wally Gas Co. increase was a change from refunding an overcollection in the previous GCR to the recovery of an undercollection in the current GCR. 

One gas utility is proposing an increase to their total gas billing rate, and nine utilities are proposing a decrease to their total gas billing rate. 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, video and 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-2012-2327605; M-2012-2327759; M-2012-2328401; M-2012-2327119; M-2012-2327101; M-2012-2328456; M-2012-2326451; M-2012-2329353; M-2012-2328406 and M-2012-2326449

Contact:

• Press Secretary
  717-787-5722