Press Release

PUC Approves Merger of Equitable Gas, Peoples Natural Gas, Transfer of Certain Pipeline Assets

Published on 11/14/2013

Filed under: Gas

HARRISBURG – The Pennsylvania Public Utility Commission (PUC) today approved a settlement that merges Equitable Gas Co. with Peoples Natural Gas Co. and transfers certain pipeline assets from Peoples to EQT Corp., Equitable’s parent company.

The Commission voted 5-0 to approve the PUC Administrative Law Judge’s Initial Decision. The Initial Decision ruled that the settlement reached among the companies, the PUC Bureau of Investigation & Enforcement, the Office of Consumer Advocate as well as various retail gas suppliers, unions and other interested parties, was in the public interest.

“The merger represents a win for consumers,” said Commissioner Pamela A. Witmer in issuing a statement. “Allowing each company to focus on its core business will improve system safety and reliability while saving ratepayers money.”

Commissioner James H. Cawley also issued a statement.

The settlement also includes provisions that:

• Accelerate the replacement of higher risk pipe with a revised focus solely on its distribution and gathering assets;
• Achieve and maintain performance in certain customer service metrics for the next five years;
• Continue to fund Equitable’s Customer Assistance Program consistent with its needs analysis approved in conjunction with Equitable’s PUC-approved Universal Service Plan;
• Provide corporate contributions and community support in southwestern Pennsylvania for the next five years that are at least equivalent to the amount provided by Peoples ($1 million) and Equitable ($400,000) in 2012;
• Return services currently performed for Equitable outside of the Equitable service area in Pennsylvania, such as call center support, customer billing and payment and customer relations, to the Peoples service area within five years;
• Convene a collaborative conference with interested parties within 12 months of closing in order to develop a strategy to further promote retail natural gas supply competition in the Peoples/Equitable service areas; and
• Organize and engage in a collaborative of demand side management stakeholders within 36 months.

The companies filed the joint application for all of the necessary PUC approvals on March 19, 2013.

The Pennsylvania Public Utility Commission balances the needs of consumers and utilities; ensures safe and reliable utility service at reasonable rates; protects the public interest; educates consumers to make independent and informed utility choices; furthers economic development; and fosters new technologies and competitive markets in an environmentally sound manner.

For recent news releases and video of select Commission proceedings or more information about the PUC, visit our website at www.puc.pa.gov. Follow the PUC on Twitter – @PA_PUC for all things utility.  “Like” PAPowerSwitch on Facebook for easy access to information on electric shopping.

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Docket Nos. A-2013-2353647, A-2013-2353649 and A-2013-2353651

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