Press Release

PUC Approves Lower Rate Increase than Requested for Columbia Gas of Pennsylvania Inc.

Published on 11/13/2014

Filed under: Gas

HARRISBURG – The Pennsylvania Public Utility Commission (PUC) today approved a joint settlement for a lower rate increase than requested by Columbia Gas of Pennsylvania Inc. (Columbia) for its natural gas distribution rates.

The Commission voted 5-0 to approve the joint settlement which was reached among the company, the Commission’s independent Bureau of Investigation and Enforcement; the Office of Consumer Advocate; the Office of Small Business Advocate; Columbia Industrial Intervenors; Interstate Gas Supply Inc. d/b/a IGS Energy; Shipley Energy Company and Dominion Retail Inc. d/b/a Dominion Energy Solutions; the Pennsylvania State University; and the Coalition for Affordable Utility Services and Energy Efficiency in Pennsylvania.

According to the settlement, the company will increase its overall annual revenue by $32.5 million (6.65 percent). The company’s original proposal asked for an annual increase in rates of $54.1 million (11.09 percent).

Under the settlement, the average total monthly bill for a residential customer using 72 therms of gas per month will increase by $5.59 from $87.12 to $92.71 (6.45 percent). Columbia provides natural gas service to approximately 417,000 residential, commercial and industrial customers in 26 counties in Pennsylvania.

A motion filed by Commissioner Pamela A. Witmer proposed clarification on the terms of the agreement, specifically the return on equity (ROE) to be used for Distribution System Improvement Charge (DSIC) computation purposes.

“Because there is no clear statement of equity return rate for DSIC computation within this base rate proceeding, I recommend that the Company use the rate calculation instituted in our approval of Columbia’s DSIC Petition,” said Commissioner Witmer in her motion. “I see no reason to change course here and recommend that Columbia use the most recent Quarterly Report (ending Sept. 30, 2014) in order to set its ROE for DSIC purposes. I also want to clarify that on a going-forward basis, Columbia should update its ROE for DSIC purposes consistent with any changes to the ROE in the Quarterly Report.”

More information on the ratemaking process is available on the Commission’s website.

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.: R-2014-2406274 C-2014-2413419 C-2014-2417238 C-2014-2418801 C-2014-2416868 C-2014-2416873 C-2014-2422692 C-2014-2422693 C-2014-2429053

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