Press Release

PUC Approves Lower Rate Increase than Requested by Columbia Gas

Published on 12/3/2015

Filed under: Gas

HARRISBURG – The Pennsylvania Public Utility Commission (PUC) today approved a settlement that reduces a base rate increase request filed by Columbia Gas of Pennsylvania (Columbia) on March 19, 2015.

The Commission voted 5-0 to approve the settlement, which reduces Columbia’s rate increase request by nearly 40 percent and resolves all but one of the issues related to the company’s request. The final issue, involving a dispute between Columbia and Penn State University over the proposed abandonment of a distribution line known as the Snowshoe Lateral, was separated from the rate case and will be addressed during future proceedings before the Commission.  In addressing this final issue, the Commission modified the Recommended Decision of Administrative Law Judge Mary D. Long and approved a separate settlement removing Penn State’s concerns about the Snowshoe Lateral from the base rate case.     

Columbia’s initial request called for a $46.2 million increase in annual base rate operating revenues. Today’s action by the Commission approved a revenue increase of $28 million. The company provides service to approximately 419,000 Pennsylvania consumers in 26 counties.

Additionally, the settlement calls for Columbia’s monthly residential customer charge to remain unchanged, increases funding and eligibility guidelines for the company’s Emergency Repair Program for low-income consumers and enhances efforts to expand the availability of natural gas service.

In a statement at today’s PUC Public Meeting, Commissioner Pamela A. Witmer highlighted the potential impact of those enhanced connection efforts, noting, “they should enable more individuals to receive natural gas service and they serve as a positive step in removing barriers for customers that desire to convert to natural gas.  I believe it is critically important to promote innovative programs to encourage the extension of natural gas into underserved and unserved areas of the Commonwealth.”

Moreover, the settlement addresses the Hardship Fund which provides financial assistance to Columbia’s low-income residential customers. Columbia will be permitted to continue to recover $375,000 for its Hardship Fund through its USP Rider. Columbia’s residential customers, who are not receiving customer assistance program assistance, currently contribute to this fund through the USP Rider.  However, in its next rate base proceeding, Columbia must submit an alternate plan for seeking voluntary sources of hardship funding.  

A joint petition to approve the settlement was supported by numerous parties, including the Commission’s Bureau of Investigation and Enforcement, the Office of Consumer Advocate, the Office of Small Business Advocate, Columbia Industrial Intervenors, Dominion Retail, Inc., Shipley Energy Company, Interstate Gas Supply, Inc., the Retail Energy Supply Association, the Coalition for Affordable Utility Services and Energy Efficiency in Pennsylvania and Columbia Gas of Pennsylvania, Inc.

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” Pennsylvania Public Utility Commission on Facebook for easy access to information on utility issues.

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Docket No.: R-2015-2468056

 

Contact:

• Nils Hagen-Frederiksen
  Press Secretary
  717-418-2701
  nhagen-fre@pa.gov