Press Release

PUC to Investigate Request by Peoples Natural Gas to Replace Gas Expansion Rider

Published on 6/9/2016

Filed under: Gas

HARRISBURG – The Pennsylvania Public Utility Commission (PUC) today voted to investigate a tariff filing by Peoples Natural Gas Company LLC and Peoples Natural Gas Company LLC – Equitable Division (collectively, Peoples Companies) proposing to change the way they charge customers to extend natural gas service to their homes.

The Commission voted 4-0 to investigate the request. The Commission will determine what, if any, of the request is justified.

On March 26, 2015, the Commission approved a five-year pilot program, Rider Service Expansion Tariff (Rider SET), which allowed eligible residential customers to pay natural gas extension costs through a monthly, fixed cost of $55, rather than an upfront payment in the thousands of dollars.

According to Peoples Companies’ request, monthly payments made available under Rider SET have led to confusion and resistance from customers. Peoples Companies were unable to enroll sufficient new natural gas customers in 2015 to initiate any new service expansion projects.

Peoples Companies have initiated three expansion projects through a Service Expansion Gas Exchange and Interconnection Agreement (Service Expansion Agreement) between Peoples Natural Gas Company LLC and Peoples TWP LLC, approved by the Commission in December 2015.

Peoples Companies are now proposing a new, permanent program, entitled Rate MLX, which would replace its existing pilot Rider SET and eliminate the need to utilize the Service Expansion Agreement for future new projects.

According to the request, Rate MLX would be offered to residential and commercial customers wishing to convert from alternate, more costly fuels to natural gas. As proposed under Rate MLX, Peoples would charge a customized delivery rate, in lieu of the standard tariff delivery rates, which would be unique to and applicable to all customers within each project area. Delivery rates for residential projects could be as low as $6.79 per Mcf or as high as $10.32 per Mcf.

Rate MLX also would eliminate the need for the fixed charge per month under Rider SET.

The request is suspended for up to seven months and will be assigned to the Office of Administrative Law Judge for public hearings and a recommended decision or settlement. A final decision must be made by Dec. 28, 2016.

Peoples Companies provide natural gas distribution, supply and transportation service to approximately 700,000 customers in western Pennsylvania.

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.

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Docket Nos. R-2016-2542918, R-2016-2542923

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