Press Release

PUC Approves Pilot Programs for Peoples Natural Gas and Peoples Natural Gas-Equitable Divisions to Increase Affordability, Access to Natural Gas

Published on 11/9/2016

Filed under: Gas

HARRISBURG – The Pennsylvania Public Utility Commission (PUC) today approved a settlement for a new five-year pilot program that changes the method of payment for customers of Peoples Natural Gas Company LLC (Peoples) and Peoples Natural Gas Company LLC – Equitable Division (Peoples-Equitable) seeking gas line extension projects.

The Commission voted 5-0 to approve the “Rate MLX” program in the Peoples and Peoples-Equitable service territories, replacing the companies’ existing Service Expansion Program (Rider SET).  While Rider SET allowed customers to pay a fixed $55 monthly fee to extend gas service, the new Rate MLX provides for a higher delivery rate for customers to pay for system expansion costs.  The companies claimed that customers were more receptive to paying for their share of pipeline expansion costs through higher delivery charges.

The MLX delivery rates will be based on a nine-tiered delivery rate structure, set by the companies for each project area based on the minimum delivery rate required to cover project costs.  The settlement includes important customer protections to ensure that participating customers are not overcharged, including provisions allowing Rate MLX customers to be moved to a lower rate MLX tier if the current tier is deemed too high, and ensuring Rate MLX is discontinued when project costs have been recouped.  Projects will be examined periodically to determine whether the MLX delivery rates should be adjusted.

Under most natural gas company tariffs, a customer who wishes to have natural gas service extended to their property must pay up-front the cost of that line extension, which can run in the thousands of dollars. In this case, the Joint Petition for Settlement was reached among Peoples; Peoples-Equitable; the PUC’s independent Bureau of Investigation and Enforcement; the Office of Consumer Advocate; and the Office of Small Business Advocate.

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-2016-2542918
                        R-2016-2542923

Contact:

• David Hixson
  Deputy Press Secretary
  717-772-2766
  dhixson@pa.gov