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Press Release

PUC Approves Annual Cost Recovery Changes for 9 Natural Gas Companies, Reject 1

Published on 11/9/2006

Filed under: Gas

HARRISBURG – The Public Utility Commission (PUC) today approved annual cost recovery decreases for seven natural gas companies and increases for two natural gas companies while rejecting another company’s proposal.

The Commission voted 5-0 to approve the Gas Cost Rate (GCR) changes for the companies. Smaller natural gas utilities may file for changes to their GCR annually. In doing so, the utility company recalculates its rates to reflect what it has paid for natural gas, and includes a reconciliation of undercollections or overcollections resulting from differences in actual sales and actual gas costs from prior projections. 

The Commission has the ability to make adjustments in the annual GCR proceeding and order refunds to customers if the utility is found to have acted imprudently.

Gas utilities are required to provide reliable natural gas service at the least possible cost. Every natural gas utility company is audited annually by the PUC to ensure the GCR they are passing on to its consumers reflects the costs the company paid and that every effort was made to purchase the natural gas for the least possible price.

The companies and their approved rates, which are effective Nov. 1, 2006, are:

Andreassi Gas Co.
Proposed: $7.9498/Mcf
Current: 10.4269/Mcf
Percent change: -23.8
Average usage: 78 Mcf

Chartiers Natural Gas Co.
Proposed: $4.9660/Mcf
Current: 5.4045/Mcf
Percent change: -8.1
Average usage: 71 Mcf

Clarion River Gas Inc. – Orwell
Proposed: $10.2714/Mcf
Current: 11.2223/Mcf
Percent change: -8.5
Average usage: 127 Mcf

Herman Riemer Gas Co.
Proposed: $6.4751/Mcf
Current:  8.6235/Mcf
Percent change: -24.9
Average usage: 89 Mcf

North East Heat & Light
Proposed: $12.0767/Mcf
Current:  13.2487/Mcf
Percent change: -8.8
Average usage: 84 Mcf

Pine Roe Natural Gas Co.
Proposed: $9.7621/Mcf
Current: 9.9032/Mcf
Percent change: -1.4
Average usage: 102 Mcf

Sergeant Gas Co. 
Proposed: $3.6017/Mcf
Current: 2.4700/Mcf
Percent change: 45.8
Average usage: 95 Mcf

Sigel Gas Co. 
Proposed: $7.8778/Mcf
Current:  6.8372/Mcf
Percent change: 15.2
Average usage: 77 Mcf

Walker Gas Co. – Orwell
Proposed: $8.5194/Mcf
Current: 10.3262/Mcf
Percent change: -17.5
Average usage: 100 Mcf 

The Commission rejected the proposal by GASCO -- Claysville Division. At a September 2006 meeting the Commission approved the transfer of assets for the company’s Claysville division to Utility Pipeline and Knox Energy Cooperative Association. Because of the timing of that transition, the Commission said sufficient time was not available to review the tariff supplement outlining the new rates.

The Pennsylvania Public Utility Commission balances the needs of consumers and utilities to ensure safe and reliable utility service at reasonable rates; protect the public interest; educate consumers to make independent and informed utility choices; further economic development; and foster new technologies and competitive markets in an environmentally sound manner.

For recent news releases, audio of select Commission proceedings or more information about the PUC, visit our Web site at www.puc.state.pa.us.

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Docket Nos.   M-00061976; M-00061979; M-00061980; M-00061981; M-00061983;

M-00061985; M-00061986; M-00061987; M-00061988; M-00062004

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