Press Release

PUC Approves Annual Cost Recovery Increase for Harrisburg Steam Heat Provider

Published on 8/17/2006

Filed under: Gas

HARRISBURG, Pa. – The Pennsylvania Public Utility Commission (PUC) today approved an increase in the steam cost rate (SCR) for NRG Energy Center Harrisburg.

The Commission approved the rates, which will go into effect Sept. 1, 2006, by a vote of 5-0.

The total steam cost billing rate (SCR plus base gas cost) for rate schedule HSW-1 will increase $4.29 per thousands pounds (Mlb) from $17.49 to $21.78 (24.5 percent). For rate schedule HSW-2, the total steam cost billing rate will increase $2.92 per Mlb from $13.49 to $16.41 (21.6 percent).

NRG provides steam heat for commercial, institutional and residential entities. It serves 270 downtown Harrisburg customers totaling 11 million square feet of space. Steam heat typically is produced in a centralized location by heating water to its boiling point, then distributed to users through a series of underground pipes.

The steam generation plants may be fueled by natural gas and oil. By law, the company is permitted to pass fuel costs related to powering the steam generation plant on to customers. The company is not permitted to charge consumers more than what it pays for fuel, but rather must charge a dollar-for-dollar pass through of those costs.

NRG’s increase is attributed to anticipated higher prices for natural gas and fuel oil for the fiscal year beginning Sept. 1, 2006 and recovery of under-recovered fuel costs from the previous year.  Steam heat providers file for an annual revision to the SCR, which reflects the change in price paid by the utility for fuel, reconciled with under collections or over collections that result from differences in actual sales revenues and actual fuel costs from the prior year.

The Pennsylvania Public Utility Commission ensures safe, reliable and reasonably priced electric, natural gas, water, telephone and transportation service for Pennsylvania consumers, by regulating public utilities and by serving as stewards of competition. For recent news releases, or more information about the PUC, visit our website at www.puc.state.pa.us.

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Docket No. M-00061965

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