Press Release

PUC OKs Interim Gas Cost Decrease for Clarion River Gas

Published on 3/16/2006

Filed under: Gas

HARRISBURG – The Pennsylvania Public Utility Commission (PUC) today approved an interim gas cost rate (GCR) decrease for Clarion River Gas.

“As we are seeing declines in the prices in the natural gas market, I am pleased to see companies taking action quickly to provide immediate relief for consumers,” said Commission Chairman Wendell F. Holland.

The Commission voted unanimously to lower the company’s total gas billing rate from $14.9601 to $11.2223 per MCF a decrease of $3.7378 per MCF or 25 percent. The average customer using about 127 MCF per year will see their bill go from about $1,900 a year to $1,425. The decrease is retroactive to March 1, 2006.

The company serves about 280 residential customers in Clarion, Elk, Forrest and Jefferson counties. In filing for the interim rate, the company said it hoped to provide timely rate relief to its customers while limiting its overcollections for the GCR.

Natural gas utilities file for a gas cost recovery annually, but rates can be adjusted quarterly. By law, the utility cannot make a profit by charging consumers more than what it pays for the natural gas. Companies can apply for interim increases or decreases to reflect significant changes in the wholesale natural gas market.

In doing so, the utility company recalculates its rates to reflect what it paid for the natural gas, and includes a reconciliation of undercollections or overcollections resulting from differences in actual sales and actual gas costs from prior projections.

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 responsible stewards of competition. For recent news releases, or more information about the PUC, visit our Internet homepage www.puc.state.pa.us.

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Docket No:      M-00051915

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