Press Release

PUC OKs Steam Heat Co. Proposal for Debt Repayments to Bank, PG Energy

Published on 4/6/2006

Filed under: Gas

HARRISBURG – The Pennsylvania Public Utility Commission today approved petition by Community Central Energy Corp. (CCEC) to use customer payments to pay back both its natural gas supplier and a local bank while continuing to meet critical operating expenses. The company also committed to filing a plan for abandonment of service.

“CCEC is in the process of responsibly winding up its affairs and ensuring an orderly transition of its customers to alternative heat providers,” said Commission Vice Chairman in a statement. “It is my hope that, with the same dedication and faithfulness, the remaining customers will honor their financial obligation and earnestly make provisions for the future.”

The Commission voted unanimously to ratify its Second Implementation Order, modifying it to reflect the petition’s request for the distribution of funds while the company begins its abandonment process. The Commission’s Second Emergency Order issued March 28, 2005, directed the company to use customer payments to pay down natural gas bills from PG Energy instead of using customer payments to pay off loans from the bank

The Commission accepted the company’s proposal to file a plan for abandoning service within 30 days. The company is required to notify all of its customers about the intention to discontinue service. Consumers should begin to make alternative arrangements for the 2006-2007 heating season.

Community Central Energy provides heat for about 30 customer that include industrial, commercial, institutional and residential entities. The company uses natural gas to generate steam for its heating customers. By law, Community Central Energy is permitted to pass on to customers natural gas costs related to powering the steam generation plant. It is a dollar-for-dollar pass through of costs.

Because maintaining steam heat to the customers in the winter is a priority, the Commission issued an Emergency Order on Feb. 6, 2006, directing PG Energy to provide continuous natural gas service to Community Central Energy so customers would continue to have heat during the winter months.

Generally, steam heat is produced in centralized generation plants by heating water to its boiling point, and then distributing the steam heat to users through a series of underground pipes.

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-00061936

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