Press Release

PUC: Scranton Steam Heat Customers Should Send All Payments to New Address

Published on 3/29/2006

Filed under: Gas

HARRISBURG – Customers of Community Central Energy in Scranton should send all future payments to a new address, according to an Order by the Pennsylvania Public Utility Commission (PUC).

       The Commission’s goal is to ensure that customer collections are used to maintain an uninterrupted supply of natural gas to Community Central Energy Corp. and heat to the customers. The Commission issued a Second Emergency Order Tuesday, requiring all future customer payments for Community Central be sent to a post office box administered by PG Energy.

       Even if a customer receives a bill in the next several days with an alternate billing address, customers are asked to send all payments to:

       Community Central Energy Corp.

       c/o PG Energy

       P.O. Box598

       Wilkes-Barre, PA  18702

       Because maintaining steam heat to the customers is a priority and in the public’s best interest, 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.

       PG Energy stepped in as a natural gas supplier for Community Central Energy on Feb. 1, 2006, after Amerada Hess discontinued service for alleged lack of payment. The company’s back-up oil facility is not operable. Through its Emergency Order, the Commission provided important assurances to PG Energy that if Community Central revenues will not cover the costs for the natural gas, the company will be allowed to file for cost recovery for the natural gas supplied to Community Central Energy.

       The Commission’s Second Emergency Order issued Tuesday directs the company to use customer payments to pay down natural gas bills from PG Energy. Community Central owes PG Energy $242,767 for natural gas supplies used in February. The company was using customer payments to pay off loans from the First National Community Bank of Dunmore instead of paying its natural gas bills.

        Community Central Energy provides heat for about 30 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.

         The Commission is continuing with its investigation into the viability of Community Central Energy after the loss of contracted natural gas service in February affected the company’s ability to ensure affordable, reliable service. In examining the operations of the company, as well as options for consumers, the Commission is working to determine how best to provide reliable heating service to the affected consumers. A staff report on the investigation is expected to be issued to the Commission by the end of April.

        The PUC regulates four steam heat companies in the state. 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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