Press Release

PUC Approves New Natural Gas Cost Rates for Valley Energy, Pike County

Published on 8/30/2007

Filed under: Gas

HARRISBURG –The Pennsylvania Public Utility Commission (PUC) today approved gas cost rates (GCR) for Pike County Light & Power and Valley Energy as well as a gas cost adjustment charge for Valley Energy.

The Commission approved the rates by a vote of 5-0. They are to become effective with service rendered on or after Sept. 1, 2007.

The Pike County Light & Power total gas billing rate (GCR plus base gas cost) will decrease $1.10 per thousand cubic feet (Mcf) (9.7 percent) from $11.27 to $10.17 per Mcf. The decrease is attributed to lower prices for natural gas purchases by the company.  Pike County serves 1,160 customers in the county.

The Valley Energy total gas billing rate (GCR plus base gas cost) will increase $.05 per Mcf (.7 percent) from $7.83 to $7.88. The Commission also approved a gas cost adjustment charge credit decrease of $.23 per Mcf, reducing the credit from $1.46 to $1.23 per Mcf.  Valley Energy serves 4,785 residential customers and about 777 commercial, industrial and transportation customers in Bradford County.

Natural gas providers file for an annual revision to the GCR, 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. Companies may apply for interim changes to the GCR if the existing rate is significantly over or under recovering fuel costs.

Local 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 the consumers reflects the actual costs they paid and that every effort was made to purchase the gas for the least possible price. If the utility is found to have acted imprudently, if any costs are deemed not to have been made at least cost, or if the utility has over-collected its costs, the Commission has the authority to make adjustments in the annual GCR proceeding and order refunds to customers.

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 public meetings, or more information about the PUC, visit our Internet homepage www.puc.state.pa.us.

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Docket No. M-00072034

Contact:

• Press Secretary
  717-787-5722