Press Release

PUC Approves Agreement for UGI to Purchase PPL Gas

Published on 8/21/2008

Filed under: Electric Gas Water and Wastewater Telecommunications Transportation and Safety

HARRISBURG – The Pennsylvania Public Utility Commission (PUC) today approved the settlement agreement for UGI Utilities Inc. to purchase PPL Gas Utilities Corp.

The Commission voted 5-0 to approve the acquisition, finding that the partial settlement reached in the case was in the public interest by affirmatively promoting the service, accommodation, convenience or safety of the public in some substantial way. 

Under the settlement agreement, the company will:

• Not request a base rate increase for PPL Gas for one year while maintaining the current PPL Gas purchased gas cost rates;
• Include a $2.5 million credit in its next base rate proceeding;
• Maintain employment levels and honor existing collective bargaining agreements;
• Provide annual reports for five years regarding the quality of customer service;
• Expand PPL Gas funding for the Low Income Usage Reduction Program from $378,000 to $500,000;
• Meet with community organizations before making any changes to Customer Assistance Programs;

The partial settlement was filed by the companies and several parties in the case including: the state’s Office of Consumer Advocate; the PUC’s Office of Trial Staff, the state’s Office of Small Business Advocate; the Commission on Economic Opportunity; and labor intervenors. One party, Hess Corp., opposed the settlement.

On April 2, 2008, UGI and PPL Gas filed a joint application with the PUC for the sale of PPL Gas to UGI, which serves 307,000 natural gas customers in 14 Pennsylvania counties including Harrisburg, Lancaster, Reading, the Lehigh Valley and their surrounding suburbs. PPL Gas serves about 75,000 customers in 27 counties in Pennsylvania.

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 select Commission proceedings or more information about the PUC, visit our Web site at www.puc.state.pa.us.

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Docket No.    A-2008-2034045; A-2008-2034047; G-208-2034115; G-2008-2034132

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• Press Secretary
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