Press Release

PUC Approves Using Nearly $15 Million in Unspent Electric and Natural Gas Consumer-Education Funds for Helping Low-Income Families with Universal Service Programs

Published on 12/1/2005

Filed under: Electric Gas

HARRISBURG -- The Pennsylvania Public Utility Commission (PUC) today approved proposals submitted by seven electric and natural gas companies to transfer nearly $15 million in unspent utility consumer-education funds to help low-income families in their service territories this winter using Universal Service Programs.  The Commissioners cited energy costs that are as much as 40 percent higher as the reason why these funds need to be moved to low-income programs for the upcoming 2005-06 winter heating season.

“The unprecedented increases in energy costs facing consumers in this Commonwealth warrant Commission action to do everything in our power to provide truly needy residential consumers with assistance in paying their heating bills this winter,” said Commissioner Bill Shane, prime mover of this initiative.

Chairman Wendell F. Holland said, “We are presently facing a unique set of circumstances that makes meeting the energy needs of all Pennsylvanians more difficult.  This winter will not be business as usual.  Our action today is another affirmative, compassionate step by this Commission to protect Pennsylvania consumers.” (Chairman Holland’s Statement)

The Commission today approved proposals submitted by Allegheny Power, Metropolitan Edison Company, Pennsylvania Electric Company, PG Energy, PPL Electric Utilities Corp., PPL Gas Utilities Corp., and T.W. Phillips Gas and Oil Company to transfer most of the funding to their Universal Service Programs such as Customer Assistance Programs (CAPs) or Low-Income Usage Reduction Programs (LIURPs).  However, $100,000 will be provided in the form of a grant to a community-based organization, $1 Energy Fund, per the proposal provided by Allegheny Power.

On Nov. 10, the Commission solicited comments about amending prior orders so that all or a portion of a utility’s existing consumer-education fund can be transferred to the electric distribution companies’ and the natural gas distribution companies’ Universal Service Programs, which include CAP and LIURP.  The Commission directed affected jurisdictional electric distribution companies and natural gas distribution companies in the Commonwealth to file comments on this directive, describing the source or sources of these funds (i.e., whether the funding was subject to approval in a settlement), including how and if these funds continue to be collected; the current balance of these funds; and their recommendation on the transfer of some or all of these funds; and any other unspent funds (e.g., abandoned refunds/credits), to their universal service programs.

On Feb. 27, 1998, and on Feb. 10, 2000, the PUC entered orders that directed certain electric distribution companies (EDCs) and natural gas distribution companies (NGDCs) to establish consumer-education programs for electric competition and natural gas competition.  In compliance with the aforementioned orders, these EDCs and NGDCs established utility-specific consumer-education programs for their customers. 

As part of its “Prepare Now” outreach campaign, the PUC has urged consumers on limited or fixed incomes to call their utility about special programs and funds to help heat their homes and pay their energy bills.  Low-income households also may be eligible for grants under the federal Low Income Home Energy Assistance Program (LIHEAP).  Every natural gas and electric company in Pennsylvania operates a CAP and a LIURP.  CAP provides customers with low incomes with lower rates.  LIURP provides energy efficient equipment and insulation. 

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 at www.puc.state.pa.us.

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Docket Nos. M-00981036, M-00001326, et al.

Contact:

• Tom Charles
  Director of Communications
  717-787-9504
  thcharles@pa.gov