Press Release

PUC Asks for Public Comment on Using Unspent Electric and Natural Gas Consumer-Education Funds for Helping Low-Income Families with Universal Service Programs

Published on 11/10/2005

Filed under: Electric Gas

    HARRISBURG -- The Pennsylvania Public Utility Commission (PUC) today asked for public comment on using unspent electric and natural gas utility consumer-education funds to help low-income families this winter using universal service programs.  The unspent education funds addressed today are those monies collected from ratepayers, but to this point unspent on informing people about electric and natural gas competition.

    “While we continue to believe that consumer education is important, we believe that, with the unprecedented increases in energy costs that we are already facing, this Commission should do everything within its power to provide truly needy customers with assistance in paying their heating bills,” wrote Commissioner Bill Shane and Chairman Wendell F. Holland in their motion.  “And we commend Gov. Rendell for his ‘Stay Warm’ meeting with utility CEOs where many valuable ideas like this one were discussed.”

    Commissioner Pizzingrilli said in a statement that she supports the solicitation of comments on this issue and that “if, based on the comments, the Commission opts to enable utilities to transfer funds from consumer-education programs to universal service programs, it is also important to determine if a portion of those funds should remain for education purposes.”

    The Commission will solicit 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 Customer Assistance Programs (CAP) or Low-Income Usage Reduction Programs (LIURP).  The Commission directs 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. 26, 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.  According to information that is now available to the Commission, as of Dec. 31, 2004, several of the EDCs and NGDCs have substantial amounts of money in these accounts that are unspent.

    “As we are well aware, the projected increases in energy costs for the upcoming heating season are unprecedented,” said Commissioner Shane.  “These projected increases will undoubtedly have a significant effect on household budgets.  Moreover, this Commission will be implementing the changes and challenges associated with Chapter 14 as it relates to residential ratepayers.  These changes and challenges include, but are not limited to:  cash deposits, reconnection of service, termination of service and payment arrangements.  Needless to say, a large segment of each company’s customer base will have a difficult time paying their energy bills.  The projected sharp increases in energy costs create the potential of a significant increase in the proportion of customers unable to pay their bill.”

    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 and M-00001326

Contact:

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