Press Release

PUC Finalizes $175,000 Settlement with Allegheny Power over State College Terminations

Published on 10/19/2006

Filed under: Electric

HARRISBURG – The Public Utility Commission (PUC) today finalized a settlement with Allegheny Power that includes a $175,000 contribution to a low-income program and ends an informal investigation into a utility termination that preceded a fatality in State College.

“In approving this settlement, we are providing funds for low-income consumers while at the same time sending a clear message to the utilities that we are carefully monitoring their practices when it comes to terminating service,” said PUC Chairman Wendell F. Holland. “We remain hopeful that the message this settlement sends will help avoid the future occurrence of any unfortunate events.”

The Commission voted 4-0 to approve the settlement, which includes the $175,000 contribution to the Dollar Energy Fund, a non-profit organization that provides financial assistance to customers with low or fixed incomes. At its Sept. 15, 2006, meeting, the Commission had asked for comments on the settlement. No comments were filed.

Under the settlement, the company also agreed to make changes to its business practices, particularly those related to service terminations. The company may not recover the $175,000 from ratepayers.

The settlement agreement, reached between the PUC’s independent prosecutory staff and Allegheny Power, followed an informal investigation into a May 17, 2005, termination at 2131 N. Oak Lane, State College. According to the media reports, a resident of the home was found dead on July 4, 2005. The cause of death was accidental carbon monoxide poisoning from a gasoline powered generator that the household was using to generate electricity.

The prosecutory staff’s position is that Allegheny Power violated provisions of the Public Utility Code and Commission regulations in terminating electric service. Specifically, the prosecutory staff said that the termination was improper and in violation of Chapter 14, which governs how utilities terminate service. Allegheny Power denies those assertions.

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 new releases, audio of select Commission proceedings or more information about the PUC, visit our website at www.puc.state.pa.us.

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Docket No. M-00061952

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