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Press Release

PUC Suspends Proposed Modification of Weather Normalization Adjustment used by Philadelphia Gas Works

Published on 9/15/2022

Filed under: Gas

PUC Proceedings Will Investigate and Analyze PGW’s Request to Modify WNA and Consider Reasonableness of PGW’s Existing Rates

HARRISBURG – The Pennsylvania Public Utility Commission (PUC) today moved to suspend a proposed modification to the Weather Normalization Adjustment (WNA) used by Philadelphia Gas Works (PGW) – allowing for a full investigation and analysis of the changes requested by PGW.  The WNA is an automatic adjustment clause that adjusts customer bills when the actual weather varies from “normal” weather levels.

Today’s 3-0 vote by the Commission comes in response to a petition filed by PGW which would modify the utility’s current WNA, establishing a control cap to limit the WNA charge or credit to no greater than 25% of total delivery charge (excluding the WNA).

Earlier this year the PUC took emergency action to eliminate PGW’s WNA for the month of May 2022 following “unusually large and unanticipated charges to customers.”  That emergency action reversed the related WNA charges on consumer bills for May 2022 usage – returning approximately $12.4 million to PGW customers.  After the PUC took that emergency action, PGW filed a petition to revise the WNA, moving forward.

Per today’s PUC order, the Commission will investigate PGW’s proposed changes to the WNA. While today’s action leaves PGW’s original WNA in place, the PUC order also calls for broader consideration of the reasonableness of PGW’s existing rates, rules, and regulations as part of this investigation. 

Today’s Commission order directs this case to be assigned to the PUC’s Office of Administrative Law Judge for investigation and such hearings as may be necessary to develop a recommended decision for future consideration.  Per the PUC order, the PGW proposal will remain suspended until April 1, 2023, unless the Commission acts at an earlier date.

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The Pennsylvania Public Utility Commission balances the needs of consumers and utilities; ensures safe and reliable utility service at reasonable rates; protects the public interest; educates consumers to make independent and informed utility choices; furthers economic development; and fosters new technologies and competitive markets in an environmentally sound manner.

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