Press Release

PUC Approves Settlement for Significantly Smaller Rate Changes for Columbia Gas Customers

Published on 11/21/2024

Filed under: Gas

Settlement Includes Enhanced Assistance Programs and Expanded Outreach for At-Risk Customers

HARRISBURG – The Pennsylvania Public Utility Commission (PUC) has approved a partial joint settlement that limits the rate changes for Columbia Gas of Pennsylvania Inc. (Columbia) to a significantly smaller amount than originally requested. Columbia serves approximately 445,000 residential, commercial, and industrial customers across 26 counties in western and south-central Pennsylvania.

The Commission voted 5-0 to approve the partial settlement along with the Recommended Decision of PUC Administrative Law Judge Jeffrey A. Watson, addressing the issues raised in this case and capping the overall change at $74 million annually—a 40% reduction from Columbia’s original request for $124.1 million in additional revenue. The Commission also rejected a proposed municipal levelization charge, which would place a charge or credit on a customer’s bill based on the permitting and restoration fees charged by the customer’s municipality.   

The settlement was supported by the Pennsylvania Office of Consumer Advocate (OCA), the Office of Small Business Advocate (OSBA), the PUC’s Bureau of Investigation & Enforcement (I&E), The Pennsylvania State University, and Columbia. Other parties, including the Coalition for Affordable Utility Services and Energy Efficiency in Pennsylvania (CAUSE-PA) and the Pennsylvania Weatherization Providers Task Force, did not oppose the settlement.

Under the settlement, a typical residential customer using 70 therms of natural gas per month will see their monthly bill change from $118.16 to $128.06 (9.06%), instead of the initially proposed $136.92 (15.88%).

Enhanced Customer Assistance and Outreach

The settlement includes measures to enhance affordability programs and expand outreach efforts:

• Increased Funding for Usage Reduction: Beginning in 2026, Columbia will increase its annual budget for the Low Income Usage Reduction Program (LIURP) by $800,000.
  
  
• Improved Customer Assistance Program (CAP) Notices: Columbia will collaborate to create plain-language notifications about CAP and related affordability programs, focusing on outreach to:
  
  
  • Low-income customers with arrearages eligible for CAP’s arrearage forgiveness benefits.
    
    
  • Customers eligible for waived or refunded security deposits when enrolling in CAP.
    
    
  • Customers at or below 150% of the federal poverty level negotiating payment arrangements.
    
    
  • Customers disconnected for non-payment who remain disconnected during the annual Cold Weather Survey required by the PUC.
    
    

Other Settlement Provisions

The agreement also extends Columbia’s pilot Weather Normalization Adjustment (WNA) program until its next base rate case, with annual reporting to OCA, OSBA, and I&E. Parties retain the right to propose changes to the WNA in future rate proceedings.

New distribution rates will take effect on December 14, 2024.

About the PUC

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.

Visit the PUC’s website at www.puc.pa.gov for recent news releases and video of select proceedings. You can also follow us on X (formerly Twitter), Facebook, LinkedIn, Instagram and YouTube. Search for the “Pennsylvania Public Utility Commission” or “PA PUC” on your favorite social media channel for updates on utility issues and other helpful consumer information.

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Docket No.: R-2024-3046519

Contact:

• Nils Hagen-Frederiksen
  Press Secretary
  717-418-2701
  nhagen-fre@pa.gov