Press Release

PUC Approves Settlement Substantially Reducing Rate Changes for Peoples Natural Gas Company

Published on 9/12/2024

Filed under: Gas

Settlement Includes Improvements to Programs for Income-Qualified Residents; Merging Rate Districts Will Reduce Some Average Bills

HARRISBURG – The Pennsylvania Public Utility Commission (PUC) today approved a settlement that substantially reduced rate changes sought by Peoples Natural Gas Company LLC (Peoples Gas) – cutting Peoples Gas’ initial rate request by more than 40% and enhancing services to income-eligible consumers.

Peoples Gas provides natural gas distribution services to approximately 700,000 residents and businesses in Pittsburgh and surrounding counties in southwestern Pennsylvania within its Peoples Natural Gas Division (PNGD) and Peoples Gas Division (PGD).

The Commission today voted 5-0 to adopt the recommended decision of PUC Administrative Law Judge Mary D. Long and approve a non-unanimous settlement, along with a low-income stipulation.

The revised rate changes provide for a $93 million increase in annual revenues, compared to the initial Peoples Gas request for a $156 million increase – which is a change of approximately 11%, rather than the nearly 19% increase that the utility had sought. 

As part of this settlement, the merger of the company’s two rate districts will result in a reduction in the monthly residential bill for a customer in the PGD rate district using 80 MCF per month of 1.2% per month, while a residential customer in the PNGD rate district using 80 MCF per month will see a monthly increase of 11.9%.

This settlement also includes steps to enhance service to low-income customers, including initiatives like automatic enrollment and recertification for the utility’s Customer Assistance Programs (CAPs) for customers who receive federal LIHEAP heating assistance; a clear prohibition on collecting security deposits from customers who are confirmed to be income eligible for CAP; additional funding for the utility’s low-income usage reduction program; better tracking and reporting on low-income customers; steps to address declining enrollment in CAP; and an additional $150,000 per year in contributions by company shareholders into the utility’s hardship fund, which assists at-risk customers who might not qualify for other programs.

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.

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Docket No.: R-2023-3044549

Contact:

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