The Pennsylvania Public Utility Commission (PUC) recently approved a Peoples Natural Gas Co. (Peoples Gas) rate increase request.
PUC Administrative Law Judge Mary D. Long recommended the decision, and the commission approved a settlement that is lower than the company’s request to increase rates by more than 40 percent.
Under the settlement, the company will receive a $93 million increase in annual revenues, an approximately 11 percent change. The company had requested $156 million annually, a nearly 19 percent increase.
The merger of Peoples Gas’ two rate districts will result in a reduction of 1.2 percent per month for a customer in the Peoples Gas Division rate district using 80,000 cubic feet of gas per month. A residential customer in the Peoples Natural Gas Division rate district will see a 11.9 percent monthly increase.
Also included in the settlement are initiatives to enhance service to low-income customers. These include automatic enrollment and recertification for the utility’s Customer Assistance Programs (CAPs) for customers who receive federal LIHEAP heating assistance, and a prohibition on collecting security deposits from customers who are eligible for CAP.
Peoples Gas provides natural gas distribution services to approximately 700,000 residents and businesses in southwestern Pennsylvania in Pittsburgh and surrounding counties.