Pennsylvania PUC Suspends Columbia Gas Rate Increase Proposal

News Summary

The Pennsylvania Public Utility Commission has suspended a proposed rate increase by Columbia Gas of Pennsylvania to allow for an investigation into the company’s request. The proposed increase could affect around 445,000 customers, raising monthly bills significantly. Public hearings will be scheduled for community input.

Pennsylvania – The Pennsylvania Public Utility Commission (PUC) has announced the suspension of a proposed rate increase by Columbia Gas of Pennsylvania Inc., allowing for a formal investigation into the company’s request to raise natural gas rates. This decision affects approximately 445,000 residential, commercial, and industrial customers across 26 counties, including Adams, Franklin, and York counties.

The Commission unanimously voted 5-0 to investigate the proposal, which seeks to increase annual operating revenues for natural gas distribution by approximately $110.5 million, representing a 12.0% increase. If the proposal is approved, the monthly bill for an average residential customer who uses 70 therms of gas per month would rise from $138.52 to $154.29, which is an increase of 11.4%.

Columbia Gas’s filing includes several proposed changes aimed at adjusting how the company stabilizes its revenues and enhances service offerings. Among the proposed changes is the introduction of a Revenue Normalization Adjustment mechanism designed to stabilize revenue despite fluctuations in customer usage. This means that even when consumption varies, the company can maintain a more consistent revenue stream.

Additionally, the company plans to continue and expand its energy efficiency programs for both residential and small commercial customers. Another significant aspect of the proposal is the establishment of an Economic Development Distribution Service tariff intended to support large-volume customers in gaining access to natural gas services, which could potentially foster economic growth in the region.

The present rate increase request is suspended and will proceed to the PUC’s Office of Administrative Law Judge for evidentiary hearings, where testimonies will be collected and a recommended decision will be formulated. A final decision by the PUC regarding the rate hike is expected by December 19.

In light of these developments, the PUC will also schedule public input hearings. These hearings will encourage consumers and stakeholders to share their views regarding the proposed rate adjustments. Details about when and where these public hearings will take place will be released in a future press announcement from the PUC.

Consumers who wish to express their opinions or participate in the public hearings are urged to regularly check the Commission’s announcements for updated information. The PUC is committed to transparency and aims to involve the community in the decision-making process. Additional details regarding the ratemaking process and related resources can be found on the PUC’s official website.

The suspension of Columbia Gas’s rate hike highlights the PUC’s role in regulating public utilities in Pennsylvania and its commitment to ensuring fair practices in the natural gas industry. As investigations proceed and public hearings are conducted, stakeholders will have opportunities to influence the final decision regarding this significant rate adjustment.

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