Pennsylvania PUC Grants Gas Rate Increase

Equitable Gas Delivery Adjustment First in Nearly 12 Years

PITTSBURGH, Feb. 26 /PRNewswire/ — Equitable Gas Company today announced that the Pennsylvania Public Utility Commission has approved its request for a delivery rate increase – the amount the company is permitted to charge for delivery of natural gas to homes and businesses.

The decision will result in an average increase in residential bills of $10.25 per month, or about 7-1/2 percent. The increase is the first Equitable Gas Company has received in nearly 12 years.

“We are mindful of the impact of this rate increase on our customers, particularly given the pressures of the current economy,” said Elise Hyland, president of Equitable Gas Company. “The good news is that customer bills will soon reflect the recent decline in natural gas prices, which will more than offset the delivery rate increase approved by the Commission today.” As a result, the typical monthly customer bill will be reduced, overall.

Natural gas prices, or commodity rates, are the rates utilities charge for the gas itself. This charge is established to comply with the state’s mandate that gas companies neither make a profit nor take a loss on the commodity. These costs are reviewed quarterly by the PUC, and Equitable Gas Company’s next scheduled adjustment will become effective April 1.

The delivery rate increase, which will generate an additional $38.3 million in annual revenue, was necessary to offset significant investments in pipeline infrastructure, and to recover increasing operating costs – both aimed at ensuring the safe and reliable supply of natural gas to Equitable Gas Company customers.

“We are particularly proud that our employees have been able to continually upgrade our pipeline system and improve customer service performance, while holding the line on delivery charges for more than a decade,” Hyland added.

As part of the rate case increase, Equitable Gas Company also plans to expand its weatherization and customer assistance programs to help customers who are struggling to pay their gas bills. For families who need assistance, the company recommends contacting Equitable Gas at 412-395-3050.

SOURCE Equitable Gas Company