PPL Utilities has made a preliminary filing with the Pennsylvania Public Utility Commission for an increase in the gas supply charge for its PFG Gas, Inc. and North Penn Gas Co. customers.

Through the gas supply charge, which is filed with the PUC annually, natural gas distribution companies recover the cost of natural gas purchased for customers' use.

PPL Utilities has requested an increase of about $1.28 per dekatherm. A dekatherm is a measure of the heat energy in the gas consumed. If the PUC approves the change, it will become effective Dec. 1.

"Sharp increases in the price of natural gas supplies over the past year are largely responsible for this rise in the gas supply charge," said John Sipics, president of PPL Utilities' gas business.

"Unfortunately, gas prices rose more than we had projected at the time of our 1999 filing, so the actual cost of gas has exceeded the amount we have been collecting from customers over the past 12 months," he added.

Sipics pointed out that rising natural gas prices are a national issue, caused in part by increased demand for gas. "As prices for other energy sources have risen dramatically, there has been a shift to lower-cost natural gas. That has increased demand, which in turn has pushed up the price we pay for the gas supplied to customers."

Natural gas distribution companies in Pennsylvania by regulation are not permitted to earn a profit on the natural gas supply, Sipics added.

Residential customers who use 8 DT a month will see an increase of about 15 percent in the total bill if the PUC approves PPL's request. Commercial customers using 33 DT a month would have an increase of about 17 percent, and industrial customers using 206 DT would have about a 20 percent increase.

Beginning in September 2000, customers will be able to shop for the supply portion of their natural gas service, Sipics said. Under the Natural Gas Choice and Competition Act, passed in June 1999 by the Pennsylvania legislature, natural gas supply for residential and small commercial and industrial customers is being opened to competition. Gas distribution will continue to be regulated.

"This will give customers the opportunity to choose their own supplier, and perhaps realize a savings," Sipics said. PFG and North Penn, operating as PPL Utilities, will continue to distribute the gas regardless which supplier a customer chooses.