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MARCH 1, 2001
Contact: Media Relations (610) 774-5997
Nationwide Higher Gas Prices Felt at PPL


Record-high wholesale natural gas prices over the past few months — and increased gas use because it’s been colder than last winter — have combined to mean higher bills for gas customers nationwide.

Those higher prices also are being felt locally.

"Customers of PPL Utilities will see an increase in the gas supply charge on their March bills," said John Sipics, president of PPL’s gas business. "Unfortunately, wholesale prices have increased significantly for the gas we buy on behalf of our customers.

"Although we adjusted the gas supply charge in December, the price we have paid for gas has been higher than what we have charged customers," he added. PPL resells the gas it buys from the wholesale suppliers to its customers at cost. By state law, natural gas distribution companies like PPL are not allowed to make a profit on the gas they purchase for customers’ use.

The new gas supply charge rate is about $8.28 per dekatherm, an increase of about $2.60 per dekatherm over the previous rate. A dekatherm (DT) is a measure of the heat energy of the gas.

As a result of the gas supply charge increase, which is effective March 1, PPL’s residential customers who use 9 dekatherms of gas a month will see an increase of $23.43 in their total bill.

Commercial customers using 34 DT a month will have an increase of $88.52, and industrial customers using 237 DT will have an increase of $617.03.

"We know that these sharp increases in the price of natural gas — and the increased gas use because of the colder weather — have a significant effect on a family budget," Sipics said. PPL offers several ways for customers to manage the higher bills. These include:

-- Sign up for PPL’s budget billing plan that allows customers to spread gas costs out equally over a 12-month period. To sign up, call 1-800-652-0550.

-- Conserve energy by cleaning heater air filters. Dirty heaters use more energy, so keep the heater’s filter clean. Also, reduce heat in unused rooms, move furniture so it doesn’t block heating outlets and close draperies at night to keep heat in.

-- Apply for LIHEAP. Pennsylvania recently increased the income eligibility limits and extended the application deadline for its Low-Income Heat Energy Assistance Program.

-- If a customer is unable to pay the bill, call PPL at 1-800-652-0550 and a payment arrangement can be worked out.

PPL also has a Customer Assistance Program to provide help to low-income customers whose accounts have past-due balances, and the company recently created a new fund — PPL Operation Share — to provide financial aid to help people in need pay their gas bills. PPL Operation Share will be administered through a network of community social service agencies. The fund is supported by contributions from PPL’s employees and customers that are matched by donations from the company.