PPL Gas Utilities has filed a request with the Pennsylvania Public Utility Commission to reduce the gas-cost portion of customer bills effective Dec. 1.

"This is a preliminary filing that could change depending on natural gas prices over the next six months," said Robert M. Geneczko, president of PPL Gas Utilities. "But the fact that we are able to request a reduction at a time of generally higher gas prices is a strong indication that our approach is helping to insulate our customers from price volatility."

The proposed reduction is 63 cents per dekatherm, from the current rate of $7.47 to $6.84. A dekatherm is a measure of the heat energy in natural gas.

A residential customer using 9 dekatherms a month would see their total gas bill reduced from $111.12 to $105.44, or 5.1 percent. The effect on individual customers will vary by rate class and gas use.

A typical commercial customer would see a reduction of 6 percent on the total gas bill. For the typical industrial customer, the reduction would be 6.4 percent.

PPL Gas Utilities does not have its own sources of natural gas production. It must purchase gas from producers at unregulated, market prices. Prices have increased steadily in recent years, Geneczko noted, because production has not kept up with the increases in natural gas use.

Natural gas delivery companies pass through to customers the prices they pay for gas supply. They may not make a profit on the gas they buy for customer use.

The part of the bill that reflects the purchased cost of gas is adjusted annually after PUC review — on Dec. 1 for PPL Gas Utilities — and may then be revised quarterly to reflect short-term price changes.

The PUC is expected to rule on the company's request in November. Before then, PPL Gas Utilities may request quarterly rate adjustments twice: in June and September.

PPL Gas Utilities provides natural gas delivery service to about 75,000 customers in 34 Pennsylvania counties through its North Penn Gas and PFG Gas, Inc., subsidiaries.

PPL Gas Utilities is a subsidiary of PPL Corporation. Headquartered in Allentown, Pa., PPL Corporation (NYSE: PPL) controls about 11,500 megawatts of generating capacity in the United States, sells energy in key U.S. markets and delivers electricity to nearly 5 million customers in Pennsylvania, the United Kingdom and Latin America. More information is available at www.pplweb.com .