PPL Newsroom
Print this article
AUGUST 31, 2005
Contact: George Lewis, 610-774-5997
gclewis@pplweb.com
Rising Natural Gas Prices Force Increase in PPL Gas Utilities Pass-Through Charge

The continuing steep rise in U.S. natural gas prices has forced PPL Gas Utilities to increase the pass-through charge its customers pay for gas supply.

Effective Sept. 1, the gas supply charge portion of customers' bills will increase to $9.75 per dekatherm from $8.06 per dekatherm.

This will result in a 12.8 percent increase on the total monthly gas bill for a typical residential customer. The monthly bill for residential customers using 8 dekatherms will increase from $105.60 to $119.12. A dekatherm is a unit of heat energy equal to 1 million British thermal units (BTUs). The energy in one dekatherm can run a furnace for 10 hours, dry 72 loads of laundry or cook 23 12-pound turkeys.

"We pledge to do all we can to help our customers cope with rising natural gas prices, which continue to be a national concern," said Robert M. Geneczko, president of PPL Gas Utilities.

The company offers a budget billing program that lets customers average their bills over a 12-month period, and has programs to assist customers who have financial hardships.

Natural gas prices continue to rise because supply has not kept pace with demand on a national level. Through mid-August, the price of natural gas on the spot market had increased by about 30 percent since the beginning of the year. Disruptions in gas supply caused by Hurricane Katrina have increased spot gas prices by about 30 percent this week.

Prices of other fuel sources for home heating are increasing at comparable rates, Geneczko noted.

Commercial and industrial customers will see increases in their total gas bills as well. The monthly bill for a commercial customer using 31 dekatherms will increase from $348 to $400, or 15 percent. The monthly bill for an industrial customer using 201 dekatherms will increase from $2,092 to $2,431, or 16 percent.

Customers who would like information about budget billing or assistance programs should call PPL Gas Utilities at 1-800-652-0550.

PPL Gas Utilities is the local natural gas delivery company for 77,000 customers in parts of 34 Pennsylvania counties.