Total Bill for Average Residential Customer Will Increase by 26 Percent Starting Dec. 1; Company Has Plans to Help Customers Cope with Heating Costs
Reflecting significant increases in natural gas prices, which were made worse by hurricanes that affected natural gas production on the Gulf Coast, PPL Gas Utilities customers will see an increase in the gas supply portion of their bills effective
Dec. 1. The monthly gas bill for an average residential customer will increase by
26 percent as a result.
"We work hard to keep the amount we spend on natural gas purchases for our customers as low as possible, but we can't control prices. The whole market has been affected by prices that were at record levels after the hurricanes," said Robert M. Geneczko, president of PPL Gas Utilities.
The gas supply charge will increase to $13.70 per dekatherm. The current charge is $9.75 per dekatherm.
Under the new rates, the total monthly bill for a residential customer who uses 8 dekatherms of gas will be $150.66, up from $119.12. PPL Gas Utilities bills customers based on gas use, measured in dekatherms, a unit of heat energy equal to 1 million British thermal units (BTUs).
A winter bill for a typical residential customer with natural gas home heating will be $347.92, based on gas use of 20 dekatherms. Last winter, a gas heating customer using 20 dekatherms paid $228.50. That increase is consistent with a U.S. Department of Energy projection that people with natural gas home heating would pay, on average, 48 percent more this winter than last winter.
PPL Gas Utilities buys from gas producers, mainly on the Gulf Coast, Geneczko explained, and is not permitted to make a profit on gas purchases.
"The gas supply charge is a pass-through to recover the cost of gas we already have purchased for customers," he said. "We know the increase will have a significant effect on customers – especially those with limited or fixed incomes – and we already have announced several measures intended to help."
Among the initiatives being taken by PPL Gas Utilities:
• A 10 percent increase in the number of customers enrolled in the Customer Assistance Program, which provides more affordable bills to customers who qualify based on their income.
• An extension of shut-off protection to all customers who are not in the Pennsylvania Public Utility Commission's highest income classification.
• A tripling of the contribution to Operation Share, which provides cash grants to help low-income customers pay gas heating bills. The total contribution this winter is $150,000.
PPL Gas Utilities expects to spend more than $1.5 million in 2006 on programs to help its most vulnerable customers, Geneczko said.
Another source of help is the federal government's LIHEAP program, which provided $1.4 million in assistance last winter to PPL Gas Utilities customers. The company encourages low-income customers to apply for LIHEAP funds as early as possible at their county public assistance office.
Another way that customers, regardless of income level, can manage high winter gas bills is by enrolling in Budget Billing, a program that lets customers pay in equal monthly installments over a 12-month period.
"We have many ways to help customers who are struggling to pay their gas bills," Geneczko said. "Any customer who has a concern should call us toll free at 1-800-652-0550 before they fall behind in their payments."
PPL Gas Utilities, a subsidiary of PPL Corporation (NYSE: PPL) provides natural gas delivery service to 75,000 homes and businesses in 34 Pennsylvania counties and a small portion of Maryland.