The Pennsylvania Public Utility Commission on Thursday (2/8) approved an estimated $8.1 million increase in PPL Gas Utilities’ natural gas delivery rates. The change, the company’s first since Jan. 1, 2001, will take effect Friday (2/9).
The precise effect on customers’ bills cannot be determined until a final order, which is expected in a few days, is issued by the PUC. However, the company estimates that the typical residential customer with an average monthly use of 8 dekatherms will pay about $7.75 more per month.
“Increasing rates is not a matter we take lightly, but this increase is necessary to give us the resources we need to continue providing safe, reliable service to our customers,” said Robert M. Geneczko, president of PPL Gas Utilities.
He said PPL Gas Utilities has invested more than $60 million to maintain and improve its delivery system since the last rate increase in 2001. The company plans to invest an additional $52 million in improvements over the next five years.
The increase does not affect gas supply charges, which cover PPL Gas Utilities’ costs to purchase gas for customers. Gas supply charges, which PPL Gas Utilities does not profit from, make up more than two-thirds of the average residential customer’s bill.
The increase in delivery rates also will provide additional funding to expand enrollment in the company’s Customer Assistance Program by more than 10 percent. This program offers help to customers who are having trouble paying their bills because of financial hardships.
The PUC also voted to direct PPL Gas Utilities to develop a home weatherization program for low-income customers. The program could include energy conservation education and measures such as the installation of insulation and caulking. The company will be required to submit a proposal to the PUC for consideration.
PPL Gas Utilities is a subsidiary of PPL Corporation (NYSE: PPL) and provides natural gas delivery service to 76,000 homes and businesses in 34 Pennsylvania counties and a small portion of Maryland.