Total bill for residential customers to increase by a modest 1.2 percent

Because of higher prices charged by natural gas producers, PPL Gas Utilities has asked the Pennsylvania Public Utility Commission to approve a small increase in the gas-cost portion of customers’ bills. The increase would become effective Dec. 1.

The preliminary request filed Tuesday (5/1) would increase the charge for natural gas by about 1.2 percent for a typical residential customer, based on current rates. Natural gas bills have two main parts: the cost of the gas itself and the cost of delivering gas to customers through pipelines.

“We are strictly a delivery company. We must purchase the natural gas our customers use, and we are not allowed to make a profit on it,” said Robert M Geneczko, president of PPL Gas Utilities. “The gas-cost portion of customers’ bills reflects the prices natural gas producers charge us.” 

The gas-cost portion, which represents 63 percent of customers’ total gas bill, consists of a charge that is reconciled annually and adjustments that may be made quarterly based on short-term price changes. The request that PPL Gas Utilities filed May 1 is part of the annual reconciliation. The PUC will review this request and issue a ruling before Dec. 1.

“We know that higher gas prices charged by producers increase costs for our customers,” Geneczko said. “We offer programs and services to help customers, especially those with limited incomes.”

PPL Gas Utilities also has a budget billing program that enables customers to spread costs over the entire year.

The total bill of typical commercial and industrial customers would increase by 1.4 percent and 1.5 percent respectively.

PPL Gas Utilities, a subsidiary of PPL Corporation (NYSE: PPL), provides natural gas delivery service to 76,000 homes and businesses in 34 Pennsylvania counties and a small portion of Maryland.