News

May 2, 2008

PPL seeks 30.4% gas bill hike

Firm cites increased costs for natural gas in request it will file with the state PUC.

PPL Gas Utilities announced Thursday it is seeking approval for a more than 30 percent price increase for natural gas, effective Dec. 1.

Citing increased costs for natural gas, Allentown-based PPL said it will ask the state Public Utility Commission to approve an increase that the utility estimated would raise the average residential customer’s monthly bill by 30.4 percent and commercial and industrial customers by 37.5 percent and 40.2 percent, respectively.

Nearly 6,000 customers in Northeastern Pennsylvania would be affected.

The monthly bill for a typical residential customer using seven units (called dekatherms) of natural gas would increase from $115.78 to $150.96.

Gas utilities on certain schedules are required to file documents for rate increases by June 1 each year. The PUC usually votes on them in the fall.

UGI Penn Natural Gas is on the same filing schedule, and plans to file any increase it might seek by mid-May, said Joseph Swope, a spokesman for Reading-based UGI Utilities. UGI bought PPL Gas Utilities in March, but won’t close on the deal until Sept. 30.

Because they purchase in the same market, PPL’s filing could foretell increases expected for the rest of UGI’s 158,000 customers in northcentral and Northeastern Pennsylvania.

The filing is “essentially your best estimate looking forward of what your gas prices are going to be at that point,” Swope explained.

PPL plans to buy natural gas soon and store it for winter use because it predicts summer prices will be lower, company spokeswoman Lissette Santana said. The 30-percent increase could be reduced, depending on how much PPL actually pays, she said.

Given daily news of rising prices for products and other energy sources, the company said it’s aware of the effect Thursday’s announcement will have on customers.

“We understand that high energy prices place a heavy burden on our customers and on the communities we serve,” said Bob Geneczko, president of PPL Gas Utilities, in a statement. “Although we try to shield our customers as much as possible from rising costs, we are faced with significant increases in costs to buy natural gas from our suppliers.”

Santana noted the company sponsors several programs, including low-income assistance and billing that spreads out annual costs over the course of the year, to help customers.

The monthly bill for a typical residential customer using seven units of natural gas would increase from $115.78 to $150.96.

Rory Sweeney, a Times Leader staff writer, may be reached at 970-7418.

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