Peoples Gas customers testify against requested hike in natural gas distribution rates
PITTSBURGH (KDKA) -- Officials from the Public Utility Commission are in Pittsburgh this week to hear from consumers about a big hike in natural gas distribution rates requested by People Gas.
Peoples Gas has asked the state PUC to approve a natural gas rate hike that could average a 21.4% increase for some residential customers from $73.16 to $88.79 a month. Peoples says it hasn't had a distribution increase in five years despite improvements.
"Over the last decade, we have replaced more than a thousand miles of outdated pipelines with state-of-the-art materials, and it is critically important that we have a safe and reliable gas distribution network throughout the region," said Peoples Gas communications manager Nick Paradise.
But that's not all Peoples wants. It has requested something called a weather normalization adjustment, a WNA, or special fee on all customers from October to May whenever the weather is 3% warmer than usual and customers are using less natural gas. That brought strong objections at the first hearing at CCAC Boyce in Monroeville.
"It does not seem moral or reasonable for Peoples to want to collect additional fees when temperatures are warmer and customers, therefore, have less need of natural gas. The weather is a variable that has always been a part of this business," said Peoples customer Nick Hoffman.
KDKA First Alert Meteorologist Ray Petelin says temperatures this winter were seven degrees above normal -- a 22 percent deviation from normal, meaning Peoples customers would have been charged more for less if the PUC approves this request. One of the five PUC commissioners -- Katie Zerfuss -- was in Pittsburgh.
Delano: "Do public hearings like this have an impact?"
Zerfuss: "They absolutely have an impact, and I can't stress that enough."
Delano: "Do you think it is fair to say that the PUC is a rubber stamp to the utilities?"
Zerfuss: "Absolutely not. Every decision is made on a case-by-case basis. There is no predetermined outcome," Zerfuss said.
An administrative law judge is now holding hearings and gathering evidence on both the 21% rate hike and the proposed weather normalization adjustment fee. Already the consumer advocate in the attorney general's office has objected.
"We believe that Peoples' request is simply too high. We will recommend to the administrative law judge and the PUC that the company's rate be set as low as reasonably possible," said Gina Miller with the Office of Consumer Advocate.
A final decision on the proposals is expected before the end of this year.
If you feel strongly about the issue, there are more hearings scheduled on the topic.