Have you ever wondered what the different charges on your natural gas bill mean? This video will break it all down for you.
GAS RATES
Find information on your Peoples Natural Gas (Pennsylvania) and Delta (Kentucky) Rates below.
Pennsylvania Tariffs & Rates
Proposed PA Tariff and Rates
ANNUAL PURCHASED GAS COST FILING
Peoples submitted its annual purchased gas cost filing with proposed rates to be effective October 1, 2025. The filing is posted below:
Peoples Natural Gas Company 2025 Pre-Filing
About Base Rates and Quarterly Gas Cost Adjustments
On September 27, 2024, Peoples base rates will change by approval of the Pennsylvania Public Utility Commission (PUC). Base rates are charges related to the delivery of your natural gas through our pipeline infrastructure.
In addition to delivery charges, customers pay for the cost of the gas itself. Commodity or gas costs generally represent about half of a customer’s bill and are adjusted quarterly based on market conditions. Peoples does not benefit from commodity or capacity costs of gas; we are required by law to buy the most reliable gas supply at the lowest available cost. The next Quarterly Gas Cost Adjustment occurs on October 1, 2024.
Peoples purchases gas for its customers and passes along the cost, dollar for dollar. Customers are able to choose other suppliers through the Customer Choice Program.
Why does Peoples need to adjust its rates?
As part of Peoples commitment to maintaining the safe, reliable delivery of natural gas through its 15,000 miles of pipeline infrastructure, we are in the midst of investing nearly $2 billion to replace and modernize more than 1,000 miles of aged pipe between 2021 and 2025.
In the past decade, we’ve replaced over a thousand miles of pipeline with state-of-the-art materials, providing a safer, more reliable gas distribution network to our communities.
In 2024 alone, we are investing over $450 million to upgrade and replace 186 miles of pipelines and related facilities.
The PUC approved our rate adjustment to recover and offset the costs associated with modernizing aging infrastructure.
What does “aging infrastructure" mean?
Upgrading and modernizing infrastructure is a significant challenge our entire country faces. It’s easy for us all to see the wear and tear on roads and bridges, but the natural gas pipelines that power and heat your homes and businesses are buried under our feet. As these pipelines age, they face the same challenges as roads and bridges: corrosion, damage from digging impacts, ground shifting, flooding and more. Older pipelines may be made of bare steel or cast iron, which grow more susceptible to leaks as they age.
We prioritize the most at-risk components of our distribution system first, upgrading aging pipes with state-of-the-art materials that limit leaks and corrosion and are flexible to withstand freeze and thaw cycles.
To date, we’ve replaced more than 1,200 miles, as we continue toward our 2034 goal of replacing 3,000 miles of aged pipeline, so you can continue to enjoy the benefits of natural gas for generations to come.
What are the benefits to customers from this rate adjustment?
We’re committed to keeping our communities and our environment safe. When we replace aged infrastructure, this ensures we can safely and reliably provide natural gas for heating, cooking and powering homes and businesses in our region.
Modernizing our infrastructure also makes our distribution system cleaner. As of September 2023, Peoples has reduced its Scope 1 Greenhouse Gas (GHG) emissions 17% from 2019 baseline levels. This reduction is achieved primarily through Peoples replacing old lines with pipes made from state-of-the-art materials, and drives much of the progress of our parent company, Essential Utilities, to its goal of reducing emissions 60% from 2019 levels by 2035.
Finally, being able to properly fund these modernization projects supports hundreds of jobs right here in Southwestern Pennsylvania, many of which are union positions. Peoples is an economic driver, and the natural gas we provide allows businesses to get more cost-effective energy than were it to come from other sources.
How much does modernizing infrastructure cost?
It is a costly process to retire aged pipelines and replace them with new, state-of-the-art materials. In an urban area, our costs to take aging pipeline out of service, install a new line, and restore the street back to an even better condition can cost $2 million per mile.
Weather Normalization Adjustment (WNA)
The PUC approved Peoples’ use of a Weather Normalization Adjustment (WNA) mechanism beginning with bills rendered on October 1, 2024. WNA is a method to adjust a customer’s bill due to variations from expected temperatures, and is used by many gas utilities in Pennsylvania and elsewhere. The WNA will make bills more predictable by making an adjustment for the difference between actual temperatures and normal temperatures if conditions differ from normal by more than three percent (3%). The WNA will only be applied to bills rendered between October 1 and May 31. Learn more about the Weather Normalization Adjustment
How do I know whether I am a customer in the Peoples Natural Gas Division (PNGD) or the Peoples Gas Division (PGD)?
There are two easy ways to determine which division you belong to just by looking at your bill.
Each division has a different phone number to call for General Information, and a different mailing address to send in your monthly payment.
If the number for General Information (listed at the top of your bill on both the front and back sides) is 1-800-764-0111, you are a Peoples Natural Gas Division customer. If the number is 1-800-222-5101, you belong to the Peoples Gas Division.
You can also confirm your division by the address listed on the portion of your bill that is detached and sent in with your payment. PNGD customers mail their payments in to PO Box 644760, while PGD customers mail their payments in to PO Box 747105.
Additionally, you can call our Customer Service Center to confirm which division you belong to.
Peoples received approval to merge PNGD and PGD as part of its base rate adjustment taking effect on September 27, 2024. The company will complete this merger over the coming months, creating a more efficient operation for its customers.
What are the benefits of Natural Gas?
There are many benefits of natural gas. It is an essential energy source that supplies nearly one-third of all the energy in the United States. It is the earth’s cleanest traditional fuel and is safe, reliable and accessible. Natural gas is, on average, 3.3 times more affordable than electricity, according to a 2023 analysis from the U.S. Department of Energy.
Natural Gas is also very reliable, with only 1 in 800 gas utility customers experiencing an unplanned outage in the average year, according to the American Gas Association.
The growing usage of natural gas has also led to a better environment. Pennsylvania’s energy-related carbon dioxide emissions dropped 30% between 1970 and 2021, according to the U.S. Energy Information Administration. Energy-related CO2 emissions also recently hit a 30-year low thanks in large part to the growth of natural gas as an energy source, according to the AGA. Emissions from natural gas distribution systems in the U.S. have also decreased by 69% since 1990, thanks to infrastructure modernization and improved leak detection and repair processes.
If I’m struggling to pay my bill, what help is available?
Kentucky Tariffs & Rates
Peoples has a sister utility in Kentucky, Delta Natural Gas, which serves approximately 40,000 customers in the Bluegrass State. Delta Natural Gas also includes customers of the former Peoples Gas Kentucky. Delta is regulated by the Kentucky Public Service Commission.
Our Kentucky rates can be found on the Delta Natural Gas Company website.
When was the last time Peoples asked to adjust its rates?
Prior to the base rate adjustment taking place on September 27, 2024, the last change for Peoples Natural Gas Division customers took effect in the fall of 2019, while Peoples Gas Division customers last received a base rate adjustment in 2014.