Peoples Seeks Base Rate Change to Improve Pipeline Infrastructure
Funds will support environmental efforts through strategic pipeline modernization
News Release: For Immediate Release
PITTSBURGH, PA, January 28, 2019 – Peoples Natural Gas, LLC (Peoples) has filed a request with the Pennsylvania Public Utility Commission (PUC) for a base rate increase of $94.9 million to support its Long Term Infrastructure Improvement Plan (LTIIP). This plan continues the removal and replacement of aging pipelines to improve infrastructure, while substantially decreasing greenhouse gas emissions. This is the largest single infrastructure initiative in the company’s history.
The base rate increase request also provides for the recovery of Peoples’ ongoing business costs, such as labor and benefit expenses, taxes, debt costs and a reasonable return on investment. The request requires investigation and approval by the PUC. The earliest date for the rate change would be March 29, 2019. But the process for a general rate proceeding before the PUC can take up nine months after the initial filing and it is therefore expected that new rates would be effective sometime in autumn 2019.
“Traditionally, utilities have always sought to upgrade their pipelines to make them safer,” Peoples President & CEO Morgan O’Brien said. “What we’ve learned over the last decade is that we have to focus even more on the safety aspect, but also on making our environment safe from greenhouse gases. It is now incumbent on our industry to accomplish both.”
“This request will help Peoples invest in modernizing our pipeline infrastructure and continuing our greenhouse gas reduction,” said O’Brien. “In 2018 alone, through our LTIIP plan, Peoples replaced 146 miles of pipe.”
If the PUC approves the entire request, a typical Peoples division residential customer would see a bill increase of approximately $10 per month, while a typical Equitable division residential customer would see a bill increase of approximately $14 per month.
“While every utility needs to have rates that truly reflect the costs of providing services,” O’Brien said, “we are really proud of the fact that this is Peoples’ first request for an increase in more than six years. We have avoided increases up to now by focusing on achieving efficiencies in the multiple systems that we operate.”
“Customers with fixed or limited incomes may have concerns about how the proposed increase will affect their bill,” said Director of Customer Relations for Peoples, Rita Black, “We can help our customers in many ways with energy assistance and monthly payment plans.” Eligible customers can be connected to Peoples’ Customer Support Programs by calling 1-800-400-WARM or visiting peoples-gas.com/help.
Customers can also contact Peoples with questions regarding the base rate filing at 1-800-764-0111. Additional details on the rate request are available at peoples-gas.com/rates.
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About Peoples:
Peoples is an energy provider serving approximately 740,000 homes and businesses in Western Pennsylvania, West Virginia and Kentucky. The company’s mission is to improve the lives of its customers and to help build long-term economic growth for the regions it serves. For more information about Peoples, visit www.peoples-gas.com and follow Peoples on social media @peoplesnatgas.