Pa. PUC approves pilot program for Peoples Natural Gas, Equitable Division

The Pennsylvania Public Utility Commission (PUC) has approved a settlement for a new five year pilot program that changes the payment method for customers of Peoples Natural Gas Company LLC and its Equitable Division seeking gas line extension projects.

The Rate MLX program was approved by a 5-0 vote and replaces the companies’ existing service expansion program, called Rider SET. Under the old program, customers would pay a monthly $55 fee to extend gas service. Rate MLX will now provide a higher delivery rate for customers to pay for system expansion costs.

The new delivery rates will be based on a nine-tiered rate structure, set by both companies for each project area based on the minimum delivery rate required to cover project costs.

The settlement includes customer protections to ensure that consumers are not overcharged, including provisions allowing Rate MLX customers to be moved to a lower rate MLX tier if the current tier is deemed too high. Additionally, the change ensures that Rate MLX will be discontinued when project costs have been recouped.

Periodic checks will be conducted to determine if MLX delivery rates should be adjusted.

Under typical natural gas company tariffs, customers who wish to have natural gas service extended to their property must pay up front costs for that extension.

With the new change, the joint petition for settlement was reached among Peoples; Peoples-Equitable Division; the PUC’s independent Bureau of Investigation and Enforcement; the Office of Consumer Advocate; and the Office of Small Business Advocate.