Settlement Would Pave Way For Affiliated Utilities To Offer Single Price To Compare -- EnergyChoiceMatters.com

Settlement Would Pave Way For Affiliated Utilities To Offer Single Price To Compare

June 8, 2022

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Copyright 2010-21 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com

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A settlement concerning the merger of affiliated Pennsylvania LDCs Peoples Natural Gas Company LLC (Peoples Natural Gas) and Peoples Gas Company LLC (Peoples Gas) would facilitate approval of a single price to compare (PTC) for the combined utility, which is the subject of a separate proceeding

The settlement itself would not adopt such a single PTC, but signatories to the merger settlement -- including the Office of Consumer Advocate and Office of Small Business Advocate -- agree that they will not oppose the Peoples Companies’ proposal to establish a single PTC for the two companies in the pending 1307(f) proceedings at Docket Nos. R-2022-3030661 and R-2022-3030664, respectively, to be effective October 1, 2022, exclusive of Allegheny Valley Connector (AVC) charges, which will continue to be recovered via a separate surcharge applicable to all Peoples Natural Gas customers, unless and until changed in a future base rate proceeding

A single PTC would be accomplished by consolidating the purchased gas costs (PGC), merchant function charges (MFC) and gas procurement charges (GPC) of the two utilities

For legal and operational reasons, approval of the proposed merger of the Peoples Companies is required in order to merge their respective PGC rates

A single PTC, "would facilitate customer shopping across both operating divisions by allowing Natural Gas Suppliers ('NGSs') to offer competitive pricing terms applicable to both divisions," the Peoples LDCs said

Docket A-2021-3029831 et al.

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