Utilities Propose To Merge Service Areas Under Single Default Service Price

Peoples Natural Gas Company LLC and Peoples Natural Gas Company LLC - Equitable Division have filed at the Pennsylvania PUC to merge the Merchant Function Charges ("MFC") and Gas Procurement Charges ("GPC") for both its Peoples Division and Peoples-Equitable Division.

The filing is part of the companies proposal to combine the gas costs of both divisions. A universal Price to Compare ("PTC") for the Peoples Division and Peoples-Equitable Division would be implemented on October 1, 2015.

"The Company expects that a uniform PTC will reduce customer confusion and promote retail supply competition by allowing NGSs to compete against a single PTC for both Divisions. This is also a critical step facilitating the reduction of supply pools into a single pool for both Divisions," Peoples said

At Peoples, only sales and Priority I transportation customers will be affected by the change. At Peoples-Equitable, only sales and firm transportation customers will be affected by this change. No customer class is expected to experience a rate change greater than $0.03/mcf, Peoples-Equitable said

As part of the change, Peoples-Equitable is proposing to apply the MFC to the Capacity Charge of Rate FDS (choice) customers. "This is consistent with the method used by the Peoples Division, and is necessary to create a single PTC for both Divisions. In addition, it is also appropriate to apply this surcharge to the Capacity Charge consistently across Rate RS and FDS customers because Peoples Division pays for capacity for Priority 1 customers and assigns this capacity to suppliers at no cost. Therefore, the Company incurs uncollectible costs for these capacity costs, and it is appropriate to apply the MFC to the capacity charge for Rate RS and FDS customers," Peoples-Equitable said