Peoples Natural Gas Seeks To Implement Uniform Price to Compare, Transportation Rules Across Three Pa. Service Areas

Peoples Natural Gas Company LLC and Peoples TWP LLC have filed at the Pennsylvania PUC to merge their companies for the purposes of supply pricing and transportation rules.

Peoples Natural Gas Company and Peoples Natural Gas-Equitable Division have already implemented common supply pricing, and the new merger would create a single supply price for all three Peoples service areas.

Specifically, Peoples and Peoples TWP would merge the Purchased Gas Cost ("PGC") rates, Merchant Function Charge ("MFC") and Gas Procurement Charge ("GPC") of Peoples TWP with the now combined PGC, MFC and GPC rates of the Peoples and Equitable Divisions.

"This will allow all three Divisions to have a single price-to-compare ('PTC') which will facilitate shopping across all three Divisions by allowing natural gas suppliers ('NGSs') to offer competitive pricing terms that will apply to all Divisions," the utilities said

The utilities are also proposing to make Peoples TWP's transportation rules consistent with the transportation rules that have been approved by the PUC for both the Peoples and Equitable Divisions. "This will also facilitate ease of operation for NGSs across all three Divisions," the companies said

Peoples TWP's sales customers would receive a small increase in rates as a result of the proposed merger of PGC, MFC and GPC rates