Updated: PUC Accepts As Final Utilities' Merger Settlement's Retail Choice Provisions, Requires Utility To Propose Expansion Of Purchase Of Receivables (POR) Program

The Pennsylvania PUC adopted as final a settlement which approves the merger of the three individual UGI natural gas utilities into a single utility

As previously reported, the PUC last week conditionally accepted the settlement, subject to the receipt of any adverse comments. The PUC's condition did not relate to the retail choice issues contained in the settlement. The PUC's condition relates to the continued filing of earnings reports by the LDCs on a non-consolidated basis. Parties were given five days to comment on the PUC's order. No adverse comments were filed, and the PUC adopted the settlement as final

Under the final order, UGI's three Pennsylvania natural gas utilities will be merged into a single utility but with distinct rate zones and tariffs

As previously reported, UGI will merge UGI Utilities - Gas Division, UGI Central Penn Gas, and UGI Penn Natural Gas into a single utility. Initially, such utility would have three distinct rate zones as follows:

• Penn Natural Gas Would become UGI North

• Central Penn Gas Would become UGI Central

• UGI Utilities - Gas Division would become UGI South

However, as further discussed in our prior story on the settlement, the settlement provides for a process to consider rate consolidation in the future.

Currently, only UGI Utilities - Gas Division (UGI South) has a purchase of receivables program.

Under the settlement, by no later than October 30, 2018, UGI shall propose, as part of one or more limited purpose tariff filing(s), to expand the pre-merger UGI Gas Purchase of Receivable program to the UGI Central and UGI North rate districts.

See our prior story here for discussion of other retail choice issues addressed by the settlement, which would be adopted without modification under the PUC's order as described in such story