RATES AND RATE ADJUSTMENTS

In Pennsylvania, Peoples operates two separate divisions that have different rates and tariffs. One is called the Peoples Natural Gas Division (PNGD), and the other is the Peoples Gas Division (PGD). These divisions exist because of the gradual consolidation of multiple Western Pennsylvania gas utilities by Peoples over the past ~15 years. If you’re not sure which division your home or business is part of, contact Peoples at 1-800-764-0111. Both PNGD and PGD are regulated by the Pennsylvania Public Utility Commission.

Current Tariffs

PNG Retail Tariff – Supplement No. 37

PG Retail Tariff – Supplement No. 102

Peoples has certified to the Pennsylvania Public Utility Commission that this is an accurate electronic representation of the tariffs which are officially filed at the Commission. Users of electronic tariffs should note, however, that such tariffs are not the official documents, and users assume responsibility for reliance upon tariffs in electronic format.

Current Rates

PNG

PG

Notice of Proposed Rate Changes

Proposed Tariffs

Proposed Combined Tariff

Proposed Combined Supplier Tariff

On December 29, 2023, Peoples filed for a base rate adjustment request with the Pennsylvania Public Utility Commission (PUC) to help support Peoples’ efforts to modernize our infrastructure, for continued safe and reliable delivery of natural gas. All rate requests must be approved by the PUC through an extensive review process. The earliest that we expect customers would see the effect of a rate adjustment is September 2024.

Notice of Proposed Rate Changes

Statement of Reasons

Proposed Tariffs

Proposed Combined Tariff

Proposed Combined Supplier Tariff

The Public Utility Commission (PUC) will conduct public input hearings concerning Peoples’ request for an increase in rates. In-Person and Telephonic hearings will be held as follows: 

Tuesday, March 5, 2024; 1:00 p.m. & 6:00 p.m. 

Community College of Allegheny County

Boyce Campus – Auditorium

595 Beatty Road

Monroeville, PA 15146

Wednesday, March 6, 2024; 1:00 p.m. & 6:00 p.m.

Butler County Community College

Main Campus – Founders Hall

107 College Drive

Butler, PA 16002

Thursday, March 7, 2024; 1:00 p.m. & 6:00 p.m.

Telephonic Hearings

Toll-Free Conference Number: 866.566.0649

Passcode: 83345259

Visit the Public Input Hearings page to learn more about how to pre-register and/or participate in a hearing, including requesting an interpreter, submitting exhibits for a hearing, and more.

As part of Peoples commitment to maintaining the safe, reliable delivery of natural gas through its 15,000 miles of pipeline infrastructure, we are in the midst of investing nearly $2 billion to replace and modernize more than 1,000 miles of aged pipe between 2021 and 2025.

In the past decade, we’ve replaced over a thousand miles of pipeline with state-of-the-art materials, providing a safer, more reliable gas distribution network to our communities. 

In 2024 alone, we plan to invest over $450 million to upgrade and replace 186 miles of pipelines and related facilities.   

We are requesting a rate adjustment with the PUC to recover and offset some of the costs associated with modernizing aging infrastructure.  

Upgrading and modernizing infrastructure is a significant challenge our entire country faces. It’s easy for us all to see the wear and tear on roads and bridges, but the natural gas pipelines that power and heat your homes and businesses are buried under our feet. As these pipelines age, they face the same challenges as roads and bridges: corrosion, damage from digging impacts, ground shifting, flooding and more. Older pipelines may be made of bare steel or cast iron, which grow more susceptible to leaks as they age.  

We will prioritize the most at-risk components of our distribution system first, upgrading aging pipes with state-of-the-art materials that limit leaks and corrosion and are flexible to withstand freeze and thaw cycles. 

To date, we’ve replaced over a thousand miles, as we continue toward our 2034 goal of replacing 3,000 miles of aged pipeline, so you can continue to enjoy the benefits of natural gas for generations to come. 

The last base rate change for Peoples Natural Gas Division customers took effect in the fall of 2019, while base rates for Peoples Gas Division customers last changed in 2014.

This request is to adjust our ‘base rate’ costs. It is separate and unrelated to the ‘Quarterly Gas Cost Adjustment’ that occurred on October 1, 2023 and will continue to fluctuate quarterly, with the next adjustment taking effect on January 1, 2024. The quarterly gas cost adjustment rate is for the commodity and capacity costs of gas and is a pass-through cost to the customer. Peoples does not benefit from commodity or capacity costs at all; we are required by law to buy the most reliable gas supply at the lowest available cost.   

Commodity/capacity or gas costs generally represent about half of a customer’s bill. We purchase gas for customers who have not signed up for the Customer Choice Program. We then pass that cost along to the customer with no mark-up or profit, meaning the gas cost portion of a residential customer’s monthly bill is based entirely on their monthly gas consumption and the delivery of the gas they use.

It is a costly process to retire aged pipelines and replace them with new, state-of-the-art materials. In an urban area, our costs to take aging pipeline out of service, install a new line, and restore the street back to an even better condition can cost $2 million per mile.  

The PUC will review the base rate adjustment request and grant all, some or none of the request. We expect customers will see the base rate adjustment reflected on their bills at the end of September 2024.

There are two easy ways to determine which division you belong to just by looking at your bill.

Each division has a different phone number to call for General Information, as well as a different mailing address to send in your monthly payment.

If the number for General Information (listed at the top of your bill on both the front and back sides) is 1-800-764-0111, you are a Peoples Natural Gas Division customer. If the number is 1-800-222-5101, you belong to the Peoples Gas Division.

You can also confirm your division by the address listed on the portion of your bill that is detached and sent in with your payment. PNGD customers mail their payments in to PO Box 644760, while PGD customers mail their payments in to PO Box 747105.

Additionally, you can call our Customer Service Center to confirm which division you belong to.

Many Peoples customers are currently paying a Distribution System Improvement Charge (DSIC). This charge allows us to replace aging infrastructure without increasing base rates. The amount of the DSIC is capped at 5.0% of the amount billed to customers for distribution services and thus only allows the Company to recover a small portion of the modernization investments made. While the DSIC enables us to make enhancements without changing base rates, it is not sufficient to account for the entire amount of the significant investments Peoples is making to modernize its infrastructure for continued safe, reliable delivery of natural gas to customers.    

If the PUC approves our request to increase base rates, the DSIC charge will be reset to zero once the new rates go into effect. 

Riders are supplemental charges or credits applied to utility bills for a variety of reasons. Our December 29, 2023 filing asks for revisions to three existing riders:

• TRS: This approved rider will refund to customers the tax benefit of a catch-up deduction related to the repair of the Company’s natural gas delivery system.
• TCJA: This approved rider will refund to customers the tax savings associated with the 2018 Tax Cuts and Jobs Act.
• AVC: This approved rider will charge to customers the capacity costs associated with the Allegheny Valley Connector Interstate Pipeline System.  This system is made up of transmission and storage assets used by the Company to provide service to customers.  

No two customers’ bills are the same. Bills will fluctuate based on seasonal changes and customer usage. The PUC will review the base rate adjustment request and grant all, some or none of the request. We expect customers will see the base rate adjustment reflected on their bills beginning in September 2024. 

If the full base rate adjustment request is approved, the total bill for a Peoples Natural Gas Division residential customer who uses 80 Mcf of gas per year will increase by $15.63 per month, while a Peoples Gas Division residential customer using 80 Mcf per year would see a rate adjustment of $6.35 per month.

We’re committed to keeping our communities and our environment safe. When we replace aged infrastructure, this ensures we can safely and reliably provide natural gas for heating, cooking and powering homes and businesses in our region.  

Modernizing our infrastructure also makes our distribution system cleaner. As of September 2023, Peoples has reduced its Scope 1 Greenhouse Gas (GHG) emissions 17% from 2019 baseline levels. This reduction is achieved primarily through Peoples replacing old lines with pipes made from state-of-the-art materials, and drives much of the progress of our parent company, Essential Utilities, to its goal of reducing emissions 60% from 2019 levels by 2035. 

Finally, being able to properly fund these modernization projects supports hundreds of jobs right here in Southwestern Pennsylvania, many of which are well-paying union positions. Peoples is an economic driver, and the natural gas we provide allows businesses to get more cost-effective energy than were it to come from other sources. 

There are many benefits of natural gas. It is an essential energy source that supplies nearly one-third of all the energy in the United States. It is the earth’s cleanest traditional fuel and is safe, reliable and accessible. Natural gas is, on average, 3.3 times more affordable than electricity, according to a 2023 analysis from the U.S. Department of Energy.

Natural Gas is also very reliable, with only 1 in 800 gas utility customers experiencing an unplanned outage in the average year, according to the American Gas Association.

The growing usage of natural gas has also led to a better environment. Pennsylvania’s energy-related carbon dioxide emissions dropped 30% between 1970 and 2021, according to the U.S. Energy Information Administration. Energy-related CO2 emissions also recently hit a 30-year low thanks in large part to the growth of natural gas as an energy source, according to the AGA. Emissions from natural gas distribution systems in the U.S. have also decreased by 69% since 1990, thanks to infrastructure modernization and improved leak detection and repair processes.

Peoples has a sister utility in Kentucky, Delta Natural Gas, which serves approximately 40,000 customers in the Bluegrass State. Delta Natural Gas also includes customers of the former Peoples Gas Kentucky. Delta is regulated by the Kentucky Public Service Commission.   

Our Kentucky rates can be found on the Delta Natural Gas Company website.