GAS RATES

Current Tariff

PNG Retail Tariff No. 48 – “Retail Tariff No. 48-Supplement No. 20”

PNG Supplier Tariff - "Supplier Tariff S-4 - Supplement No. 3”

Current Rates

PNG - “Net Billing Schedule-Supplement No. 20”

Proposed Supplemental PA Tariff and Rates

Proposed Tariffs: PNG Retail Tariff – “Retail Tariff No. 48 – Supplement No. 22”

Proposed Rates: PNG – “Net Billing Schedule – Supplement No. 22”

Proposed Tariffs

• PNG Retail Tariff No. 49 – “Retail Tariff No. 49”
• PNG Supplier Tariff – “Supplier Tariff S-5”

Proposed Rates

• PNG – Net Billing Schedule - Tariff No. 49

Notice of Proposed Rate Adjustment 

• Legal Notice of 3.27.26 Base Rate Adjustment Request 

Statement of Reasons

• Statement of Reasons document
• Statement of Reasons plain language document 

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. 

Your gas bill is made up of two separate components: base rates and commodity costs. Watch the video at the top of this page for a breakdown of what your natural gas bill pays for each month. 

Base rates are charges related to the delivery of your natural gas through our pipeline infrastructure. They also cover the costs to operate and maintain our pipeline distribution system, which entails more than 15,000 miles of pipeline throughout our 18-county service territory. Each year, Peoples replaces approximately 200 miles of aging infrastructure with new pipelines in order to continue providing safe and reliable service, while also reducing greenhouse gas emissions. 

Commodity (or gas) costs generally represent about half of a customer's bill and are adjusted quarterly based on market conditions. Peoples does not profit from commodity or capacity costs of gas; we are required by law to buy the most reliable gas supply at the lowest available cost.  

Peoples purchases gas for its customers and passes along the cost without benefit to the company. Customers are able to choose other suppliers through the Customer Choice Program. Be sure to check the supplier rates against Peoples’ Price to Compare, listed on our website and every bill we issue, to ensure you are receiving the most competitive rate. 

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 more than $600 million per year to replace and modernize close to 900 miles of aged pipe between 2026 and 2030. 

Since 2013, we’ve replaced more than 1700 miles of pipeline with state-of-the-art materials, providing a safer, more reliable gas distribution network to our communities.  In 2026 and 2027 alone, we plan to invest over $1.1 billion to upgrade and replace 372 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, cast iron and other materials, 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.  

Since beginning our Long Term Infrastructure Improvement Plan in 2013, we’ve replaced close to 2,000 miles of aged pipelines on our way toward a goal of replacing 4,070 miles of aged pipelines by 2038. These enhancements allow you and your family to continue to enjoy the benefits of natural gas safely, reliably and efficiently, for generations to come. 

The last base rate change for Peoples Natural Gas customers took effect in the fall of 2024.  

The request filed on March 27, 2026 is to adjust our ‘base rate’ costs. It is separate and unrelated to the natural gas cost rate adjustments filed in February and March. Please see the above section About Base Rates and Gas Cost Adjustments for an explanation of the difference between base rates and gas cost rates.  

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. The gas cost rate is adjusted on a quarterly basis, with the next adjustment occurring on April 1, 2026. 

Peoples does not benefit from commodity or capacity costs of gas; we are required by law to buy the most reliable gas supply at the lowest available cost.

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 $2.5 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 December 2026. 

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 cover all 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.

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 December 2026. 

If the full base rate adjustment request is approved, the total bill for a residential customer who uses 86 Mcf of gas per year will increase by $16.03 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. We have reported that as of December 31, 2024, Peoples has reduced its Scope 1 Greenhouse Gas (GHG) emissions approximately 20% 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% emissions reduction 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-quarter 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, 3.5 times more affordable than electricity, according to a 2024 analysis from the U.S. Department of Energy.  

Natural Gas is also very reliable, with only 1 in 628 gas utility customers experiencing a planned or unplanned outage in the average year, according to the American Gas Association. Comparatively, electric distribution systems have an average of one outage per customer per year. 

The growing usage of natural gas has also led to a better environment. The natural gas delivery system is 92% efficient from production to customer. 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 40-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 70% 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.  

Rates for Delta customers can be found on the Delta Natural Gas Company website.