Peoples Seeks Base Rate Changes to Support Its Pipeline Modernization Program
Funds will help continue upgrades that have improved safety, reliability while reducing greenhouse gas emissions
PITTSBURGH [December 29, 2023] – Peoples Natural Gas (“Peoples” or “the Company”) filed a request today with the Pennsylvania Public Utility Commission (“PUC”) for a base rate increase to support its Long-Term Infrastructure Improvement Plan (“LTIIP”), among other operations and sustainability initiatives. The Company’s LTIIP involves the retirement and replacement of aging pipelines while decreasing greenhouse gas emissions. Peoples’ ongoing LTIIP is the largest single infrastructure initiative in the company’s history, investing more than $900 million. Since 2021, the Company has installed nearly 500 miles of new, more reliable pipelines.
The Company’s base rate request, Peoples’ first increase since 2019, also provides for the recovery of Peoples’ ongoing business costs. The request requires investigation and approval by the PUC. The rate review process can take up to nine months, which means customers can expect any approved increases to take effect at the end of September, 2024.
“Over the last decade, we have replaced more than 1,000 miles of pipelines with state-of-the-art infrastructure, creating a safer, more reliable gas delivery system for our customers,” said Peoples President Michael Huwar. “Modernizing our system also cuts down on greenhouse gas emissions, and the work we’ve done over just the last few years has reduced Peoples’ emissions by 17 percent from 2019 levels. In 2023 alone, we replaced 181 miles of pipe, with plans to replace roughly 2,000 more miles by 2034.”
In addition to funding Peoples’ infrastructure modernization efforts, the filing seeks to consolidate the two divisions of Peoples’ Pennsylvania operations. Currently, customers receive service from either the Peoples Natural Gas Division (PNGD) or Peoples Gas Division (PGCD).
If the PUC approves the Company’s entire request, a PNGD residential customer who uses 80 Mcf annually would see a rate adjustment of $15.63 per month, while a PGD residential customer using 80 Mcf annually would see a rate adjustment of $6.35 per month. With the potential merger of these two divisions, all residential customers would pay the same base rates for gas delivery service, under one common tariff. The total requested rate increase is $156.0 million. Base rates for PGD customers have not increased since 2014, and last increased for PNGD customers in 2019.
“Our ability to provide safe, reliable energy to more than 700,000 customers depends on maintaining and upgrading the more than 15,000 miles of pipeline Peoples operates,” said Huwar. “Seeking efficiencies that keep costs as low as possible for customers is a core part of our mission, as is helping those struggling to make ends meet.”
“We want to help our customers with fixed or limited incomes connect with programs and resources that make utility bills more affordable,” said Director of Community Assistance Programs Rita Black. “Anyone who is concerned about being unable to pay their bill is encouraged to use our online ProgramFinder or call 1-800-400-WARM.”
The process to modify base rates is transparent and involves multiple opportunities for public participation. Customers with questions about the proposed rates can visit Peoples-Gas.com/rates or call 1-800-764-0111 for more information.
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About Peoples Natural Gas
Peoples provides safe, reliable natural gas service to approximately 700,000 homes and businesses in Western Pennsylvania. By providing essential, cost-effective energy while reducing emissions and investing in the communities it serves, Peoples shows its commitment to customers, employees, and the environment. Peoples is an Essential Utilities (NYSE: WTRG) company.