The Pennsylvania Public Utility Commission has reached an agreement with Peoples gas that is expected to substantially reduce rate changes sought by the company.
According to the settlement, the initial rate increase from Peoples was cut by over 40%. The new rate changes provide for a $93 million increase in annual revenues compared to the $156 million increase the company originally requested. As part of the settlement, the company will merge two of its rate districts.
The settlement will also require the company to enhance service to low-income customers, including initiatives like automatic enrollment and recertification to the Customer Assistance Program or CAP for customers who receive federal LIHEAP heating assistance; a prohibition on collecting security deposits from customers confirmed to be income-eligible for CAP; additional funding for low-income usage reduction program and a $150,000 additional annual contribution by company shareholders into the utility’s hardship fund.
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