HARRISBURG — The Pennsylvania Public Utility Commission on Thursday approved a joint settlement that reduces a base rate increase request filed by Columbia Gas of Pennsylvania Inc. on March 16.
The Commission voted 5-0 to approve a Joint Petition for Partial Settlement, which reduces Columbia Gas’ requested rate increase by approximately 45 percent. Columbia Gas’ initial request called for a $46.9 million (8.16 percent) increase in annual distribution operating revenues. Thursday’s action by the Commission approved a revenue increase of $26 million (4.52 percent), which becomes effective Dec. 16.
Under the settlement, the typical monthly bill for a residential customer using 70 therms of gas per month will increase by $4.11, from $91.63 to $95.74 (4.49 percent). Under Columbia Gas’ original proposal, the average total monthly bill for the same residential customer would have increased by $8.25 from $91.63 to $99.88 (9 percent).
Additionally, the settlement provides that approximately $23.8 million associated with the Tax Cuts and Jobs Act of 2017 will be refunded to customers in full over an eighteen-month period upon the new rates taking effect, to be calculated based on the liability booked by the Company in revenues for service rendered from Jan. 1 through Dec. 15.
Customers will be refunded the approximately $23.8 million via a negative surcharge applied to customers’ bills on a percentage basis with interest, beginning no later than Dec. 16.
