Officials plan to oppose request to raise gas rates

The OCA has filed a formal complaint on the request.
MERCER, Pa. -- Mercer County commissioners indicated they will oppose a 6.9-percent overall rate increase being requested by National Fuel Gas Distribution Corp.
The company provides natural gas to 214,000 residential and other customers in 14 counties in northwestern Pennsylvania, including Mercer.
At a commissioners' agenda review meeting Wednesday, Commissioner Olivia Lazor read a letter from the Office of Consumer Advocate, an arm of the Pennsylvania attorney general's office, which is investigating the request.
Atty. Erin Gannon of the OCA said the 6.9-percent increase includes a "drastic" 72 percent increase in "customer charges," which are $12 per month and will rise to $20.64 monthly if the request is approved.
She said customer charges pay for items other than gas itself, such as employee salaries, operations and maintenance and costs for installing meters.
Seeking hearings
The OCA has filed a formal complaint on the request and is asking the Pennsylvania Public Utility Commission to hold evidentiary hearings to determine whether the request is reasonable.
Also included in the request, Gannon said, is an unusual variety of surcharges. She said her office is opposing the surcharges because they reduce the gas company's incentive to be efficient as well as reducing its risk. She said her office also is trying to prevent the shifting of costs to lower-usage customers.
Gannon said OCA is retaining expert witnesses to review the increase request and will thoroughly review the surcharge proposals as well as a request to impose seasonal rates.
If there is substantial public interest, she said the PUC will have public input hearings around the state.
For more information, customers can contact OCA at (800) 684-6560.