Utility also seeks natural gas rate hike

MILFORD — The need to modernize and replace gas equipment has led Pike County Light & Power Company (PCL&P) to file a natural gas base rate case with the state Public Utilities Commission (PUC) for an increase in delivery rates last Friday. If approved, this increase would not go into effect until Apr. 2009 and would be only the second PCL&P natural gas base rate increase in 15 years. PCL&P serves approximately 1,200 natural gas customers in Westfall and Matamoras. If this proposed filing is approved by the commission, the total natural gas bill for a typical residential natural gas customer using a monthly average of 100 ccf would increase overall on average $33.08 per month, from $143.23 to $176.31, or a 23.1 percent increase from today’s bills. PCL&P is also proposing an alternative three-year rate plan for its gas operations, which, if adopted, would end in March 2012 and are expected to provide lower monthly bill impacts for customers than those under a one-year plan. Specific rates have not yet been developed. PCL&P is proposing a long-term gas main replacement program aimed at converting the present cast-iron and steel low pressure system into a modern high pressure system, featuring corrosion-resistant plastic mains. “One of the primary reasons for this increase is that we have been doing extensive gas main replacement as part of our regular maintenance work, and where appropriate, Pike has taken advantage of coordinating the main replacements with the local municipality” PCL&P Vice President - Customer Service James O’Brien said.