Equitable Gas Co. filed a gas cost adjustment with thePennsylvania Public Utility Commission (PUC) Thursday which, ifapproved, will result in a 9% reduction in customers’ monthlybills. The rate cuts would be effective Oct. 1. The PUC did notdisclose when it would review the filing.

For an average residential heating customer who uses 116Mcf/year, the LDC said bills would decrease from $97.95 to$88.89/month. Gas costs are included in customers’ bills with noprofit from utilities. Changes are passed on to the customer on adollar-to-dollar basis.

“We were able to increase our storage over the winter,” said BobButter, an Equitable Spokesman. “With that storage, we were able tobuy cheaper gas, store it, and pull it out at opportune times. Thisresulted directly in the bill reduction.”

Equitable said customers stand to gain additional savings, ifGov. Tom Ridge’s proposal to cut the gross receipt tax (GRT) leviedon residential gas users is enacted. It estimates an additional 5%cut if the proposal is put into action on Jan. 1, 2000.

The GRT cut proposal is also a key issue in the state’s attemptto deregulate gas service to small commercial and residentialcustomers (see Daily GPI, Feb. 1).

“The tax cut proposal and the Pennsylvania deregulation bill areobliquely connected, but the bottom line is we support both piecesof legislation. Competition is good on our side because we becomemore cost competitive and the customers like it because they savemoney.”

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