In an effort to recover escalating gas costs, PPL Utilities ofAllentown, PA, has asked Pennsylvania regulators to increase thegas supply charge for customers served by its two gas distributors- PFG Gas Inc. and North Penn Gas Co.

PPL Utilities petitioned the Pennsylvania Public UtilityCommission (PUC) to increase its gas supply charge by about$1.28/Dth effective Dec. 1. Through the supply charge, which isfiled with the PUC annually, distribution companies recover thecost of natural gas purchased for customers’ use.

“Sharp increases in the price of natural gas supplies over thepast year are largely responsible for [the need to raise] the gassupply charge,” said John Sipics, president of PPL Utilities gasbusiness. “Unfortunately, gas prices rose more than we hadprojected at the time of our 1999 filing, so the actual cost of gashas exceeded the amount we have been collecting from customers overthe past 12 months.”

He noted the higher costs are the result of greater demand forgas. “As prices for other energy sources have risen dramatically,there has been a shift to lower-cost natural gas. That hasincreased demand, which in turn has pushed up the price we pay forthe gas supplied to customers.”

Sipics estimated residential customers who use 8 Dth a monthwill see an increase of about 15% in their total bill if the PUCapproves PPL’s request. Commercial customers using 33 Dth will seea 17% hike in their monthly bills, while industrial gas customersconsuming 206 Dth likely will have a 20% increase.

Beginning next September, distribution customers will be able toshop for the supply portion of their gas service. “This will givecustomers the opportunity to choose their own supplier, and perhapsrealize a savings,” he said.

PPL Utilities is a subsidiary of PPL Corp., which deliverselectricity and natural gas to more than 1.3 million customers inPennsylvania, markets wholesale or retail energy in the U.S. andCanada, provides energy services for business in the Mid-Atlanticand Northeast regions, and owns several generation facilities.

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