PUC approves PECO proposals for expanded natural gas service

Proposals include program to allow fixed monthly surcharge instead of large up-front installation fee.


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The Pennsylvania Public Utility Commission (PUC) recently approved a three-year, $10 million pilot program proposed by PECO Energy Co. to increase consumer access to service and lower costs for homes and businesses.

The Neighborhood Gas Pilot Program, one of two proposals accepted by the PUC last week, would allow new gas customers to pay a fixed, monthly surcharge rather than a large up-front payment for the cost of installation.

The commission also approved changes in PECO’s calculation process for any required customer contribution. The PUC noted that calculating the financial return for a gas main extension over a 40-year period, rather than PECO’s previously used 15-year period, will more accurately represent natural gas service economics and reduce the amount consumers will have to pay for connections to gas mains.

PECO is the fourth utility business to win commission approval for natural gas service expansion initiatives, following the earlier examples of UGI, Columbia Gas of Pennsylvania and Peoples Natural Gas Company.

Commissioner Pamela A. Witmer said PECO’s efforts are “another in a series of positive steps designed to afford Pennsylvania citizens every reasonable opportunity to avail themselves of the numerous benefits of natural gas.”

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