Peoples customers testify about rate increase at public hearing
BUTLER TWP — Joseph Byrnes, a retiree from Wexford, said the usual annual increase to the Social Security payments he and his wife receive is about 3% per year, which pales in comparison to the 18% distribution rate increase Peoples Natural Gas Company is requesting.
Byrnes was one of a handful of people who attended a public hearing Wednesday afternoon to voice his opinions on a rate increase requested by Peoples. According to the Pennsylvania Public Utility Commission, the rate increase of up to 21.4% for customers would increase Peoples’ revenue by $156 million per year.
“I think a 3% increase is more reasonable to accept,” Byrnes said. “I worked 41 years — I never got an 18% raise in a year.
“It’s a lot of extra money; I don’t feel that they need $156 million extra a year,” he said.
Administrative Law Judge Mary Long is presiding over the case regarding the rate increase request. Also in attendance were representatives of Peoples, the Bureau of Investigation and Enforcement, the Office of Small Business Advocate and the Office of Consumer Advocate.
Under the request, an average residential customer in Peoples Natural Gas Division using 80 thousand cubic feet (Mcf) per year would see their monthly bill increase from $73.16 to $88.79. An average customer, which includes commercial customers, in the Peoples Gas Division using 80 Mcf per year would see a monthly increase from $84 to $90.35.
At the hearing, Long explained to the attendees that their testimony could be referenced by the legal representatives of each organization at PUC hearings about the increase. The final decision by the PUC on the increase is due Sept. 27.
Meagan Moore, senior attorney for Peoples, said the company hasn’t requested an increase in gas distribution rate in nearly five years. She said the company is undergoing modernization projects to improve the distribution system for about 700,000 customers in 18 counties.
“Any increase granted to us by the commission will allow us to recover the infrastructure investments we have made to our system and recover the expenses required to operate our system in Western Pennsylvania,” Moore said.
Moore also said the move to increase the distribution rate is for continued safety and reliability of Peoples’ systems.
“We understand that any increase in a bill is never an easy thing,” Moore said. “We are working very hard to make sure we keep costs reasonable while assuring that infrastructure is safe and reliable.”
Jacob Guthrie, assistant consumer advocate for the Office of Consumer Advocate, said his office believes an increase of up to 21% for residential customers is too big of a jump. Guthrie said his office has already filed against the increase.
“The OCA filed a formal complaint against Peoples’ rate increase,” Guthrie said. “We will recommend to the Administrative Law Judge and to the PUC that the company’s rates be set as low as reasonably possible.”
James Iman Sr., a part-time worker at a retail store and Butler Township resident, pointed out that demographics in the area have “changed dramatically in the last three years,” leaving many residents to struggle to pay bills at the current utility rates.
“Everybody is struggling in today’s climate, and for the life of me, I can’t understand why Peoples — which is a great organization, a great gas company — is requesting this increase at such a time as this,” Iman said. “We’re going to have to make a choice, ‘Do I want to get my medicine, do I want to get food, or do I need to pay my gas bill?’”
Jack Cohen, president of the Butler County Tourism & Convention Bureau, also spoke at the hearing, and said the gas company provides reliable service to many members of the bureau.
Joe Saeler, executive director of the Butler County Community Development Corporation, spoke as well, and echoed Cohen’s sentiment that Peoples provides service to many area companies and has sponsored community events. He also pointed out that Peoples’ officials are or have been on the CDC board.
