MILFORD - The need to modernize and replace gas equipment for enhanced reliability and safety has led Pike County Light & Power Company (PCL&P) to file a natural gas base rate case with the Pennsylvania Public Utilities Commission (PAPUC) for an increase in natural gas delivery rates.

If approved by the PAPUC pursuant to its normal review schedule, this increase would not go into effect until April 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 Township and the Borough of Matamoras.

If this proposed filing is approved by the PAPUC, 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.

In addition, PCL&P is proposing an alternative three-year rate plan for its gas operations, which, if adopted, would establish rates for the three-year period ending March 31, 2012. While the percentage and dollar impacts for the Company’s three-year proposal currently are not available, the monthly bill impacts for customers would be lower under a three-year plan than a one-year plan. The Company expects that the percentage and dollar impacts associated with the Company’s three-year proposal will be fully developed through the Commission’s rate case process.

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.