To: Susan D. Colwell, PUC Administrative Law Judge
NO RATE HIKE FOR UGI CUSTOMERS
We strongly believe that UGI has had decades to take action to make our neighborhoods safer by removing obsolete pipelines through routine and scheduled maintenance.
We strongly believe that if UGI has financial resources to expand its customer base for profit, it should have the financial resources to replace and maintain current infrastructure lines and ensure current consumers' safety.
We demand the PUC deny its approval of the 19.7% rate increase and for UGI to shoulder the cost burden for any replacement infrastructure in compliance with the PUC order.
Furthermore, we urge the PUC to remove roadblocks and support renewable energy production to provide choices to consumers so that, as a Commonwealth, Pennsylvania can look forward to the day that we are not dependent upon fossil fuels that are not only destructive to our environment but pose catastrophic risks to human health, safety and property.
We strongly believe that if UGI has financial resources to expand its customer base for profit, it should have the financial resources to replace and maintain current infrastructure lines and ensure current consumers' safety.
We demand the PUC deny its approval of the 19.7% rate increase and for UGI to shoulder the cost burden for any replacement infrastructure in compliance with the PUC order.
Furthermore, we urge the PUC to remove roadblocks and support renewable energy production to provide choices to consumers so that, as a Commonwealth, Pennsylvania can look forward to the day that we are not dependent upon fossil fuels that are not only destructive to our environment but pose catastrophic risks to human health, safety and property.
Why is this important?
BACKGROUND: UGI Utilities has asked the Public Utilities Commission (PUC) for approval of a 19.7% rate increase for all UGI natural gas customers. The proposed rate increase will produce approximately $58.6 million to cover costs associated with the distribution of gas to residential and commercial customers. According to UGI, the requested rate hike is being driven, in part, by the cost of replacing outdated bare steel and cast iron distribution lines. This work was required by a PUC order following a deadly 2011 Allentown gas explosion that resulted in the deaths of five people, including one infant.
While gas companies have been pocketing profits for years, they now want to reach into the pockets of consumers to cover the costs of what should have been routine and ongoing maintenance. Pipeline replacement should have been covered within the cost of safely operating a gas utility, but as we know, companies are often willing to forego routine maintenance in exchange for profit and at the expense of the consumers. These costs should not be forced onto consumers.
UGI is the lead investor in the proposed PennEast/UGI Pipeline, a project with a $1 billion price tag. This project is unnecessary and will not benefit PA Natural Gas Customers who are already enjoying historically low natural gas prices. In fact, the opposite is true.
In PennEast’s application to FERC, they claim that this proposed interstate transmission line from Luzerne County, PA, to Mercer County, NJ, which will distribute 1 bcf of natural gas at approximately 1500 psi, is not to serve local communities, but to expand natural gas service to “southeastern Pennsylvania, parts of New Jersey and beyond.” It is this last entity that suggests this natural gas is for exportation, making this rate increase even more disturbing. While UGI aims to expand its service area for profit, it is neglecting the safety and security of its current customer base.
Consumers should be forewarned that they will pay for the costs of the proposed PennEast/UGI pipeline if it is approved. The cost of this unnecessary pipeline will be added to any rate increases approved by the PA Public Utilities Commission and will be borne by residential and commercial UGI customers.
While gas companies have been pocketing profits for years, they now want to reach into the pockets of consumers to cover the costs of what should have been routine and ongoing maintenance. Pipeline replacement should have been covered within the cost of safely operating a gas utility, but as we know, companies are often willing to forego routine maintenance in exchange for profit and at the expense of the consumers. These costs should not be forced onto consumers.
UGI is the lead investor in the proposed PennEast/UGI Pipeline, a project with a $1 billion price tag. This project is unnecessary and will not benefit PA Natural Gas Customers who are already enjoying historically low natural gas prices. In fact, the opposite is true.
In PennEast’s application to FERC, they claim that this proposed interstate transmission line from Luzerne County, PA, to Mercer County, NJ, which will distribute 1 bcf of natural gas at approximately 1500 psi, is not to serve local communities, but to expand natural gas service to “southeastern Pennsylvania, parts of New Jersey and beyond.” It is this last entity that suggests this natural gas is for exportation, making this rate increase even more disturbing. While UGI aims to expand its service area for profit, it is neglecting the safety and security of its current customer base.
Consumers should be forewarned that they will pay for the costs of the proposed PennEast/UGI pipeline if it is approved. The cost of this unnecessary pipeline will be added to any rate increases approved by the PA Public Utilities Commission and will be borne by residential and commercial UGI customers.