Published April 05. 2016 04:00PM
Concerned residents from throughout the Lehigh Valley gathered in Harrisburg outside the "smart hearing" and delivered a petition to the Public Utilities Commission.
Residents provided testimony opposing the proposed 19.7 percent rate increase for UGI's natural gas customers. The petition, signed by over 1,200 people, calls on the PUC to deny UGI's request to pass the $58.6 million cost of replacing outdated bare steel and cast-iron distribution lines onto consumers instead of using its profits to provide what should be routine and scheduled maintenance.Linda Christman of Save Carbon County said, "One of the reasons UGI is raising their rates is that customers are conserving energy by making energy-efficient choices in their homes. Instead of rewarding them, the company is raising their rates substantially. There's something wrong with that."Tara Zrinski, local coordinator for Food and Water Watch, said, "UGI needs to be vigilant in its obligation for safety to the consumers it serves yet, UGI seems more concerned with maintaining its profit margin and expanding service to new customers."The rate increase will produce about $58.6 million to cover costs associated with the distribution of gas to residential and commercial customers.The requested rate increase is being driven, in part, by the cost of replacing the outdateddistribution 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.UGI recently implemented a 6.7 percent rate decrease that took effect in late 2015. That decrease was required because the wholesale cost of natural gas is at historic lows, and by law, those savings must be passed onto customers.UGI is the lead investor in the proposed PennEast/UGI pipeline, a project with a $1 billion price tag.