Direct Energy Business
Market Data For Your Home Contact Us

Pennsylvania House Bill 1188 Could Affect Your Retail Natural Gas

read | Share:

PA House Bill 1188, introduced by Representative Payne, currently awaits action in the PA Senate and could affect your retail natural gas within the next year.

House Bill 1188 proposes to create a more level playing field between the utilities and retail natural gas providers by balancing out the costs of serving customers and creating a more apples-to-apples price comparison between utilities and suppliers. Utilities, also known as Natural Gas Distribution Companies (NGDC), will be required to refund natural gas customers revenues collected from them that exceed the amount of actual natural gas costs incurred, and will also be permitted to recover from customers any amount by which actual natural gas costs have exceeded revenues.

NGDCs will only be permitted to recover costs if their actual natural gas costs exceed revenues collected by more than 10% in the previous 12-month period due to customers switching to natural gas suppliers. This will be collected through a non-bypassable surcharge, which the Commission must first approve.

There are approximately eight session days left for the legislature to vote on HB 1188 this year, so stay tuned for updates.

Posted: November 19, 2013