Press Release

PUC Approves Settlement Reducing Rate Increase Request by Herman Oil and Gas Company

Published on 6/11/2015

Filed under: Gas

HARRISBURG – The Pennsylvania Public Utility Commission (PUC) today approved a settlement which dramatically reduces the rate increase requested by Herman Gas and Oil Company, Inc. (Herman) by nearly 50 percent, along with other steps to lessen the impact on consumers.

The Commission voted 5-0 to approve the joint settlement reached among company, the Commission’s independent Bureau of Investigation and Enforcement (I&E) and the Office of Consumer Advocate (OCA).

Herman provides natural gas distribution services to approximately 425 customers in Butler County. On March 28, 2014, the company filed a proposed rate increase seeking a $779,346 increase in annual distribution revenue – the first increase that has been requested in approximately 32 years.

Under the terms of the settlement approved by the Commission today, Herman’s request has been reduced by almost half, to an annual rate increase of approximately $420,000.  The increase will also be implemented over a three year period – rising by $210,000 in the first year and $105,000 in each of the two subsequent years – further moderating the impact and potential “rate shock” related to the increase. Additionally, the settlement stipulates that Herman agrees that it will not file any additional base rate increases with the PUC for a period of at least three years, except under extraordinary circumstances.

More information on the ratemaking process is available on the Commission’s website.

The Pennsylvania Public Utility Commission balances the needs of consumers and utilities; ensures safe and reliable utility service at reasonable rates; protects the public interest; educates consumers to make independent and informed utility choices; furthers economic development; and fosters new technologies and competitive markets in an environmentally sound manner

For recent news releases and video of select Commission proceedings or more information about the PUC, visit our website at www.puc.pa.gov.

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Docket No.: R-2014-2414379

Contact:

• Nils Hagen-Frederiksen
  Press Secretary
  717-418-2701
  nhagen-fre@pa.gov