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On October 16, 2026 Pennsylvania Gov. Josh Shapiro filed comments opposing portions of the Administrative Law Judge’s (ALJ’s) recommended decision in Peoples’ base rate case, particularly the proposed 10.20% return on equity (ROE). Gov. Shapiro argues that the decision mischaracterizes his proposal for utilities to determine ROE through transparent, competitive, market-based processes. For utilities that do not use such processes, he supports evaluating ROE against a benchmark based on the 10-year U.S. Treasury yield plus a 5-year median equity risk premium. Gov. Shapiro also disputes the ALJ’s conclusion that alternative ROE methodologies could conflict with established ratemaking principles or U.S. Supreme Court precedent. Gov. Shapiro requests that the Pennsylvania PUC reject these portions of the recommended decision.

On October 22-23, 2026 parties filed reply to exceptions to the ALJ’s recommended decision.

Peoples Natural Gas urges the Pennsylvania PUC to approve a return on equity of at least 10.20%, retain its existing capital structure, and preserve its weather normalization adjustment (WNA). Peoples also defended its proposed operating expenses, depreciation methodology, and customer charges. Regarding purchase of receivables, Peoples supported the ALJ’s recommendation to restrict POR eligibility to natural gas suppliers offering rates at or below Peoples’ default service price, arguing that the proposal could protect customers from higher supplier charges. However, Peoples clarified that CAUSE PA, not the utility, introduced the proposal and expressed support for a separate statewide proceeding if the PAPUC declines to adopt the restriction in this case.

PUC BIE supports the ALJ’s recommendations to increase the weather normalization adjustment deadband from 3% to 5% if retained, use a 10-year average for heating degree days instead of Peoples’ proposed 65-year analysis, and reject unsupported expense increases. BIE also supports reductions to labor, employee benefits, advertising, pension, and rate case expenses. Additionally, BIE recommends expanding the low-income usage reduction program (LIURP) by 75 households without increasing its budget, citing unspent program funds. BIE requests that the PAPUC reject Peoples’ and CAUSE-PA’s objections on these issues.

OSBA supports the recommendation to limit the small general service (SGS) monthly customer charge increase from $22.00 to $25.30, rather than Peoples’ proposed $32.14, and requests that the $25.30 charge be further reduced if rates are scaled back. OSBA also supports requiring Peoples to separately classify negotiated-rate customers and their revenues in its next cost-of-service study, arguing that combining them with standard tariff customers distorts cost allocation results. OSBA requests that the PAPUC reject Peoples’ objections to this requirement.

CAUSE-PA supports the recommendation to restrict purchase of receivables (POR) eligibility to natural gas suppliers charging rates at or below the utility’s price to compare (PTC) for contracts initiated or renewed after 6/1/27, while maintaining access to consolidated billing. CAUSE-PA argues that higher supplier prices contribute to increased uncollectible expenses, citing $51.9 million in charges above default service rates between 1/24 and 4/26. CAUSE-PA also supports allocating universal service costs across all customer classes and eliminating Peoples’ weather normalization adjustment. Additionally, CAUSE-PA opposes the recommended 10.2% return on equity, maintains that no rate increase is warranted, and requests a $975,000 annual budget increase to serve 75 additional low-income households through LIURP.

OCA supports eliminating Peoples’ weather normalization adjustment (WNA) or, alternatively, modifying it to better protect customers. The OCA also opposes the recommended 10.2% return on equity, proposing 8.8% or 8.5%, depending on the approved capital structure. Additionally, the OCA supports allocating universal service costs across all customer classes, limiting residential ratepayers’ responsibility for collection expenses to 50%, and requiring a root cause analysis of disparities in service terminations.

Previously parties filed exceptions to ALJ’s recommended decision filed on October 15, 2026.

Peoples opposes eliminating or modifying its weather normalization adjustment (WNA), citing $22.6 million in customer credits during the most recent heating season. Peoples support its proposed 65-year heating-degree-day methodology over a 10-year average and requests a return on equity of at least 10.20%, down from its original 11.25% request. Peoples also dispute proposed reductions to operating and collection expenses and opposes spreading universal service program costs across all customer classes, arguing that doing so would increase costs for commercial and industrial customers.

RESA opposed a proposal to restrict participation in Peoples’ purchase of receivables (POR) program to natural gas suppliers charging at or below the utility’s price to compare. RESA argues that the restriction constitutes unauthorized regulation of competitive supplier prices, unlawfully discriminates against suppliers, and lacks evidence linking POR participation to higher supplier prices or increased write-offs. RESA also warns that the proposal would disrupt existing contracts, increase supplier billing and collection costs, and undermine retail competition. RESA requests that the PAPUC reject the proposed POR restriction or address broader POR reforms in a separate proceeding.

OSBA challenges the recommendation to allocate universal service program costs across all customer classes, arguing that these programs benefit residential customers and that insufficient evidence supports imposing additional costs on commercial and industrial customers. OSBA also opposes increasing the small general service (SGS) monthly customer charge from $22.00 to $25.30, arguing that the increase lacks adequate cost justification and would reduce incentives for energy conservation. OSBA requests that the PAPUC reject both recommendations and maintain the current $22.00 SGS customer charge.

OCA opposes the proposed $105.4 million annual rate increase. OCA argues that Peoples’ rate increase should be rejected entirely or limited to approximately $9.4 million, citing customer affordability concerns. OCA challenges the recommended 10.20% return on equity, proposing 8.5%–8.8%, and seeks changes to the utility’s capital structure and depreciation methodology to reduce customer costs. OCA also opposes recovery of certain incentive compensation, employee, travel, advertising, and payment-processing expenses, as well as a proposed $500,000 annual natural gas water heater rebate pilot. Additionally, OCA requests stronger customer protections involving low-income assistance enrollment, social security number retention, rebilling practices, and tariff provisions.