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ALJ Agrees With Consumer Groups To Require Utility To Send Letters To Low-Income Shopping Customers Who’s Rates Exceed Default Service Price

Dockets: R-2025-3053499
Category: Pennsylvania
Related Categories: Columbia Gas, Gas, Rate Case, Rate Change, Utility

From the Secretarial Letter:

“Enclosed is a copy of the Recommended Decision of the Office of Administrative Law Judge. If you do not agree with any part of this decision, you may send written comments (called Exceptions) to the Commission. Your signed Exceptions to the decision, if any, must be: 1) filed with the Secretary of the Commission, and 2) to each party of record. Exceptions are due by 4:30 p.m. on October 14, 2025.”

“Replies to Exceptions, if any, must be filed with the Secretary of the Commission and served on each party of record and the Commission’s OSA, in the manner described above. They are due by 4:30 p.m. on October 21, 2025.”

Excerpt from ALJs’ Recommendation Regarding Competitive Issues: 

“AS Cause-PA explained the Choice Act defines the term “universal service and energy conservation programs” as: “Policies, practices and services that help residential low-income retail customers … to maintain natural gas supply and distribution services.”2881 The Act requires that the Commission ensure these programs are “available in each natural gas distribution service territory”2882 to, inter alia, “assist low-income retail customers to afford natural gas service.”2883 AS CAUSE-PA noted, the Act recognizes that the ability of low income customers to both afford and maintain gas service to their home is of paramount concern. However, the evidence suggests at least 1 in 4 of Columbia’s low-income shopping customers are categorically unable to afford to maintain service to their home, resulting in involuntary termination at rates which surpass low-income default service customers. 

“OCA witness Alexander and CAUSE-PA witness Geller recommend that the Commission require Columbia to send targeted communications to customers who are enrolled with a Natural Gas Supplier and paying rates that are higher than the Company’s Price to Compare. Ms. Alexander recommends that the Company be required to send targeted educational messages to these shopping customers explaining how to compare NGS charges per therm to the PTC and “urg[ing]” them to compare rates on a monthly basis.2884 Mr. Geller recommends that the Commission require the Company to develop a targeted letter for low-income shoppers being charged rates higher than the PTC that is sent at least once every 6 months and includes clear instructions for applying to CAP.2885 Columbia submits these proposed communications to shopping customers should be rejected.

“It is well established that a base rate case is the proper venue for hearing the customer service issues raised in the proceeding. In addition, it is not required that a specific law, order or policy be in effect that specifically requires the relief requested by OCA and CAUSE-PA to be implemented by the Company. Section 1501 of the Code requires the utility to provide safe, adequate and reasonably continuous service.2895 For all of the reasons set forth above, we recommend that the proposals of OCA and CAUSE-PA be implemented by the Company, consistent with the Ordering paragraphs herein.

R-2025-3053499 Rd Sec Letter.Pdf
Recommended Decision  (10/03/2025)
R-2025-3053499
(Columbia Gas of PA Inc filed Supplement No. 392 to Tariff Gas Pa. P.U.C. No. 9 which is a general rate increase effective May 19. 2025.)