House Consumer Protection Hears Comments On Natural Gas Infrastructure

The House Consumer Protection Committee this week held another in a series of informational meetings, this time on the natural gas industry. Much of the discussion revolved around the need to develop infrastructure funding tools, like the distributed system improvement charge (DISC) now used by drinking water suppliers.

 

Sonny Popowsky, the Consumer Advocate, said natural gas consumers have been well served by the current competitive market in spite of the fact there has been a "roller coaster" in the cost of gas. He noted that 7 percent or 185,000 customers now get their gas from competitive suppliers.

 

Popowsky said he was opposed to using DISC to fund natural gas distribution system rehabilitation because the companies are now doing the work under their existing rates.

 

Representatives of several major natural gas suppliers indicated their support of a DISC system: Tom Knudsen, Philadelphia Gas Works,Terrence Murphy, Columbia Gas of PA and Vicki Ebner, UGI, Inc.

 

J. Michael Love, Energy Association of PA, noted 52 percent of homes in the state use natural gas and offered several comments to the Committee promoting a larger share of low-income heating assistance funds for natural gas companies, reporting the provisions related to utility shutoff and getting customers to pay their bills is working and he supported the DISC system.

 

Majority Chair Rep. Joseph Preston (D-Allegheny) announced he is inviting major stakeholders to a meeting this Spring for a specific discussion of DISC. Rep. Robert Godshall (R-Montgomery) serves as Minority Chair of the Committee.