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PUC: Natural Gas Distribution Companies Prepare For Winter - Gas Consumption Expected To Decrease 1.8%, Cost For Residential Customers To Increase 1%

On December 6, the Public Utility Commission released its 2024 Winter Reliability Overview Reports from Pennsylvania’s major natural gas distribution companies (NGDCs), along with a Readiness Report from the Energy Association of Pennsylvania (EAP).

The PUC said these reports provide key insights into the utilities’ readiness to meet the energy needs of residential and business customers during the upcoming heating season.

According to the Energy Association, total natural gas consumption across all sectors is forecast to decrease by 1.8% compared to last winter, with demand expected to fall to 234.7 billion cubic feet (Bcf), compared to the 238.9 Bcf forecast for the prior heating season.

For residential consumers, the energy association projects that home heating costs will be slightly higher—approximately 1% more than last winter, according to the Energy Association.

Where Gas Comes From

The Energy Association said natural gas to meet the expected winter demand of 234.7 billion cubic feet will come from these sources-- flowing interstate gas-- 141.9 billion cubic feet; gas storage withdrawals-- 89.2 billion cubic feet; local Pennsylvania production- 2.2 billion cubic feet; and peak shaving-- 1.4 billion cubic feet. Read more here.

Key Highlights for 2024

-- Enhanced System Readiness: All NGDCs reported sufficient supplies and detailed plans to ensure reliable service throughout the winter. UGI Utilities noted a 25% reduction in Class B leaks—classified as "in-progress" leaks—over the past three years, underscoring ongoing infrastructure improvements.

-- Emergency Preparedness Drills: NGDCs highlighted a variety of internal readiness exercises conducted ahead of the winter heating season. PECO emphasized its summer emergency preparedness drills designed to ensure smooth operations during potential extreme weather events.

-- Demand for Natural Gas Generators: NGDCs affirmed their ability to meet the needs of natural gas-fired generators this winter. However, the PUC’s Technical Utility Services (TUS) division noted that significant upstream supply disruptions, beyond the control of NGDCs, could lead to curtailments for firm industrial and generation customers. NGDCs emphasized having communication and coordination plans in place for any affected customers in such scenarios.

Utility Reliability Reports

The complete Winter Reliability Overview Reports for 2024 for each natural gas utility are available using the following links:

-- Energy Association of PA

-- Columbia Gas of PA

-- National Fuel Gas

-- PECO Energy

-- Peoples Natural Gas & Peoples Gas

-- Philadelphia Gas Works

-- UGI Utilities – Gas Division

Click Here for the complete PUC announcement.

Visit the PUC's Reliability webpage for more information on natural gas and electric distribution company reliability reports.

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