HARRISBURG, PA — The Pennsylvania Public Utility Commission voted Thursday on a series of actions affecting utility customers statewide, including advancing new consumer protection regulations, opening investigations into proposed natural gas rate hikes, approving a $25 million water rate settlement in Pittsburgh, launching a railroad safety rulemaking, and securing a $2 million federal grid study grant.
What This Means for You
- Two gas utilities face investigations into proposed rate increases, with public hearings ahead.
- Pittsburgh Water rates will rise, but far less than originally requested.
- The PUC is moving to strengthen rail safety rules and modernize energy planning.
Consumer Protections Move Toward Regulation
The PUC voted 4-1 to approve a Notice of Proposed Rulemaking to incorporate longstanding consumer protections into 52 Pa. Code Chapter 56, which governs residential utility service standards.
A Notice of Proposed Rulemaking is the first formal step in updating regulations and triggers a public comment process.
Chairman Steve DeFrank said the action is intended to provide stability and clarity during a period of affordability concerns, particularly in winter months when utility bills are highest.
Following publication in the Pennsylvania Bulletin, written comments will be accepted for 60 days, with reply comments due within 90 days. The proposal will also be reviewed by the Independent Regulatory Review Commission and legislative committees.
The PUC urged customers struggling with winter bills to contact their utility to discuss payment plans or assistance programs. Consumers may also contact the PUC’s Bureau of Consumer Services at 1-800-692-7380.
Gas Rate Hikes Under Review
The Commission voted 5-0 to investigate a $19.7 million annual rate increase request by National Fuel Gas Distribution Corp., which serves more than 213,000 customers in 14 northwestern counties.
The proposal would raise the average monthly residential bill from $83.49 to $88.44, an increase of 5.9%, and increase the fixed customer charge from $14 to $19.
National Fuel also proposed a $7 million refund tied to over-collected post-employment benefit costs, including a one-time $30 credit for low-income customers and a temporary surcharge credit spread over one year.
Separately, the PUC voted 5-0 to suspend and investigate a $99.4 million rate increase request from UGI Utilities’ Gas Division, which serves approximately 690,000 customers in 46 counties.
Under UGI’s proposal, the average residential bill would rise from $113.64 to $123.55 per month, an 8.7% increase.
Suspending the requests allows the Commission to conduct a full review of the lawfulness and reasonableness of the proposed rates. Final decisions in both cases are due by October 29, 2026. Public input hearings will be announced in the coming weeks.
Pittsburgh Water Settlement Approved
In a separate 5-0 vote, the PUC approved a settlement resolving a base rate case involving The Pittsburgh Water and Sewer Authority.
The utility had requested approximately $84.4 million in revenue increases over two years. The approved settlement authorizes a $25 million annual increase, or about 10.2% over current rates.
The increases are allocated as follows:
- Water service: $16.2 million (10.1%)
- Wastewater service: $4.8 million (8.4%)
- Stormwater service: $4.0 million (14.3%)
New rates will take effect March 8, 2026.
The settlement includes expanded low-income assistance programs, automatic enrollment in arrearage forgiveness for certain customers, additional hardship grants, stormwater transparency measures, and continued customer service performance tracking.
Rail Safety Rulemaking Launched
The PUC also voted 5-0 to begin preparing updates to its railroad safety regulations under 52 Pa. Code Chapter 33, the first major revision since 2013.
Proposed enhancements include oversight of wayside detector systems — electronic trackside devices that scan trains for mechanical defects — new reporting requirements following inspections, preservation of state authority over train speeds in certain safety contexts, route analysis for trains carrying hazardous materials, and clearer identification of responsibility for bridge inspection and maintenance.
PUC staff will prepare a proposed rulemaking order within six months.
Pennsylvania has approximately 5,600 miles of track and more than 5,600 at-grade crossings, with about 65 railroad companies operating in the state.
Grid Study Funded by Federal Grant
The U.S. Department of Energy awarded the PUC a $2 million grant to conduct the Pennsylvania Accelerated Transmission and Energy Redevelopment (PATER) Study.
The study will evaluate opportunities to modernize transmission infrastructure and redevelop retired power plant sites to meet rising electricity demand.
The initiative will examine high-voltage transmission assets, identify cost-effective upgrades, and assess former generation sites that could be returned to service due to existing infrastructure.
The first phase of the study is expected to be completed mid-year and released for public comment. The second phase is anticipated by the end of 2026. The grant comes through the DOE’s Transmission Acceleration Grant program and carries no cost to state taxpayers.
Together, the Commission’s actions signal a broad focus on affordability, safety, infrastructure modernization, and regulatory oversight affecting utilities and energy consumers across Pennsylvania.
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