Nick Hoffman has been limiting food purchases and driving as consumer prices have risen.
And the proposed overall rate increase of about $163.2 million by Peoples Natural Gas Co. LLC worries him.
“When you cut down on essentials, what’s left to cut down on?” Hoffman of Indiana told TribLive on Wednesday at a public input hearing held in Greensburg by the Pennsylvania Public Utility Commission.
The proposal by Peoples would raise rates for the average residential customer by just over $16 a month, according to the commission, which reviews proposed rate hikes to ensure they are necessary.
The commission unanimously voted in April to suspend and investigate the proposed rate increase.
The case was assigned to Administrative Law Judge Charece Collins for an investigation, which includes public input hearings to gather testimony. There will be evidentiary hearings held Aug. 5-7 in Harrisburg. Collins will then make a recommendation to the commission.
A final Public Utility Commission decision is due by Dec. 26.
The hearings Wednesday drew scant public interest. Between two hearings held at the Westmoreland County Courthouse, only two people showed up — one opposed to the hike and another defending it.
Despite the limited attendance, Hoffman said it is still impactful to show up.
“It’s important so they know we’re paying attention,” he said.
Hoffman said the price increase is too high. He said Peoples should have taken into account how much it was going to replace pipelines instead of relying on increasing rates to fund those projects.
But not everyone disagreed with the price increase.
Mike Daniher is the chief operating officer for the Laurel Highlands Council Scouting America and the fire chief at Southern Allegheny Valley Emergency Services.
He said that the gas company not only has supported the Laurel Highlands Council through a youth mentorship program and their Eagle Scout Recognition Center but also the fire department.
As a fire chief, Daniher said, the No. 1 response the company goes to are natural gas emergencies. It was dispatched to more than 100 last year.
On Tuesday night, it was dispatched to a home because a woman thought she smelled gas. When the fire company told her it was not gas, she still wasn’t confident. So they called Peoples.
Peoples employees came out for unfounded natural gas 61 times last year, he said.
Volunteers spend two hours responding to these emergencies.
“So having the money to improve infrastructure, we’re a big advocate,” Daniher said. “Any money that goes toward that we would appreciate because that’ll ultimately, statewide, allow us to respond to many less emergencies.”
Although this benefit would come with a price increase, Daniher said consumers have had time to prepare for it.
“Sixteen dollars (a month) — I don’t think is a significant expense,” he told TribLive.
The natural gas utility serves more than 700,000 homes and businesses across 18 Pennsylvania counties, among them Allegheny, Armstrong, Beaver, Butler, Fayette, Washington and Westmoreland.
Meagan Moore, an attorney for Peoples, said any increase will be used to improve and modernize its natural gas infrastructure.
Peoples said in a March news release the increase would support the replacement of aging pipelines while decreasing greenhouse gas emissions as part of its long-term infrastructure improvement plan. It also will provide for “ongoing business costs.”
“We understand that the increase in any bill is never an easy thing,” Moore said. “We are working very hard to make sure we keep costs reasonable and affordable, while ensuring that your infrastructure is safe and reliable for many years to come.”
Peoples has replaced nearly 2,000 miles of pipes since its modernization program began in 2013. Last year saw almost 200 miles worth of upgraded pipeline.
Public hearings were held in Cambria County and Allegheny County on June 2 and 3, respectively.
Call in to hearing today
A hearing with access by telephone will be held at 1 p.m. and 6 p.m. Thursday.
To participate, call 888-795-4352 and enter PIN Number 72378378 when instructed.