Peoples Gas wants to raise rates for the average residential customer by just over $16 a month, according to a request filed Friday with the Pennsylvania Public Utility Commission.
The hike would amount to another $163 million in annual revenue for the gas utility, which serves more than 700,000 homes and businesses across 18 Pennsylvania counties, including Allegheny, Armstrong, Beaver, Butler, Fayette, Washington and Westmoreland.
Peoples says the funds are needed to replace aging pipes and decrease greenhouse gas emissions as part of its long-term infrastructure improvements plan, a multi-year push to modernize its aging network. The higher rates would also cover “ongoing business costs,” the utility said in a press release on Friday.
The state’s Public Utility Commission reviews proposed rate hikes to ensure they are necessary and not overly burdensome for consumers. Utilities often get partial approval, though their requests are sometimes granted or denied in full.
The review process takes about nine months, accounting for a 60-day notice period and seven-month investigation. That means bills wouldn’t increase until the second half of December at the earliest.
Peoples acknowledged the hardship that more costly gas might cause, and encouraged anyone concerned about their ability to pay to visit the Peoples website or call its customer assistance line at 1-800-400-9276.
But the utility’s capacity to provide safe, reliable energy “depends on the maintenance and upgrades of our critical infrastructure,” Rita Black, director of community assistance programs for Peoples, said in a statement.
The Essential Utilities-owned company — and future American Water subsidiary if its merger with Essential goes through — manages more than 15,000 miles of pipes. The deal is expected to close in the first quarter of 2027.
It has replaced nearly 2,000 miles of pipes since its modernization program kicked off in 2013. Last year saw Peoples upgrade almost 200 miles worth of pipeline.
