Recent comments in /f/Pennsylvania

C4bl3Fl4m3 t1_j9wcxl4 wrote

Ah, the cot-caught merger. Good times, good times.

My accent is extra fun because I grew up in South-Central PA but with recent transplants from the Pittsburgh area. So I've got, primarily, a SC PA accent/dialect (soda not pop), missing a few SC PA words/phrases (I never learned "all" for "all gone"), and I've got a few words/phrases of Pittsburgheze in my vocabulary (redd up, sweeper, gum bands, slippy, the need + past participle thing ("the grass needs cut"), and, of course, kibossy) because my parents taught me how to talk. But I can understand Pittsburgheze pretty well (growing up visiting my relatives out there).

Oh, and then I moved further South so I say y'all. So that's even more fun!

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pa_bourbon t1_j9wb6qd wrote

I said they sell the gas at cost. I didn’t say they made no money.

Utilities operate on an allowable rate of return on invested capital on the allowable rate base. Invested capital to a gas utility is made up of pipes, pumping stations, valves, storage facilities, buildings and vehicles, computer systems, etc.

In a complex calculation, these assets depreciate a little of their value each year throughout their useful life. The role of the PUC is to set the allowable return on that asset base, then the utility needs to manage rates to that return in consultation with the PUC on a periodic basis.

But the gas is straight pass through at cost. They make their money on the fixed fee charged monthly and other charges on the bill (distribution charges, special riders as agreed by the PUC, etc).

Natural Gas prices have plunged recently. The commodity charges get adjusted by the PUC quarterly to make sure there is no profit on the gas. A downward adjustment is coming soon depending on your utility’s schedule.

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