Pittsburgh, Pa. − June 3, 2026 − Today, the Pennsylvania Public Utility Commission (PUC) will host two in-person hearings at the Ross Township Community Center to gather public input on a proposed rate increase by Peoples Natural Gas Company. Ahead of these hearings, Senator Lindsey M. Williams (D-Allegheny) issues the following copy of her testimony:
“I first want to thank the PUC for their kind response to my request to host a hearing for this rate case within Senate District 38. Peoples Gas covers a large territory here in Western Pennsylvania—over 700,000 people—many of whom live and work here in District 38. I’m grateful for the opportunity for my constituents and the rest of Allegheny County to have an opportunity to have their voices heard in person on this matter.
I apologize that I am not here in person today to express my extreme opposition to Peoples Natural Gas Company’s proposed rate increase of 13.8%, as I am currently in Harrisburg for budget negotiations. My colleagues and I are working to improve affordability for the people of Pennsylvania, and that includes addressing the unacceptable rise in utility costs that we are all facing.
In contrast, Peoples states plainly in the Introduction to their rate case that this increase is being filed “principally to allow it to earn a fair return on investments.” Without the rate increase, investors would stand to receive “only” a 7.14% return on equity. According to Peoples Gas, this will drive investors away, leading to a cashflow shortage that will make infrastructure upgrades and paying their workers impossible. Instead, Peoples is looking to give their investors with a much more generous 11.25% rate of return.
What’s more frustrating is that Peoples made this exact same argument in their 2024 filing. That case was settled with a 12% rate increase less than 2 years ago, with the Office of the Consumer Advocate refusing to join the settlement because Peoples main rationale was that that their INVESTORS deserved better, not their customers. And now we’re back, with yet another request for the public to subsidize Peoples’ investors.
Customers cannot even offset this proposed increase by conserving energy, as most of the requested increase would come from the fixed monthly customer charge. That fee would go from $16.80 to $26. That fee rose $2.30 in the 2024 rate case, meaning if this increase is granted, customers would see their fixed charges increase $11.50 per month in two years.
In his budget address and subsequent April 29th letter to utility companies, Governor Shapiro made it clear that Pennsylvania consumers should not be asked to pay a single dollar more than is needed to support a safe and reliable utility system. He then laid out three principles that all rate increase proposals will be evaluated by. “First, utilities should seek to raise the most cost-effective forms of capital. Best practices now require you to protect consumers by disfavoring expensive equity when lower-cost debt is available…. Consumers should not be expected to bolster corporate profits through over-reliance on costly equity.”
Today’s rate increase is exactly the kind of request that Governor Shapiro is referencing. Peoples isn’t proposing to expand services, improve reliability, or meaningfully increase customer assistance programs. They are asking to improve shareholder value.
I’ve heard from so many constituents about how increased costs, especially on their utility bills, are impacting their lives. Our food banks are overwhelmed with need, and the uncertainty of federal funding for programs like SNAP, LIHEAP, and Medicare/Medicaid have left families in crisis. We’ve already helped hundreds of seniors file for their Property Tax/Rent Rebates this year because our fixed-income individuals are relying on that refund to make ends meet. Simply put, the hardworking families of Pennsylvania cannot and should not be expected to pay more for their utilities, especially not to subsidize the investor class.
I strongly urge Peoples Gas to withdraw this rate increase request completely.”
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