Summary

Natural Gas Distribution Companies (NGDCs) are defined in Chapter 22 of the Public Utility Code (Title 66) and subject to the PUC's jurisdiction. There are 30 PUC regulated natural gas distribution companies that own and operate more than 400,000 miles of pipeline in the Commonwealth. In addition, there are currently 85 licensed natural gas suppliers (NGSs) that operate in PA. Some of the larger, regional NGDCs include:

Columbia Gas of Pennsylvania, Inc.
Dominion Peoples
Equitable Gas Company
National Fuel Gas Distribution, PA Division
PECO Energy
Philadelphia Gas Works (PGW)
PPL Gas Utilities
T.W. Phillips, and
UGI Utilities

Natural Gas Service Components

There are three components to natural gas service in Pennsylvania:

1. Commodity: the natural gas itself that comes from a well in the ground.
2. Transmission: moving the gas through a series of pipelines to the consumer.
3. Distribution: when the gas is sent from the pipelines to the consumer.

The gas lines that run down the street to the consumer's residence (or commercial property) are owned and operated by the NGDC. The rates for that distribution to the consumer are regulated by the PUC.

Natural Gas Choice

Since the enactment of the Natural Gas Competition Act in 1996, many Pennsylvania residents and business owners have a choice as to who provides the gas supply that their NGDC distributes. Only PUC sanctioned suppliers can sell natural gas to PA Consumers. The price of the natural gas from your NGDC is approved by the PUC. The price my change on a quarterly basis depending on what is happening in the wholesale market.

Glossary of Common Terms:

City Gate -- The point where the interstate pipeline delivers gas into an NGDC facility.

McF -- measure of gas usage (1,000 cubic feet of natural gas).

Ccf -- 100 cubic feet of natural gas.

Supplier of Last Resort (SOLR) -- The entity (typically the NGDC) that will provide gas service if (1) the consumer's chosen supplier is a unable to provide service, (2) the consumer chooses to receive service from the SOLR, (3) the consumer does not choose an alternate supplier, and (4) the consumer is refused service by the alternate supplier.

Hot Topics

Natural Gas Prices
Philadelphia Gas Works
DISC (Distribution Improvement System Charge)
Natural Gas Competition

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