| PGW heating
customers will soon see a new "Weather Normalization
Adjustment" (WNA) line item on their natural gas bills.
The adjustment was approved by the Pennsylvania Utility
Commission as a way to help PGW stabilize its income and
operate more efficiently within its budget during the heating
season.
The WNA can either reduce or add to the bill’s non-gas
charges, depending on weather conditions. It will result
in a reduction when temperatures are colder than normal
and an increase when the temperatures are warmer than normal.
Over time, these adjustments balance each other out.
The adjustment will affect only customers who heat with
gas and will appear on bills only during the heating season.
For budget billing customers, the WNA will be factored into
budget payments during quarterly reviews and adjustments.
Weather Normalization Adjustment FAQs
What is a Weather Normalization
Adjustment (WNA)?
The WNA is part of a new program, using a method of billing
that allows PGW to stabilize its income. It will only affect
customers who heat with gas, and will only be on bills through
the heating season. This winter, the WNA will be applied
to Customer billings during December 2002 through May 2003.
For the following two winters, the adjustment will be applied
to Customer billings during October through May.
The WNA can either reduce or add to the bill’s non-gas
charges, depending on the weather during the billing period.
It will reduce the non-gas charges when temperatures are
colder than normal. It will add to the non-gas charges when
the weather is warmer than normal. The WNA does not apply
to the gas costs or the customer charge.
Why do we need a Weather Normalization
Adjustment?
PGW’s rates are now designed to cover our operating
costs based on what we would collect during normal weather
conditions. Normal weather is based on a 30-year average
of Philadelphia-area temperatures. When temperatures during
a heating season are colder than normal, our customers’
bills more than cover our expenses. But if the weather is
warmer than normal, we do not collect enough to cover our
operating costs.
What is the benefit of this new Weather
Normalization Adjustment?
The Public Utility Commission has approved this program
in an effort to help us stabilize our income. Stable income
helps PGW to operate more efficiently within our budget.
The WNA should help us do three things:
- maintain reliable service to our customers
- maintain better financial health
- reduce the need to request frequent rate changes.
- The WNA’s effectiveness will be reviewed at the end
of three years.
Will the WNA be on every Customer’s
Bill?
The WNA applies only to heating customers. For heating
customers on budget billing, the WNA will be factored into
budget payments during quarterly reviews and adjustments.
The WNA will also be reflected on the bills of heating customers
who participate in the Customer Responsibility Program (CRP)
but payment amounts will remain the same. As for heating
customers who have enrolled in the Senior Citizens Discount
Program, the senior discount will be calculated after the
WNA is applied.
If you have more questions about WNA…
Call us at (215) 235-1000.
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