Peoples Gas and North Shore Gas Customers to Receive $1 million Credit on May Gas Bills

Credit is Early Outcome of Innovative Tool to Align Utilities and Customers to Conserve Energy

Peoples Gas (PGL) and North Shore Gas (NSG) said today that customers will receive an overall net credit of $1 million dollars on their May bills as a result of an innovative new tool that aligns utilities with customers on energy conservation.

The tool, known nationally as “decoupling,” is used effectively by 26 utilities in 13 states serving 20 million customers to promote energy efficiency. Shown on customers’ bills as a Volume Balancing Adjustment, most customers will see a credit on their May bills. The Volume Balancing Adjustment can be either a credit or a charge on monthly bills, depending on the amount of natural gas being consumed by customers.

The May adjustment is based on gas usage from March 2008. March was colder than normal and revenues collected were higher than what the utilities are expected to recover. Therefore, most customers will see a credit on their May bills.

“The new tool aligns Peoples’ and North Shore Gas’ interests with our customers to encourage conservation, protects the environment and provides the peace of mind that the utilities can focus on ensuring a safe, efficient and reliable gas delivery system,” said Jim Schott, Vice President, Regulatory Affairs.