NORRISTOWN — The four public witnesses testifying Wednesday afternoon against a proposed 11.2 percent PECO Energy rate hike for natural gas distribution were largely outnumbered by the attorneys, public relations managers and an administrative law judge running the public input hearing at municipal hall.

The regional utility filed several supporting statements from financial experts arguing the $98.3 million rate hike was needed to offset a large decrease in operating income and numerous jumps in employee pay, pensions and health insurance.

Natural gas revenues have declined about 13 percent since 1992 as customers purchased more efficient gas appliances and heaters while heavily insulating their homes to further cut heating costs.

PECO's last increase in base rates for natural gas distribution was filed in April 1987, 21 years ago, with the Pennsylvania Public Utility Commission (PUC).

Tanis Van Buskirk of Norristown said she objected to PECO "raising its rates again. I approved when PECO lowered the gas prices."

Van Buskirk complained that PECO was already planning to raise its "electric rates 20 to 30 percent more" when rate caps imposed by a state agreement were lifted in 2010.

PECO spokesmen have estimated the cost increase would amount to a 20 percent rate hike in 2010.

"Please don't raise it 11 percent," Van Buskirk said. "I know the cost of everything goes up only 4 percent a year."

State Rep. Jay Moyer, R-70th Dist., said "approving this rate increase now would be extremely bad timing and could cause great harm."

Moyer estimated PECO's rate hikes in 2010 would be 25 to 30 percent. "Adding the $98.3 million rate increase will increase their bills by an average of 10.8 percent on top of that," he said. "I respectfully ask that the commission act as a moderating voice on this matter and deny PECO the rate increase it is seeking."

Moyer said 40,000 residents and 5,000 business customers in his district would be hit by the natural gas increase.

East Norriton resident Virginia Fitzpatrick urged PECO to "expand the program that promotes awnings, shade trees and fireplace inserts" as a means for reducing natural gas usage.

PUC Administrative Law Judge Marlane R. Chestnut said she would consider all the testimony before making a written recommendation to the commission in late October or early November.

The PUC must act on the rate request sometime before Dec. 31, when the rate hike would go into effect.

By CARL ROTENBERG, Special to The Phoenix 07/24/2008