HARRISBURG, Pa. (CBS) — The state Public Utility Commission has approved a rate hike for customers of the city-owned gas utility, PGW.

The PUC Wednesday approved a rate hike of 6.25 percent for PGW’s half a million gas customers. The $42 million annual revenue increase is about 40 percent less than what PGW had initially requested.

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The average total monthly bill for a typical residential customer will increase from just over $94 to just under $100 per month.

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PGW maintained that warmer temperatures have contributed to a drop in revenues and that a rate hike is necessary for the utility to continue efforts to improve safety and efficiency of its system.

The new PGW rate takes effect at the end of November.