Comments Accepted On Proposed Gas Rate Hike

News release from Indiana OUCC 

(Undated) - The Indiana Office of Utility Consumer Counselor (OUCC) is inviting public comments as it reviews South Eastern Indiana Natural Gas Company’s request for an increase in its base rates and charges.

The OUCC - the state agency representing consumer interests in cases before the Indiana Utility Regulatory Commission (IURC) - has not yet taken a position on the utility’s request but is currently scheduled to complete its review and file testimony on May 17, 2012. Consumers who wish to provide written comments on the case in the meantime may submit them to the OUCC’s consumer services staff through the agency’s Website or via mail, email or fax.

South Eastern Indiana Natural Gas Company is a privately-owned utility with customers in portions of Ripley and Dearborn counties. Its request would increase the monthly residential customer charge from $8.92 to $11.61 and would also increase the base rate’s volumetric portion by 30.15 percent. According to its testimony in this case, South Eastern Indiana Natural Gas Company is seeking the increase to improve financial soundness and “assist in establishing rates sufficient to cover all of its current operation expenses, and appropriately compensate the utility’s investors.” In addition, the utility is seeking approval to issue up to $250,000 in long-term debt.

The proposed increase in this case would apply to the utility's base distribution rate, which comprises nearly half of a typical residential natural gas customer’s monthly heating bill. Base distribution rates cover “non-gas” costs such as operating and maintenance expenses, and capital and infrastructure improvements. South Eastern Indiana Natural Gas Company’s current base rates were approved in January 2008.

Wholesale natural gas supply costs, which currently make up approximately 53 percent of a typical South Eastern Indiana Natural Gas customer’s bill, are recovered on a dollar-for-dollar basis through the state's Gas Cost Adjustment (GCA) process. The utility’s GCA process, which includes an OUCC review and requires IURC approval every three months, will not be affected by this case.

An IURC technical evidentiary hearing is scheduled for July 26 in Indianapolis. While evidentiary hearings are open to the public, participation is typically limited to attorney cross-examination and Commission questioning of technical witnesses who have filed financial or engineering testimony.

Consumers are invited to submit written comments in this case through the OUCC’s Website at www.in.gov/oucc/2361.htm, or by mail, email, or fax:

Mail: Consumer Services Staff
Indiana Office of Utility Consumer Counselor
115 W. Washington St., Suite 1500 South
Indianapolis, IN 46204

Email: uccinfo@oucc.IN.gov

Fax:     (317) 232-5923

Written comments should include the consumer’s name, mailing address, and a reference to “IURC Cause No. 44128.” The OUCC needs to receive consumer comments by May 10 to ensure that they are included in the case record.

Additional information on this case, including the utility’s testimony, is available on the OUCC Website at www.in.gov/oucc/2689.htm. Consumers with questions about submitting written comments can contact the OUCC's consumer services staff toll-free at 1-888-441-2494.

A guide to understanding natural gas prices and tips for managing energy bills are among the free publications the OUCC offers. All OUCC publications are available on the agency’s Website or by calling the agency toll-free.