Ohio Valley Gas Proposes Rate Hike

Press release from Indiana Office of Utility Consumer Counselor

(Indianapolis, Ind.) - The Indiana Office of Utility Consumer Counselor (OUCC) is inviting public comments as it reviews the proposed base rate increase requested by Ohio Valley Gas Corporation and Ohio Valley Gas, Inc.

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 July 12, 2012. Consumers who wish to provide written comments on the case in the meantime may submit them to the OUCC’s consumer services staff via mail, email or fax.

Ohio Valley Gas is a privately-owned utility with customers in 16 east-central, southern and western Indiana counties. According to its testimony, the utility is seeking the increase due to higher operating and maintenance costs along with a number of infrastructure improvements, including pipeline extensions, improvements and replacements, and new, automated meters for all customers. 

The request would increase the combined annual revenues of OVGC and OVGI by approximately $4.53 million. The flat, monthly customer charge for all residential customers would increase from $14.50 to $15.00, with the impact on the base rate’s volumetric portion varying by region.

According to its testimony and exhibits, the utility’s request would increase monthly residential bills as follows:

OVGC – Texas Gas pipeline service area - Dearborn, Fayette, Franklin, Perry, Ripley, Spencer, & Union Counties

Current Bill

Proposed Bill

20 therms/month

$38.24

$41.13

50 therms/month

$73.86

$80.32

100 therms/month

$133.21

$145.65

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. Current base rates for Ohio Valley Gas were approved in October 2007.

Wholesale natural gas supply costs, which currently make up approximately 54 percent of a typical Ohio Valley 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, will continue every three months.

An IURC technical evidentiary hearing is scheduled to start on August 28 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. 44147.” The OUCC needs to receive consumer comments by July 5 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/2693.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.