Ohio Valley Gas Proposes Rate Increase

Press release from the Indiana Office of Utility Consumer Counselor

(Undated) - The Indiana Office of Utility Consumer Counselor (OUCC) is encouraging Ohio Valley Gas customers to comment on the utility’s pending rate case, through both written comments and the case’s upcoming public field hearing in Winchester.

The OUCC – which represents consumer interests in cases before the Indiana Utility Regulatory Commission (IURC) – is accepting written consumer comments for the case record through July 11, 2012.

In addition, an Indiana Utility Regulatory Commission (IURC) public field hearing will be held on Wednesday, July 11, 2012 in the Winchester Community High School Auditorium (700 N. Union St. in Winchester). The hearing’s public comment portion will begin at 6:00 p.m.

Sworn oral and written comments regarding the rate case will be accepted during the field hearing.

Oral and written consumer comments carry equal weight and will become part of the official evidentiary record considered by the IURC in reaching its final decision.

Commissioners are not allowed to answer consumer questions during the formal field hearing. (However, OUCC and IURC staff will be available before, during and after the hearing.)

An OUCC informational session on the regulatory process and public field hearing procedures will start at 5:30 p.m.

Ohio Valley Gas Corporation and Ohio Valley Gas, Inc. provide natural gas utility service 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 nearly $4.54 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 – ANR pipeline service area 

Dubois, Jay, Randolph, Spencer & Wayne Counties  

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

OVGI service area
Greene, Knox, Pike, Sullivan, & Vigo Counties  

Usage

Current

Proposed 

Current

Proposed 

Current 

Proposed 

20 therms/month

 $36.06

 $39.62

 $38.24

 $41.13

 $36.60

 $40.42

50 therms/month

 $68.40

 $76.54

 $73.86

 $80.32

 $69.74

 $78.54

100 therms/month

 $122.30

 $138.09

 $133.21

 $145.65

 $124.98

 $142.09

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, continues every three months.

The OUCC is reviewing the utility’s request and is scheduled to file testimony on July 12, 2012.

Consumers who cannot attend the field hearing may provide written comments to the OUCC online 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.”

For more information, please visit the OUCC’s Website at www.in.gov/oucc/2693.htm.