Lawrenceburg Gas Co.
UPDATE: The Indiana Utility Regulatory Commission (IURC) approved a final order in this case on June 20, 2007, authorizing a $1.33 million increase in annual operating revenues. The 15-page order is available on the IURC Website, in PDF format, by clicking here.
The following fact sheet was distributed at the OUCC public information meeting and IURC public field hearing on Jan. 10, 2007 in Lawrenceburg.
IURC Cause No. 43090
On July 28, 2006, Lawrenceburg Gas Company filed a petition with the Indiana Utility Regulatory Commission (IURC) seeking approval of new base rates and charges. The utility subsequently filed testimony and exhibits in this case. Lawrenceburg Gas Company is an investor-owned entity, based in Greendale, which serves approximately 6,400 customers in portions of Dearborn, Franklin and Ohio Counties.
Residential natural gas bills have two major components: 1) The base distribution rate and 2) The gas cost adjustment.
The utility’s proposal in this case would increase the base distribution rate for customers.
- The base distribution rate accounts for approximately 25-30 percent of a typical residential heating bill. It covers “non-gas” costs including operating and maintenance expenses, along with capital improvements.
- Lawrenceburg Gas Company’s current base distribution rates were approved in 1992. The utility indicates in testimony that it is seeking the increase to cover higher operating and maintenance costs.
- The utility’s proposal would increase its annual base distribution rate revenues by approximately $2.11 million (a 63.86 percent increase over current revenues) and would unify rates for customers in the Lawrenceburg and Brookville divisions into a single tariff.
- For residential heating customers, the utility’s pending request would increase the flat monthly customer charge from $9.11 to $12.00 and would increase per-therm delivery charges (specific per-therm amounts would decrease with usage).
- The current customer charge and delivery charge, combined, yield a base distribution rate of $42.08 for a Lawrenceburg Division residential customer who uses 100 therms of gas in a given month.
- A customer with the same usage in the Brookville Division currently pays a $32.99 distribution rate in the same month.
- The utility’s proposal would increase the base distribution rate (including the customer service charge and the delivery charge) for such a customer in either division to $70.17.
- For residential heating customers, the utility’s pending request would increase the flat monthly customer charge from $9.11 to $12.00 and would increase per-therm delivery charges (specific per-therm amounts would decrease with usage).
This case is separate from the gas cost adjustment (GCA) process, which allows utilities to recover supply costs of natural gas purchased on the competitive, national wholesale market.
- These costs account for approximately 70-75 percent of a typical residential heating bill.
- Under Indiana law, Lawrenceburg Gas Co.’s GCA factor is adjusted quarterly to reflect changes in actual supply costs.
- Gas cost adjustments for all Indiana natural gas utilities require OUCC review and IURC approval.
Based on data for the 12-month period ending April 30, 2006, a total monthly bill for a residential customer using 100 therms of gas and living in the utility’s Lawrenceburg Division would increase from $146.62 to $175.17. The same data for a customer in the utility’s Brookville Division show an increase from $137.59 to $175.17.
The Indiana Office of Utility Consumer Counselor (OUCC) is the statutory representative for the interests of all utility consumers in this case and in all proceedings before the IURC.
- The OUCC filed testimony in this case on December 22, 2006 recommending that a base distribution rate increase be granted but limited to no more than approximately $955,000 (an increase of approximately 27.88 percent over current revenues).
- The OUCC’s position differs from the utility’s request on several points including insurance costs, legal fees, income taxes and other operating cost issues.
On January 10, 2007, an IURC public field hearing will be held in Lawrenceburg, Indiana.
- Consumers will be able to submit testimony in the form of written or oral comments. The comments will become part of the official evidentiary record to be considered by the IURC in reaching its final decision on the city’s request. Consumer comments, whether written or oral, are given equal consideration.
- The OUCC reserves the right to file additional testimony if necessary, based on evidence presented during the public field hearing.
On January 24, 2007, the IURC is scheduled to hold a technical evidentiary hearing in this case. The hearing, scheduled for 9:30 a.m. in Room E-306 of the Indiana Government Center – South, is open to the public. However, participation in evidentiary hearings is typically limited to the cross-examination of technical witnesses who have filed testimony on behalf of the proceeding’s formal parties.
All filing deadlines and hearing dates in any legal proceeding are subject to change.
A settlement agreement is possible in any legal proceeding; such an agreement would be subject to IURC approval.
Consumers with questions or concerns about this case or other utility issues are encouraged to contact the OUCC’s consumer services staff toll-free at 1-888-441-2494 or through the agency’s Website.
For more details on natural gas bills and charges, please read the OUCC’s “Understanding Natural Gas Prices” and “Gas Cost Adjustments” fact sheets.
All publicly filed documents in this case are available online by:
- Visiting www.in.gov/iurc
- Clicking the “Electronic Filing” link
- Clicking the “Search Cases” link near the upper left corner of the following page
- Entering docket number 43090 in the first field on the search page
- State agency
- Represents the interests of all utility consumers and the general public on issues concerning electric, natural gas, water, sewer and telecommunications utilities
- Staff of accountants, engineers, economists, attorneys, consumer services and support personnel
- Participates in regulatory and legal proceedings
- Provides consumers with a voice in utility policy
- Responds to consumer questions and information needs
- State agency
- Regulates many, but not all, Indiana utilities
- Regulates utility rates, financing, service territory, quality, etc.
- Required by law to make decisions that balance the interests of utilities and consumers
- Neutral, fact-finding body
- Authority to investigate utility rates and practices
What is the difference?
Public Information Meeting
- Facilitated by the OUCC
- Opportunity for attorney (OUCC) and client (consumers) discussion
- Opportunity for consumers to advise OUCC staff of concerns
- Provides an opportunity for consumers to ask questions and receive information
- Opportunity for consumers to make written comments that can be entered into the official record considered by the IURC in its decision
Public Field Hearing
- Conducted by the IURC
- Formal, legal proceeding presided over by an Administrative Law Judge and recorded by a court reporter
- Often required by law
- Conducted in utility’s service territory
- Allows consumers to make sworn written or oral comments on the utility’s proposal, its service and any other relevant issue
- Not a question and answer/discussion format; designed to allow consumer comment
- Consumers providing oral comments may, at the conclusion of their testimony, be asked questions by the judge, commissioners or an attorney for any formal party to the proceeding
- Comments are part of the official public record considered by the IURC in making its decision
Prepared by the OUCC
100 North Senate Avenue, Room N501
Indianapolis, IN 46204-2215
Toll-free 1-888-441-2494
Voice/TDD (317) 232-2494
Fax (317) 232-5923
www.IN.gov/OUCC
uccinfo@oucc.IN.gov
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