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Ohio Valley Gas Rate Fact Sheet

The following fact sheet was distributed at the OUCC public information meeting and IURC public field hearing on July 9, 2007 in Winchester.

OUCC Fact Sheet

Ohio Valley Gas Rate Cases
IURC Cause No. 43208/43209

On January 8, 2007, Ohio Valley Gas Corporation (OVGC) and Ohio Valley Gas, Inc. (OVGI) filed petitions with the Indiana Utility Regulatory Commission (IURC) seeking increases in base distribution rates and charges. Both utilities filed testimony and exhibits in support of the requests on March 30 and April 13.

  • OVGC serves 11 east-central and southern Indiana counties (Dearborn, Dubois, Fayette, Franklin, Jay, Perry, Randolph, Ripley, Spencer, Union, and Wayne) and is seeking to increase its annual operating revenues by approximately $5.5 million.

  • OVGI serves 5 western Indiana counties (Greene, Knox, Pike, Sullivan, and Vigo) and is seeking to increase its annual operating revenues by approximately $697,000.

  • OVGI is a subsidiary of OVGC. Both are investor-owned utilities based in Winchester, Indiana and serve a total of approximately 31,000 customers.

Residential natural gas bills consist of two key components: 1) The base distribution rate and 2) The gas cost adjustment (GCA).

Ohio Valley’s proposals in these cases would increase the utilities’ base distribution rates.

  • Base distribution rates comprise approximately 25 to 30 percent of an average residential heating bill and cover “non-gas” costs such as operating and maintenance expenses, and capital improvements.

  • Ohio Valley’s current base distribution rates were approved in January 2003. The utilities indicate in testimony that the requested increases would pay for higher operating and maintenance costs.

  • The proposed base rate increases in these cases would increase the flat, monthly facilities charge (or customer service charge) from $13 to $16, while also increasing per-therm delivery charges.

  • Ohio Valley is also seeking approval of a Normal Temperature Adjustment (NTA). This mechanism, similar to those that have been approved for a number of other Indiana natural gas utilities, would allow Ohio Valley to adjust customer distribution charges to help mitigate extreme weather fluctuations.

These cases are 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 to 75 percent of a typical heating bill.

  • Under Indiana law, Ohio Valley’s GCA factors are adjusted quarterly to reflect changes in actual supply costs.

  • Gas cost adjustments for all Indiana natural gas utilities require OUCC review and IURC approval. Utilities are allowed to pass wholesale costs to customers on a dollar-for-dollar basis, but may not profit off these pass-throughs.

Total customer bill increases under Ohio Valley’s proposals would vary depending on usage. Ohio Valley’s testimony and exhibits include the following projections for residential and small commercial customer bills (based on gas costs over a one-year period ending June 30, 2006):

 

Service Area

20 therms/month

50 therms/month

200 therms/month

 

Current

Under Utility’s Proposal

Current

Under Utility’s Proposal

Current

Under Utility’s Proposal

OVGC ANR Service Area (Bretzville, Deerfield, Ferdinand, Fountain City, Harrisville, Haysville, Lynn, Maltersville, Pennville, Portland, Ridgeville, St. Anthony, St. Marks, St. Meinrad, Saratoga, Union City, Winchester)

$37.76

$42.43

$74.90

$82.09

$260.58

$280.34

OVGC Texas Gas Service Area (Brownsville, Cannelton, Connersville, Everton, Guilford, Lawrenceville, Liberty, Lyonsville, New Alsace, Penntown, Springersville, St. Leon, Sunman, Tell City, Troy, Yorkville)

$38.96

$46.12

$77.90

$91.29

$272.60

$317.16

OVGI Service Area (Arthur, Ayrshire, Blackhawk, Campbelltown, Cass, Curryville, Dugger, Farmersburg, Hymera, New Lebanon, Riley, Shelburn, Sullivan, White Rose, Winslow)

$38.14

$43.22

$75.84

$84.05

$264.36

$288.18

The Indiana Office of Utility Consumer Counselor (OUCC) is the statutory representative for the interests of all utility ratepayers in these cases and other IURC proceedings.

  • The OUCC has not yet taken a position in these cases, with the agency’s legal and technical staff continuing to review the utility’s requests and evidence.

  • The IURC has established a July 17 deadline for the OUCC to complete its review and file testimony. The OUCC may file additional data in support of its position on July 31.

On July 9, an IURC public field hearing will be held in Winchester.

  • Consumers will be able to submit testimony in the form of written or oral comments.

  • Comments will become part of the official evidentiary record to be considered by the IURC in reaching its final decision on the utility’s requests.

  • Consumer comments, whether written or oral, are given equal consideration.

On August 22, the IURC is scheduled to hold a technical evidentiary hearing in Indianapolis. While the hearing is open to the public, 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 these cases 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.

All publicly filed documents in these cases 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 43208 or 43209 in the first field on the search page

 

General Information

Indiana Office of Utility Consumer Counselor (OUCC)

  • State agency
  • Represents the interests of all Indiana utility consumers in cases before the IURC and federal regulatory commissions
  • Staff of attorneys, accountants, engineers, economists, consumer services and support personnel
  • Provides consumers with a voice in utility policy
  • Responds to consumer questions and information needs

Indiana Utility Regulatory Commission (IURC)

  • 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

Public Field Hearing Overview

  • Formal legal proceeding conducted by the IURC
  • Presided over by an Administrative Law Judge and recorded by a court reporter
  • Conducted in utility’s service territory; often required by law
  • Consumers may make sworn written or oral comments on the utility’s proposal, its service and any other relevant issue. Comments are part of the official evidentiary record considered by the IURC in making its decision
  • Attorneys for the case’s formal parties – including the OUCC and utility – participate
  • Not a question and answer/discussion format; designed to allow consumer comment
    • IURC Commissioners are not permitted to answer questions during the formal hearing
    • OUCC and IURC staff members will be present and available to answer consumer questions before and after the field hearing
  • 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


Prepared by the OUCC
115 W. Washington St., Suite 1500 South
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