For immediate release: Oct 26, 2010
Posted by: [OUCC]
Contact: Anthony Swinger
Phone: 1-888-441-2494

Kokomo Gas rate case: Consumer comments invited

Kokomo Gas rate case: Consumer comments invited

IURC field hearing scheduled for November 3 in Kokomo
OUCC accepting written consumer comments through January 11

Kokomo Gas & Fuel Co. customers are encouraged to comment on the utility's pending request for changes to its natural gas base rates and rate structure.

The Indiana Office of Utility Consumer Counselor (OUCC) - the state agency representing consumer interests in all cases before the Indiana Utility Regulatory Commission (IURC) - is accepting written consumer comments for the case record through January 11, 2011.

The OUCC also encourages consumers to attend the IURC public field hearing scheduled for Wednesday, November 3, 2010 at Central Middle School in Kokomo (303 N. Superior St.). The field hearing will begin at 6:00 p.m.

An OUCC informational meeting on the regulatory process and public field hearing procedures will be held at 5:30 p.m., immediately preceding the field hearing.

Consumers who wish to submit written comments in this case may send them to the OUCC by mail, fax or e-mail, or through the OUCC's Website:

All written comments should include the consumer's name, mailing address, and a reference to IURC Cause No. 43942. The OUCC will file all written comments it receives by the close of business on January 11, 2011 with the IURC for inclusion in the case's official record.

The OUCC is reviewing the Kokomo Gas rate request and is scheduled to file testimony on January 18, 2011.

The proposed increase in this case would apply to the Kokomo Gas base distribution rates, which comprise approximately 25 to 30 percent of a typical residential natural gas customer's monthly heating bill. Base distribution rates cover "non-gas" expenses such as capital improvements and the costs of operations and maintenance.

Residential base distribution rates for Kokomo Gas, which received IURC approval in 1987, include a fixed, monthly charge of $12.50 which would remain unchanged under the utility's pending proposal, along with volumetric charges that vary monthly based on usage. In its testimony, Kokomo Gas estimates that a residential customer's monthly bills would increase by an average of $5.90 per month, assuming that the customer uses 822 therms over a one-year period.

According to its case-in-chief, Kokomo Gas is seeking an overall annual revenue increase of approximately $1.59 million.

Wholesale natural gas supply costs, which make up between 70 and 75 percent of a typical customer's bill, are recovered on a dollar-for-dollar basis through the state's Gas Cost Adjustment (GCA) process. Kokomo Gas files its GCA requests, which require OUCC review and IURC approval, every three months. The GCA process will not be affected by this case.

In a separate proceeding, the IURC is considering the proposed merger of Kokomo Gas and Northern Indiana Fuel & Light Co. (NIF&L) into Northern Indiana Public Service Co. (NIPSCO). All three utilities are wholly owned subsidiaries of NiSource, Inc., based in Merrillville, Ind. The OUCC's testimony in the merger case (IURC Cause No. 43941) is currently due on December 16, 2010.

For more information on these cases, including links to testimony and exhibits, please visit the OUCC Website at www.in.gov/oucc/2632.htm. The OUCC Website also offers a guide to state utility regulatory proceedings, tips for reducing energy bills, a guide to understanding natural gas prices, and more.

Kokomo Gas provides natural gas utility service to more than 33,000 residential, commercial and industrial customers in six counties.

 

(IURC Cause No. 43942)

The Indiana Office of Utility Consumer Counselor (OUCC) represents Indiana consumer interests before state and federal bodies that regulate utilities. As a state agency, the OUCC's mission is to represent all Indiana consumers to ensure quality, reliable utility services at the most reasonable prices possible through dedicated advocacy, consumer education, and creative problem solving. To learn more, visit www.IN.gov/OUCC.

 

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