The Indiana Office of Utility Consumer Counselor (OUCC) is inviting public comments as it reviews Midwest Natural Gas Corporation's request for an increase in its base rates and charges.
The OUCC - the state agency representing residential and business ratepayer 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 Friday, September 7. Customers who wish to provide written comments on the proposal in the meantime may submit them to the OUCC's consumer services staff via mail, e-mail or fax.
Midwest Natural Gas Corp. - an investor-owned entity based in Washington, Indiana - is requesting an 8.9 percent increase in its base rate revenues, which would generate an additional $2.04 million in annual operating income. Under the utility's proposal, Midwest's tariffs and new rates would also apply to customers of its subsidiary, Peoples Gas and Power Company, Inc., with the case completing the operational merger of the two utilities. The IURC approved an operational merger as well as current base rates for Midwest and Peoples in February 2003. Midwest is also seeking IURC permission to issue up to $480,000 in long term debt in this case.
Midwest and Peoples serve approximately 15,000 customers in 11 southern Indiana counties (Clark, Daviess, Greene, Jackson, Jennings, Knox, Monroe, Orange, Scott, Sullivan, and Washington). According to its testimony and exhibits, the utility is seeking the changes due to increases in operating and maintenance costs, along with the losses of several large industrial and commercial customers.
The proposed rate increase in this case would only apply to the utility's base distribution rate, which comprises approximately 25 to 30 percent of a typical residential natural gas customer's monthly heating bill. Base distribution rates cover "non-gas" costs such as operating and maintenance costs, and capital improvements.
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. Midwest's GCA process, which requires OUCC review and IURC approval every three months, will not be affected by this case.
A copy of Midwest's testimony and exhibits is available online and can be viewed on the OUCC Website.
"Written consumer comments are important to us as we review utility requests in rate cases," said Indiana Utility Consumer Counselor Susan L. Macey. "While our legal and technical case teams closely examine utility testimony and exhibits in each proceeding before the IURC, consumer comments frequently help us to understand issues at the local level."
The OUCC needs to receive all written consumer comments in this case no later than Tuesday, September 4. Comments should include the consumer's name, address, and a reference to IURC Cause No. 43229, and can be submitted by mail, fax or the Internet:
Consumers with questions about submitting written comments can contact the OUCC's consumer services staff toll-free at 1-888-441-2494. Comments received by the OUCC's filing deadline will be reviewed by the agency's consumer services staff, as well as legal and technical staff assigned to the cases.
An IURC technical evidentiary hearing in this case is currently scheduled to begin on Tuesday, October 2 in Indianapolis. While technical evidentiary hearings are open to the public, participation is typically limited to attorney and Commission questioning of technical witnesses that have filed testimony on behalf of the proceeding's formal parties. All hearing and filing dates are subject to change.
A settlement agreement is possible in any legal proceeding; such an agreement would require IURC approval. The OUCC attempts to reach a fair agreement for ratepayers in each IURC case.
"My staff and I want all ratepayers to be well-informed about their utility services and ways to use them most efficiently," continued Macey. "Our Website offers helpful tips for reducing energy bills, a guide to understanding natural gas prices, tips for providing effective comments in pending cases, and much more. Consumers without Internet access are welcome to call us toll-free to receive copies of our publications by mail at no charge."
The Indiana Office of Utility Consumer Counselor (OUCC) is the state agency that represents utility consumer interests in state and federal regulatory proceedings. To learn more, visit www.IN.gov/OUCC.
(IURC Cause No. 43229)
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