The Indiana Office of Utility Consumer Counselor (OUCC) is inviting public comments as it reviews the requests of Ohio Valley Gas Corporation and Ohio Valley Gas, Inc. for increases in base rates and charges.
The OUCC - the state agency representing ratepayer interests in cases before the Indiana Utility Regulatory Commission (IURC) - has not yet taken a position on the utilities' requests but is currently scheduled to complete its review and file testimony on Tuesday, July 17. Consumers who wish to provide written comments on the proposals in the meantime may submit them to the OUCC's consumer services staff via mail, e-mail or fax.
Ohio Valley Gas, Inc. (OVGI) is a subsidiary of Ohio Valley Gas Corporation (OVGC). Both are investor-owned utilities based in Winchester, Indiana that provide natural gas service to approximately 31,000 customers in 16 Indiana counties. According to filings before the IURC, Ohio Valley is seeking the increases to cover higher operating and maintenance costs.
The proposals would increase annual operating revenues for OVGC, which serves 11 counties in east central and southern Indiana (Dearborn, Dubois, Fayette, Franklin, Jay, Perry, Randolph, Ripley, Spencer, Union, and Wayne), by $5.5 million and annual revenues for OVGI, which serves 5 western Indiana counties (Greene, Knox, Pike, Sullivan, and Vigo), by approximately $697,000.
The requested increases in annual operating revenues (approximately 13.6 percent for OVGC and 9.8 percent for OVGI) would apply only to the utilities' base distribution rates. Base distribution rates typically comprise between 25 and 30 percent of a residential customer's monthly winter heating bill and cover "non-gas" costs for operating the utilities. Ohio Valley's current base distribution rates were approved in January 2003.
Wholesale natural gas commodity costs, which comprise between 70 and 75 percent of a typical residential heating bill, are recovered on a dollar-for-dollar basis through the state's Gas Cost Adjustment (GCA) process. Ohio Valley's GCA process, which requires OUCC review and IURC approval every three months, will not be affected by this case.
In addition, Ohio Valley is 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 the utilities to adjust customer distribution charges to help mitigate extreme weather fluctuations.
An IURC public field hearing in these cases is currently scheduled for Monday, July 9, at 6:00 p.m. in Winchester (at the Randolph County YMCA, 1521 E. Washington St.). An OUCC information meeting will precede the field hearing at 5:30 p.m.
Ohio Valley's testimony and exhibits in these cases 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 rate case 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 these cases no later than Thursday, July 12. Comments should include the consumer's name, address, and a reference to IURC Cause Nos. 43208/43209, 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 these cases is currently scheduled to begin on Wednesday, August 22 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 consumers in each IURC case.
The OUCC offers a number of consumer publications on utility issues, including tips for reducing energy bills and guides to understanding natural gas prices and gas cost adjustments. All OUCC publications - including a guide to the state utility regulatory process and tips for providing effective consumer comments - are available at no charge by calling the agency toll-free or visiting the agency's Website.
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 Nos. 43208, 43209)
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