Two public events will take place on Monday, July 9 regarding the requests of Ohio Valley Gas Corporation and Ohio Valley Gas, Inc. for base rate increases. Both events will be held at the Randolph County YMCA, 1521 E. Washington St. in Winchester, Indiana:
- From 5:30 p.m. until 6:00 p.m., local time, the Indiana Office of Utility Consumer Counselor (OUCC) will conduct a public information meeting. During the half-hour meeting, OUCC staff will discuss the regulatory process and describe public field hearing procedures.
- At 6:00 p.m., local time - immediately following the OUCC information meeting - the Indiana Utility Regulatory Commission (IURC) will conduct a formal public field hearing to accept oral and written consumer comments. The comments will become part of the evidentiary record considered by the IURC in reaching its final decision in these cases. Commissioners are not permitted to answer consumer questions during the formal field hearing.
Ohio Valley Gas Corporation (OVGC), which serves customers in 11 east-central and southern Indiana counties, and Ohio Valley Gas, Inc. (OVGI), which serves 5 counties in west-central and southwestern Indiana, are investor-owned utilities - based in Winchester - that provide natural gas service to approximately 31,000 customers. According to testimony and exhibits filed with the IURC, Ohio Valley is seeking the increases to cover higher operating and maintenance costs.
The utilities' requested annual revenue increases in these cases (approximately $5.5 million for OVGC and approximately $697,000 for OVGI) would apply only to the utilities' base distribution rates. A natural gas utility's base distribution rate makes up approximately 25 to 30 percent of a typical winter heating bill and covers infrastructure costs, operating and maintenance expenses, and other "non-gas" costs. The current base rates for both Ohio Valley utilities were approved in January 2003.
This case will not affect the utilities' gas supply costs, which typically comprise 70 to 75 percent of an average residential customer's monthly heating bill. Supply costs will continue to fluctuate, based on costs in the competitive national wholesale market. Ohio Valley and other natural gas utilities throughout Indiana are allowed to recover gas supply costs on a dollar-for-dollar basis through the state's gas cost adjustment (GCA) process. GCA filings - made every three months - are subject to OUCC review and IURC approval.
The OUCC - which represents residential and business ratepayer interests in IURC cases - has not yet taken a position on Ohio Valley's requests but has until Tuesday, July 17 to complete its review and file testimony in these cases.
Ohio Valley customers who are unable to attend the July 9 events are encouraged to submit written comments to the OUCC in advance. Comments should include the consumer's name, address, and a reference to IURC Cause Nos. 43208/43209, and can be sent to the OUCC 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.
Additional information on these cases, including Ohio Valley's testimony and a comparison chart showing average bill impact by service territory under the utilities' proposals, can be found on the OUCC Website.
In addition, the OUCC offers a number of free consumer publications on utility issues - including a guide to understanding natural gas prices, tips for saving money on energy and water bills, an overview of the regulatory process, and advice for speaking out effectively on pending cases. All OUCC publications are available online at www.IN.gov/OUCC/publications/index.html or by calling the agency toll-free.
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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