Boonville Natural Gas Rates
Key components in Boonville Natural Gas Corporation's bills include gas costs and base rates.
To compare average gas utility bills, see the IURC's monthly residential surveys.
Natural gas utilities buy gas for their customers in a competitive wholesale market. Indiana law allows utilities to adjust rates periodically to recover changes in those costs, which can go up or down. These costs comprise a significant portion of a residential bill and are recovered through the Gas Cost Adjustment (GCA) process.
- Utilities may recover wholesale gas costs on a dollar-for-dollar basis but may not profit on them.
- Before adjusting rates to reflect the costs, a utility must demonstrate that it has shopped prudently in the competitive market.
- Each GCA filing requires OUCC review and IURC approval.
Boonville Natural Gas Corporation files gas cost adjustment requests every six months. Its most recent GCA (IURC Cause No. 37369 GCA-129) received approval in April 2023.
Base rates cover "non-gas" costs for a utility, including operational, maintenance, and capital costs. A natural gas utility is allowed to earn a return on this portion of the bill.
Boonville Natural Gas Corporation's current base rates were set in October 2019. In its rate case order, the IURC approved a settlement agreement between the OUCC and the utility. It reduced the utility's requested increase from 14.2 percent to 11.4 percent.