Customers of Mountaineer Gas Company can plan to cope with higher bills beginning December 1. The West Virginia Public Service Commission (PSC) approved an interim rate increase which will result in an immediate 15% increase.
In a news release issued Monday, November 28, the PSC stated that Mountaineer had requested to pass on a projected increase in purchased gas cost (PGC) which would have resulted in an overall 38% increase for residential customers. Mountaineer’s projected cost was based upon futures trading on the New York Stock Exchange. If cost projections prove to be accurate, Mountaineer customers can expect an additional rate increase next spring.
The release stated that the requested 38% increase would have average users (13 Mcf per month) paying $197.93 winter bills. Last year’s average winter bill was $143.59. This winter, under the PSC approved interim rate, 13 Mcf usage will cost customers $165.59.
The Commission will continue to review the price of natural gas and the impact of the interim rate and make adjustments before setting final rates. Natural gas utilities are required to file PGC cases annually to reflect changes in the purchased gas component of their rates. The prices that natural gas utilities pay their suppliers for gas are not regulated by the PSC or by the federal government. They are solely determined by the market. The PSC does examine the gas purchasing practices of gas utilities, reviews the reasonableness of requested increases to ensure that utilities do everything possible to obtain a reliable gas supply at the lowest possible market price. The PGC does not include any profit for the company.
The rates ordered today are interim rates. The Commission will continue to review the price of natural gas and the impact of these interim rates and make further adjustments, if necessary, before setting final rates. These rates will be subject to a true-up in future 30C cases. Natural gas utilities are required to file PGC cases annually to reflect changes in the purchased gas component of their rates. The prices that natural gas utilities pay their suppliers for gas are not regulated by the Commission or the federal government, but are determined by the market. The Commission does examine the gas purchasing practices of gas utilities, reviews the reasonableness of requested increases and ensures the utility did everything possible to obtain a reliable gas supply at the lowest possible market price. The PGC does not include any profit for the company.
The PSC also approved an interim purchased gas cost for Hope Gas which will see their customer bills increase by 28%. Mountaineer and Hope are the two largest natural gas utility companies in West Virginia. Together, the companies serve almost 89% of all natural gas customers in the state.
Additional information, including documents filed Mountaineer may be found on the Commission’s website: www.psc.state.wv.us by referencing Case Nos. 22-0702-G-30C.
