dbeard@dominionpost.com
MORGANTOWN – Hope Gas customers will see a bump in their monthly rates to pay for the company’s Pipeline Replacement and Expansion Program (PREP).
The Public Service Commission this week approved a settlement Hope reached with other interested parties in early September. The new rates will take effect Nov. 1.
Hope Gas residential customers would see their rates rise by $6.08 per month – a 6.34% increase.
Customers of other gas suppliers that Hope has acquired will also see changes.
Former People’s Gas customers would see their bills rise $6.41 per month, 6.1%; Southern Public Service Company, $4.54, 7.03%; Standard/Bazzle Gas, $5.13, 7.36%.
The hike covers two Hope programs: its General Program for its core distribution system and its Gathering Program for gathering facilities. For this year, Hope projects to spend $64,037,752 for the General Program and $2,500,000 for the Gathering Program.
For 2025, the projected General Program investment is $62,537,752 and the Gathering Program is $3 million.
Another rate case
However, the approved PREP rate hike will be offset by a rate cut in another case awaiting PSC approval: Hope’s 2024 Purchased Gas Application (PGA) case that accounts for Hope’s costs to buy the gas it distributes.
The PGA portion of the bill includes three elements – a pipeline demand charge (a flat fee for delivering gas into a customer’s building), a commodity charge based on usage measured in thousand cubic feet (mcf) and transport charge per dekatherm – a measure of heat value in a specific volume of gas.
Charges vary by type of customer, but we’ll look at average residential rates.
The pipeline demand charge would fall from $7.51 to $6.90, a 61 cent (8.12%) decrease. The commodity charge would fall from $4.69 per mcf to $2.536, a $2.154 (45.93%) decrease. The transport charge would fall from 0.975 cents per dekatherm to 0.944 cents, a 0.031 cent (3.18%) decrease.
Hope doesn’t provide an average mcf amount for residential usage, but for illustration purposes we can look at a customer using 9 mcf in January, a peak month, and 1 dekatherm. Under the current rate, the PGA portion of the bill would be $50.70. Under the proposed new rate, the portion would be $30.70.
Hope has acquired several smaller gas companies and proposes to apply uniform rates across its whole customer base. Former Peoples Gas customers would see their pipeline demand charge fall from $7.38 to $6.90 and their commodity rate fall from $6.38 per mcf to $2.536.
Former Southern Public Service Company customers had no pipeline charge and the $6.90 would be new. But their mcf charge would fall dramatically, from $7.014 to $2.536.
Former Standard Gas customers also would see the new pipeline demand charge. Their mcf charge would drop from $4.92 to $2.536.
Former Consumers Gas customers would see their pipeline charge fall from $7.51 to $6.90, and the mcf rate drop from $4.69 to $2.536.
Hope proposes to have these new rates also take effect Nov. 1. PSC staff is continuing its review of the proposal and will issue a final recommendation at a time to be determined.
