MORGANTOWN — A portion of every natural gas customer’s bill goes toward the cost the provider pays to buy the gas. It fluctuates annually depending on market.
Customers of Hope Gas and Cardinal Natural Gas’ northern division could see some relief in that area through their respective 2024 Purchased Gas Application (PGA) cases making their way through the Public Service Commission. PSC staff have issued recommendations for both companies.
Hope filed its PGA case on Aug. 1 and made some adjustments in subsequent filings. 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.
Staff agreed to these Hope proposals: 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 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. Also, per routine, the PSC has set the case before an administrative law judge who will deliver an interim decision by Oct. 11 and a final decision by March 31, 2025.
Offsetting the decrease will be an increase in Hope’s Pipeline Replacement and Expansion Program (PREP) rate. A proposed settlement in that case was reached Sept. 9. Under the settlement, the residential PREP rate would rise from $2.225 per mcf to $3.174.
For our customer above, the charge for 9 mcf would rise from $20.03 to $28.57. So a new January bill, with the PGA decrease and PREP increase combined, would change from $70.73 to $59.27.
Both the PREP and PGA cases await final PSC approval.
Cardinal Natural Gas
Cardinal has two divisions, northern (Preston, Marion, Harrison and Monongalia counties) and southern (Mercer). The northern division has two territories: Lumberport-Shinnston and Blacksville.
Staff recommends an interim PGA rate of $6.461 per mcf for both northern territories.
For Blacksville, this would be a slight decrease from the current $6.465 per mcf, amounting to 0.004 cents, 0.06%.
For Lumberport-Shinnston, the decrease would be more substantial: a 33.78% decrease from $9.93 per mcf.
The rates are proposed to take effect Nov. 1. As with Hope, the PSC has set the case before an administrative law judge who will deliver an interim decision by Oct. 11 and a final decision by March 31, 2025.
The rates would be offset by hikes in other cases that are ongoing.
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