By KENNETH HART
FRANKFORT — Columbia Gas customers will soon see a slight increase in their monthly bills as the result of a decision Monday by the Kentucky Public Service Commission.
The PSC approved a settlement granting Columbia Gas a revenue increase of $6.125 million, which was $5.43 million less than what the utility had sought.
Under the settlement, which takes effect today, residential customers will see an increase of $2.05 per month in their customer charge, from $9.30 to $12.35. The gas delivery charge of $1.87 per 1,000 cubic feet will remain the same, the PSC said.
The rate change affects only Columbia Gas’ base rate, not the commodity cost of gas itself. The latter, which is adjusted frequently to reflect market prices, is determined separately and is passed on to customers on a dollar-for-dollar basis.
The PSC determined that the settlement produced rates that are “fair, just and reasonable” and should be approved.
The settlement was negotiated by the gas company with the other parties to the case: Kentucky Attorney General Jack Conway’s office; Lexington-Fayette Urban County Government; the Kentucky Industrial Utility Customers Inc.; AARP; Constellation NewEnergy-Gas Division LLC; Interstate Gas Supply Inc.; Stand Energy Corp.; and Community Action for Lexington-Fayette, Bourbon, Harrison and Nicholas Counties Inc.
The PSC conducted a public hearing last month on the proposed settlement.
Columbia Gas, headquartered in Lexington, serves about 138,000 customers in 33 Kentucky counties.
In originally seeking a revenue increase of $11.56 million a year, Columbia Gas proposed to increase the monthly customer charge from $9.30 to $26.53 in two years. The company also proposed making changes in the way its rates are structured, adding a program to speed replacement of aging gas mains, bolstering its energy conservation programs and instituting late-payment fees for residential customers.
The conservation, main replacement and late fees are included in the settlement. However, low-income customers who receive financial assistance to help pay their bills will be exempted from late fees.
KENNETH HART can be reached at khart@dailyindependent.com or (606) 326-2654.
