Utilities seek approval to raise their gas rates

Companies say recent wholesale prices were much higher than expected.
COLUMBUS (AP) -- Heating bills could increase by 13 percent for many Ohioans this winter if state regulators approve rate increases next week for two of the state's largest natural gas suppliers.
Both Dominion East Ohio Gas Co. and Columbia Gas of Ohio asked the Public Utilities Commission of Ohio on Friday to approve midquarter rate increases for December and January on an emergency basis because of increased wholesale prices.
The commission already had approved rates for November through January at $8.79 for each 1,000 cubic feet of gas for both utilities. The requested rates are $9.98 for Dominion and $9.94 for Columbia.
The average Dominion customer bill would be $255.66 monthly, $45.38 more than last winter, the company said. The latest request follows a 44-cent increase from the previous three months.
No profit
State law doesn't allow utilities to make a profit on gas they buy wholesale and distribute to customers, but they aren't expected to take losses.
"This is not something that will be rubber-stamped," PUCO spokeswoman Shana Eiselstein said.
The companies say wholesale prices were much higher than expected over the past six weeks, even though they declined last week.
Columbia would have to recover the money next winter if the rate isn't approved this year, spokesman Ray Frank said. Dominion spokesman Bruce Klink said wholesale prices would have to drop to less than $6 per 1,000 cubic feet for the utilities to file for a rate reduction.
Columbia serves about 1.3 million homes and businesses in 64 of Ohio's 88 counties. Dominion has about 1.2 million customers in northeast and western Ohio.