PUCO, Columbia Gas officials have public hearing on rate rise

By SEAN BARRON

VINDICATOR CORRESPONDENT

SALEM — Representatives from the Public Utilities Commission of Ohio and Columbia Gas of Ohio had the first of several public hearings to give customers an opportunity to voice their opinions regarding an agreement between the company and PUCO allowing for an increased rate to distribute natural gas.

Officials with both entities had the 30-minute session Tuesday at the Kent State University Salem campus to outline details of the settlement reached Friday between Columbia, PUCO, the Ohio Consumers’ Counsel and several other state entities.

The agreement will allow the company to increase rates for natural gas distribution that Columbia officials hope will generate $47.1 million of additional revenue for the company.

Before the compromise, Columbia had sought a revenue increase request of $87.2 million.

The settlement, which would mean an increase of about $30 a year for the average customer, still needs the approval of the five-member PUCO Board of Commissioners. It would be the first delivery charge increase in 14 years, noted David Rau, Columbia’s community relations manager.

Natural-gas costs make up between 75 percent and 80 percent of a customer’s bill; the rest reflects the cost of delivering the gas to homes or businesses.

The cost of natural gas is not part of the rate case, Columbia officials point out.

If the stipulation is approved, the company would establish a new conservation program; provide $1.85 million over five years to help low-income consumers with winter heating bills; and set aside $1.15 million over four years to form a pilot program to assist an estimated 6,000 low-income customers who fail to qualify for the Percentage of Income Payment plan, Rau noted.

Similarly, it would provide around $3 million worth of company shareholder dollars for heating assistance for low-income people over the next five years, Rau explained.

Other benefits include the installation of automated meter devices for residential and small-business customers, he said.

The devices would let meter readers come at any time and eliminate calculated bills, which are frustrating for many people, Rau added.

The settlement also would allow for a flat distribution fee for all consumers, which would more accurately reflect what people use, he said, adding that low-income people use about 28 percent more gas than the average customer.

The additional revenue is needed largely to fund a variety of long-term local and statewide infrastructure projects, including a proposed $1.3 million to replace gas mains and service lines in two sections of Salem next year, Rau said.

The company plans to spend roughly $2 billion over 25 years on infrastructure work.

That includes replacing portions of about 20,000 miles of pipelines throughout the state, noted Jack Partridge, Columbia’s president.

Columbia serves an estimated 1.4 million customers in 60 of Ohio’s 88 counties, making it the state’s largest natural-gas distributor.

As part of the agreement, the Ohio Consumers’ Counsel negotiated last July with Columbia to provide four energy-efficiency programs for consumers, noted Christopher F. Verich, OCC’s residential utility consumer advocate.