The Register-Herald, Beckley, West Virginia

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October 30, 2008

Interim rate hikes for gas on hold while PSC scrutinizes proposals

CHARLESTON — The state Public Service Commission will take a little more time to review proposed interim natural gas rate increases.

An order filed Wednesday will stay the decision for proposed interim rate changes for 12 of the 16 gas companies seeking reimbursement for purchased gas costs before the PSC.

The PSC “intends to promptly issue further orders that establish interim rates based upon more recent projections of future market prices,” according to the order.

In August, the state’s natural gas companies asked the PSC for tremendous rate increases — as high as 46 percent — to recoup costs of purchased natural gas.

On Oct. 10, Melissa Marland, the PSC’s administrative law judge, recommended that 13 of the state’s gas companies receive interim rate increases. Three smaller companies were recommended for decreases.

The interim rates were scheduled to go into effect Saturday.

According to PSC rules, the administrative law judge’s recommendations automatically go into effect after 15 days if official parties do not file exceptions or reach settlements, said Byron Harris, head of the PSC’s Consumer Advocate Division.

Two of the companies, Mountaineer Gas and Equitable Gas, have had exceptions filed in their cases, he said. Another two — Hope Gas and Union Oil & Gas Co. — have reached settlements, Harris said.

Harris said Wednesday’s stay order is rare. He said recent fluctuations in natural gas prices could be a reason, as could the large number of rate adjustment requests.

Still, what will happen — whether rates will go up or down — is anyone’s guess, Harris said.

“Basically, it means rates won’t change unless they (PSC officials) make an order,” he said.

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