Commission Examines LDC Plan to Slash Industrial Rates

Fortnightly Magazine - February 1 1997
This full article is only accessible by current license holders. Please login to view the full content.
Don't have a license yet? Click here to sign up for Public Utilities Fortnightly, and gain access to the entire Fortnightly article database online.
Burns & McDonnell – In-depth Understanding for Undergrounding – Read the Blog

The West Virginia Public Service Commission (PSC) has criticized a request by Shenandoah Gas Co. to require its residential and commercial customers to pay the lion's share of a newly approved rate increase, citing the utility's cost studies as "flawed" and its cost allocations as having compounded the error.

The company had argued that its cost studies showed that interruptible customers were already generating a 45 percent rate of return, while rates for its firm customers produced a negative return on the investment necessary to serve them. As part of a settlement presented in the case, the company had agreed to require residential customers to pay 30.2 percent of the increase and commercial customers 53.7 percent, while firm industrial users would pay 16.06 percent. The commission accepted the proposed allocation of the rate increase noting that the settlement figures represented a reasonable and gradual realignment of costs among customer classes.

But the PSC found the studies marred by a "serious understatement" of interruptible

This full article is only accessible by current license holders. Please login to view the full content.
Don't have a license yet? Click here to sign up for Public Utilities Fortnightly, and gain access to the entire Fortnightly article database online.