COLUMBUS, OHIO (Sept. 26, 2019) – The Public Utilities Commission of Ohio (PUCO) today approved a settlement agreement that resolves all issues related to Suburban Natural Gas Company’s application for an increase in rates.
The Commission approved an agreement that authorized a total revenue increase of $1.78 million which will be phased in over three years in order to reduce bill impacts for customers. The company initially sought an increase of $3.4 million. The settlement also established a rate of return of 7.26%.
Residential customers will experience an increase of $4.42 in their monthly bill for year one of the phase in. In response to the Tax Cuts and Jobs Act (TCJA), base rates will be adjusted to reflect the federal tax rates. The company will establish a tax credit rider in the near future to refund to customers over collected income taxes since the TCJA went into effect.
The settlement approved by the Commission was signed by Suburban and PUCO staff.
According to Ohio law, a public utility is allowed to recover its operating expenses plus a reasonable return on its infrastructure investments. The PUCO reviews the utility’s financial condition, its operating expenses and ensures that the utility is providing safe and reliable service to its customers.
On Aug. 31, 2018, Suburban filed an application to increase its rates for natural gas distribution service.
On Feb. 6, 2019, PUCO staff completed an investigation of the facts, exhibits, and matters relating to Suburban’s application and filed a report of its investigation.
On April 18, 2019, the PUCO held a public hearing in Delaware, Ohio.
On May 23, 2019, Suburban filed a stipulation, or settlement agreement, signed by the company and PUCO staff.