Dominion East Ohio Rate Increase Includes Customer
Benefits
$37.5 million increase approved by PUCO first
base-rate change in 14 years
Automated monthly meter reading, expanded conservation
programs included
Dominion assumes responsibility for customer
service lines between street and meter
Company invests $1.2 million in local community organizations
CLEVELAND - Dominion East Ohio today received approval from
the Public Utilities Commission of Ohio (PUCO) for an annual revenue increase
of $37.5 million, its first base rate increase in 14 years. Typical residential
monthly bills would increase less than $3, or 2.5 percent, effective October
16, 2008.
The PUCO also approved a number of consumer benefits as part
of the rate case, including automated meter reading, expanded energy conservation
programs and the beginning of a program to replace older pipelines. In addition,
the company would assume responsibility for repairs and installation of customer-owned
service lines, which are the lines that run from the street curb to the customer's
meter.
"The increased revenue and the new programs will help
Dominion East Ohio continue to maintain a modern natural gas distribution system,
with one of the best Choice programs in the country, accurate and timely metering,
quality customer service, and safe, reliable delivery of natural gas,"
said Bruce C. Klink, president of Dominion East Ohio. "We are also proud
to include expanded energy conservation and community assistance programs."
Many terms of the base rate case were the result of a settlement
Dominion East Ohio reached with the PUCO Staff, Ohio Consumers’ Counsel;
and other consumer advocates. The settlement came after extensive PUCO staff
review, public hearings and testimony.
In its ruling today, the PUCO decided to increase Dominion
East Ohio monthly service charge from the current $5.70 to $12.50 and reduce
the base rate to less than $0.628 per thousand cubic feet (mcf) from the current
$1.2355 per mcf. In 2009, the monthly service charge would increase to $15.40
while the base rate would fall to $0.358/mcf.
Other key elements in the settlement include:
Recovery of costs associated with system-wide automated
meter reading deployment. The installation of automated metering will benefit
customers by providing actual meter readings each month, thus eliminating
estimated bills, and improving budget billing calculations.
Five-year authorization for the proposed Pipeline Infrastructure
Replacement program cost recovery. The initial maximum charge to residential
customers will be $1.12 per month, beginning in November 2009, with subsequent
increases not to exceed $1.00 per year. Customers will benefit directly from
this program, because Dominion East Ohio will assume the responsibility for
repairs and installation of the service lines that run from the curb to the
customer’s meter, effective immediately. Customers currently own those
service lines and are responsible for all repair and replacement costs.
A $6.0 million increase in annual spending for energy conservation
programs for a total $9.5 million annually. Of that total, $6.5 million is
targeted toward low-income customers.
The settlement includes provisions aimed to assist low-income
customers. Dominion East Ohio will make grants totaling $1.2 million to several
organizations that help customers in the areas of payment assistance and education
regarding the efficient use of natural gas. Two of those organizations are
the Consumer Protection Association and the Empowerment Center of Greater
Cleveland. In addition, the company will also increase funding to its EnergyShare
Program, which provides last-resort assistance to customers who have exhausted
all other forms of energy assistance.
Dominion is one of the nation's largest producers and transporters
of energy, with a portfolio of approximately 27,000 megawatts of generation,
1.1 trillion cubic feet equivalent of proved natural gas reserves, 14,000 miles
of natural gas transmission, gathering and storage pipeline and 6,000 miles
of electric transmission lines. Dominion operates the nation’s largest
natural gas storage facility with 975 billion cubic feet of storage capacity
and serves retail energy customers in 12 states. For more information about
Dominion, visit the company's Web site at http://www.dom.com.
