(Southeastern, IN) – South Eastern Indiana Natural Gas Company is asking for a rate increase that would impact customers in Ripley and Dearborn counties.
The company says the proposed rate hike is due to higher operating and maintenance costs, and to pay for infrastructure improvements including new meters, main replacements, automated pressure monitoring, improved mapping, and additional improvements.
Its proposal would raise monthly residential bills as follows:
Monthly Usage Current Gas Bill Proposed Gas Bill
50 therms $53.43 $68.81
70 therms $66.26 $84.79
100 therms $85.23 $108.38
Each residential gas bill includes a monthly $13.13 customer service charge which does not vary based on usage. It would rise to $18.00 under the utility’s request. The remainder of the bill varies by customer usage.
Base distribution rates comprise approximately 34% of a typical residential Indiana Utilities Corp. customer’s bill. They cover “non gas” costs such as operating and maintenance expense and capital infrastructure improvements. The remaining 66% of a typical monthly bill pays for the natural gas itself, which the utility recovers on a dollar-for-dollar basis subject to OUCC review and IURC approval every three months.
South Eastern Indiana Natural Gas Co. has filed this case through the IURC’s Small Utility Filing Procedure, which is designed to reduce the time and expense involved with regulatory filings for utilities with fewer than 8,000 customers. Savings are typically gained by allowing utility staff to use standardized forms and forego a technical evidentiary hearing. This is designed to result in
utilities needing less assistance from rate consultants or attorneys, leading to fewer expenses to be passed on to customers.
The OUCC uses the same standard to review a utility’s operations and records whether it seeks a rate increase through the Small Utility Filing Procedure or a traditional case. Conducting its analysis on behalf of all utility consumers, the OUCC will present the results of its review through a report to the IURC, including formal testimony. The IURC’s review is conducted on behalf of the public interest (a balancing of utility and customer interests); it is responsible for resolving any factual disputes that may arise and issuing a final order establishing new rates.
A settlement agreement is possible in any legal proceeding; such an agreement, if reached, would require IURC approval. Consumers who wish to submit written comments for the case record may do so via the OUCC’s website at www.in.gov/oucc/2361.htm, by email at [email protected], or by mail at:
Public Comments
Indiana Office of Utility Consumer Counselor (OUCC)
115 W. Washington St., Suite 1500 SOUTH
Indianapolis, IN 46204
The OUCC needs to receive all written consumer comments no later than Aug. 8, 2023, so that it can: 1) Consider them in preparing its report and 2) File them with the Commission to be included in the case’s formal evidentiary record. Comments should include the consumer’s name, city, zip code, and a reference to either “IURC Cause No. 46074-U” or South Eastern Indiana Natural Gas Co. Consumers with questions about submitting written comments can contact the OUCC’s consumer services staff toll-free at 1-888-441-2494.
The OUCC is posting case updates online at www.in.gov/oucc/natural-gas/key-cases-by-utility/south-eastern-indiananatural-gas-rates/. Case updates are also available through the agency’s monthly electronic newsletter. Consumers can subscribe at www.in.gov/oucc/news/.
