Printer Friendly

MINNEGASCO REQUESTS 3.6 PERCENT RATE INCREASE

 MINNEAPOLIS, Nov. 5 /PRNewswire/ -- Minnegasco today filed a rate increase request with the Minnesota Public Utilities Commission (MPUC) that would raise overall revenues by $22.7 million or 3.6 percent; adding about $3 to most residential heating customers' monthly bills. A final decision is expected in September 1994.
 Minnegasco asked the MPUC to permit it to place interim (temporary) rates into effect on Jan. 4, 1994, until the final decision in September, that would raise overall revenues by $16.9 million or 2.7 percent, adding about $2 to most residential heating customers' monthly bills.
 The company is making the filing to recover increased costs of providing natural gas service. The reliability and safety of the distribution system is continuously being improved through the replacement of older facilities, as well as through expansion and upgrading of other physical plant and equipment in new areas.
 Higher property taxes and federal income taxes have also increased the company's costs. Employee medical benefit costs continue to rise at a rate faster than the overall level of inflation.
 Minnegasco is spending significant dollars in the environmental area to comply with state and federal mandates to clean up old manufactured gas plant sites. In addition, Minnegasco has proposed to increase its spending on energy conservation programs for customers by nearly $3 million annually to assist them in reducing their energy consumption and thereby lowering energy bills.
 Another important factor in this filing is the integration of the newly acquired Midwest Gas operations in the north metro and Greater Minnesota area with Minnegasco's existing operations. This filing proposes to integrate the rates and services offered by Minnegasco to all customers in the combined systems. "Customers on both systems will benefit from the combined operations once the MPUC makes a final decision on this filing," said Phillip Hammond, vice president of gas supply and regulatory administration.
 Minnegasco customers will benefit from the company's larger operations in Minnesota through opportunities for new efficiencies. "The faster growth in new customers in north suburban areas will also help to keep our prices at a lower level, as the costs of delivering natural gas will be spread over a much larger base of customers in the coming years," added Hammond.
 Most former Midwest system customers also benefit from the combined operations due to overall lower costs of gas purchased by Minnegasco for its Minnesota customers. "For the majority of former Midwest customers, Minnegasco's lower costs of purchasing natural gas will offset the other cost increases, which are the subject of this filing," explained Hammond.
 Interim rates will be collected, subject to a refund with interest, until the MPUC's final ruling on Minnegasco's rate request. Hammond also reminds consumers, "Bills in the coming winter months will be higher than their fall bills due to seasonal increases in purchased gas costs and increased heating usage."
 Minnegasco, a division of Arkla, Inc., is Minnesota's largest natural gas utility, serving approximately 590,000 residential, commercial and industrial customers in 200 communities.
 MINNEGASCO 1993 RATE FILING
 ATTACHMENT I
 Minnegasco customers prior to the acquisition of Midwest Gas: The chart below shows the effect of both the proposed interim and final rate changes on monthly bills for customers with average usage. The monthly customer charge is included.
 Rate Class Avg. Monthly Avg. Monthly Proposed Proposed
 (Usage shown usage in bill: current interim final
 in Therms) Therms rates rates rates
 Residential 103 $55.86 $57.20 $59.11
 Commercial/
 Industrial
 - up to 1,500/yr 61 38.12 39.03 38.81
 - 1,500-5,000/yr 233 140.90 144.28 128.50
 - 5,000 or more/yr 1,469 729.50 747.01 750.90
 Small Volume Dual Fuel
 - up to 120,000/yr 3,491 1,150.62 1,178.23 1,214.31
 - 120,000 or more/yr 18,363 5,733.58 5,871.19 6,108.38
 Large Volume Firm 25,000 12,539.50 12,840.45 11,961.43
 Large Volume
 Dual Fuel 100,000 29,304.00 30,007.30 29,810.00
 Monthly customer charge: The chart below shows how the monthly customer charge is proposed to change. Monthly customer charges cover a portion of the fixed costs of providing service to customers.
 Rate Class Current Customer Proposed Customer
 (usage in Therms) Charge Charge
 Residential $5 $6
 Commercial/
 Industrial
 - up to 1,500/yr 9 9
 - 1,500-5,000/yr 30 15
 - 5,000 or more/yr 30 35
 Small Volume Dual Fuel
 Sales Service
 - up to 120,000/yr 75 50
 - 120,000 or more/yr 75 75
 Transportation
 - up to 120,000/yr 175 150
 - 120,000 or more/yr 175 175
 Large Volume Dual Fuel
 - Sales Service 200 200
 - Transportation 300 300
 Large Volume Firm 100 100
 MINNEGASCO 1993 RATE FILING
 ATTACHMENT II
 Former Midwest Gas customers served by Northern Natural Pipeline: The charge below shows the effect of both the proposed interim and final rate changes on monthly bills for customers with average usage. The monthly customer charge is included.
 Rate Class Avg. Monthly Avg. Monthly Proposed Proposed
 (Usage shown usage in bill: current interim final
 in Therms) Therms rates rates rates
 Residential 87 $50.58 $53.11 $50.47
 Commercial/
 Industrial
 - up to 1,500/yr 51 31.67 33.25 34.06
 - 1,500-5,000/yr 215 119.83 125.82 119.94
 - 5,000 or more/yr 1,010 547.36 574.73 527.27
 Small Volume Dual Fuel
 (interruptible)
 - up to 120,000/yr 3,807 1,366.39 1,434.71 1,319.77
 - 120,000 or more/yr 16,316 5,757.70 6,045.59 5,435.59
 Large Volume Dual Fuel
 (interruptible) 100,000 28,862.00 30,305.10 29,810.00
 Monthly customer charge: The chart below shows how the monthly customer charge is proposed to change. Monthly customer charges cover a portion of the fixed costs of providing service to customers.
 Rate Class Current Customer Proposed Customer
 (usage in Therms) Charge Charge
 Residential $4 $6
 Commercial/Industrial
 (general services)
 - up to 1,500/yr 4 9
 - 1,500-5,000/yr 4 15
 - 5,000 or more/yr 4 35
 Small Volume Dual Fuel
 (interruptible)
 Sales service
 - up to 120,000/yr 30 50
 - 120,000 or more/yr 30 75
 Large Volume Dual Fuel
 (interruptible)
 - Sales Service 125 200
 - Transportation 200 300
 -0- 11/5/93
 /CONTACT: Patty Pederson, manager, public & community relations, 612-342-4609; or Don Follett, manager, public affairs communications, 612-342-4783, both of Minnegasco/


CO: Minnegasco ST: Minnesota IN: UTL SU:

DS-DB -- MN009 -- 1399 11/05/93 17:16 EST
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Nov 5, 1993
Words:1098
Previous Article:LOCAL BUSINESS PERSON ALLEGES IMPROPRIETIES INCLUDING FRAUD AND RACE DISCRIMINATION AGAINST TREASURE ISLAND
Next Article:FIREFIGHTERS AND DISPLACED FAMILIES ASSISTED BY RADISSON HOTEL AGOURA HILLS
Topics:

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters