Pick Your Community: | Hopkins | Muhlenberg | Daviess | Christian | Henderson | Lakes | McCracken | Webster
Davis Motor Sales banner ad

PSC Grants Rate Increase to Atmos Energy

PSC KYFRANKFORT, Ky. (4/23/14) — The Kentucky Public Service Commission has granted Atmos Energy Corp. an annual revenue increase of $8.55 million (5.5 percent), which is $4.817 million less than the amount sought by the utility.

For a typical residential customer using an average of 5,000 cubic feet per month, the base rate portion of the bill will increase by $1.99 per month, or $23.88 per year. The monthly customer charge will increase to $16.

The current monthly customer charge is $12.50, plus a $2.61 monthly surcharge that pays for speedier replacement of aging gas mains. The surcharge resets to zero with this rate adjustment. The gas delivery charge will rise from the current $1.10 per 1,000 cubic feet to $1.32 per 1,000 cubic feet.

In an order issued today, the PSC stated that the adjusted rates will be “fair, just and reasonable.”

Today’s order applies only to Atmos Energy’s base rate, which covers the utility’s cost of operating and maintaining its system, as well as any profit margin. The commodity cost of the gas itself, which is adjusted quarterly to reflect market prices, is determined separately and is passed through to consumers on a dollar-for-dollar basis by Atmos Energy, with no additional profit for the utility.

Atmos Energy originally sought to increase its annual revenue from gas operations by $13.367 million (8.6 percent). The company proposed to increase the monthly customer charge to $16 from the current $15.11 - the $12.50 customer charge plus the $2.61 surcharge.

Atmos Energy proposed to increase the gas delivery charge to $1.63 per 1,000 cubic feet. The increase sought by Atmos Energy would have increased the typical residential bill by $3.54 per month, or $42.48 per year.

Atmos Energy serves about 173,000 customers in 38 counties in western and central Kentucky.

As permitted by Kentucky law, Atmos Energy put its proposed rates into effect Jan. 24. As a result of today’s PSC decision to set lower rates, the company will have to refund the amount it has over-collected since that date, plus interest, to its customers.

The principal adjustment made by the PSC to the rates requested by Atmos Energy was a reduction in the company’s proposed return on equity, which represents the opportunity to earn a profit. The reduced rate of return will still permit the company to borrow money at reasonable rates, maintain service levels and financial integrity and invest for the future, all at “the lowest possible cost to ratepayers,” the PSC said.

The PSC denied a request by Atmos Energy to charge $10 for placing door tags warning customers who are facing disconnection due to unpaid bills. Atmos Energy did not provide evidence that such warnings would be effective in reducing disconnections or supply data justifying the cost, the PSC said.

A hearing in the case was held Jan. 23. Other parties to the case included the Kentucky Office of Attorney General and Stand Energy Corp., a natural gas marketer.

Today’s order, Atmos Energy’s application and other documents in the case are available on the PSC website, psc.ky.gov. The case number is 2013-00148.

The PSC is an independent agency attached for administrative purposes to the Energy and Environment Cabinet. It regulates more than 1,500 gas, water, sewer, electric and telecommunication utilities operating in Kentucky and has approximately 85 employees.

SurfKY News
Information provided by Andrew Melnykovych

© Copyright 2014 SurfKY News Group, Inc. All rights reserved. This material may not be published, broadcast, or rewritten without permission. SurfKY News encourages you to share this story by using one of the social media links below.

Posted on 2/2/14
2/6/2014 - posted

Stock Report

button coupons
1 DOW 18,053.71
+23.50 (0.13%)    
2 S&P 2,088.77
+6.89 (0.33%)    
3 NASDAQ 4,806.86
+33.39 (0.70%)    
2/6/2014 - posted
2/6/2014 - posted
button classifieds

In Other News...

Bowling Green Edges Daviess County, Captures OIT Title

OWENSBORO, Ky. (12/26/14) — Daviess County couldn't make an early fourth quarter eight-point lead stick as Bowling… Read More

Christmas Eve Bloody Brawl Erupts on Dulin Street

MADISONVILLE, Ky. (12/24/14) ― The Madisonville Police Department is investigating a fight involving gunfire and a… Read More
2/6/2014 - posted

Most Read This Week

December 24, 2014 12292

Christmas Eve Bloody Brawl Erupts on Dulin Street

in Local (Hopkins) Top News by Doreen Dennis
December 25, 2014 8289

Gift Returns Done Right

in General News For All Sites by SurfKY News
December 25, 2014 5670

Arrests Made After Dulin Avenue Christmas Eve…

in Local (Hopkins) Top News by Officer C.P. Haynie
December 19, 2014 4024

Vehicle Fire Causes Traffic Back-Up on Pennyrile

in Local (Hopkins) Top News by Doreen Dennis
December 23, 2014 4013

Couple's Alleged Dispute over Blanket Leads to…

in Local (Hopkins) Top News by Madisonville Police Department
December 25, 2014 3889

Crime Stoppers Top Most Wanted - December 25, 2014

in Video by Crime Stoppers
December 22, 2014 3553

Madisonville Police Arrest Reports - Dec. 22, 2014

in Hopkins News by Madisonville Police Department
December 23, 2014 3491

Alleged Theft at Walmart Sends Two to Jail

in Local (Hopkins) Top News by Madisonville Police Department
December 20, 2014 3387

KET’s Kentucky Life Segment to Feature Old…

in Local (Muhlenberg) Top News by Paul McRee, SurfKY News
December 23, 2014 3096

Disturbance Results in Vehicle, Foot Pursuit,…

in Local (Hopkins) Top News by Officer Tyler Russell

Stories Trending Today

December 24, 2014 12292

Christmas Eve Bloody Brawl Erupts on Dulin Street

in Local (Hopkins) Top News by Doreen Dennis
December 25, 2014 8289

Gift Returns Done Right

in General News For All Sites by SurfKY News
December 25, 2014 5670

Arrests Made After Dulin Avenue Christmas Eve…

in Local (Hopkins) Top News by Officer C.P. Haynie
December 25, 2014 3889

Crime Stoppers Top Most Wanted - December 25, 2014

in Video by Crime Stoppers
December 26, 2014 2231

5-Year-Old Boy Kills Buck/Doe

in Local (Muhlenberg) Top News by Randy Adams
December 24, 2014 1517

Winter Superfoods for Optimal Health

in General News For All Sites by SurfKY News
December 26, 2014 1439

Grab the Best Buys This January

in General News For All Sites by SurfKY News
December 25, 2014 1426

How to Create Your Household Budget

in General News For All Sites by SurfKY News
December 24, 2014 1418

Jobless Rates down in 119 Counties in November…

in General News For All Sites by Kim Brannock
December 25, 2014 1328

SurfKY Spotlight: Hudson Service Center

in Video by Gary Gates, SurfKY News

SurfKY News Group, Inc.
Corporate Office & Studio
1125 Nebo Rd.  •  Madisonville, KY 42431
270.452.2727 (phone)
  •  270.452.2249 (fax)


Contact a member of our staff: www.surfky.com/contact
Copyright © 2014 SurfKY News Group, Inc.  •  Terms of Use  •  Site Map

social fbsocial twsocial yt
social gpsocial flrsocial rss