CHARLESTON, W.Va. — Twelve natural gas companies providing service in West Virginia are seeking an increase in the winter rates they charge customers.
The recent filings from the companies with the state Public Service Commission for the Purchase Gas Adjustment (PGA) portion of their overall rates reflect the increased prices the companies have had to pay for gas in recent months.
The PSC usually gives preliminary approval to the rate changes by Nov. 1 of each year.
Mountaineer Gas, the natural gas utility with the most customers in West Virginia, is seeking a $1.45 increase in Mcf over last winter’s rate. The proposed 34.3% increase would take Mountaineer’s Mcf rate to $5.67.
An average customer uses about 15 Mcf’s a month.
State Deputy Revenue Secretary Mark Muchow told state lawmakers earlier this week the price of natural gas has increased from a low of $1.03 to $3.63 per million BTU which is helping drive up severance tax collections in West Virginia.
“Demand is up but supply isn’t up as high as demand so that’s driving prices up,” Muchow said.
Hope Gas/Dominion Energy has the second largest number of customers in West Virginia. The company is asking the PSC to raise its winter rate by nearly 16.7% which would represent a 49-cent increase per Mcf.
Peoples Gas, Consumer Gas Utility, Union Oil & Gas and Southern Public are also seeking increases.
West Virginia consumers have enjoyed very low rates for natural gas in recent years mainly because of abundant supply countered by demand that’s been slowed by delays in pipeline construction.
The PSC approved lower rates last year that impacted 96% of residential customers.
Companies determine their PGA by estimating what they expect to pay for gas from their suppliers between Nov. 1 and Oct. 31 of the following year. There’s also a “true up” portion of the request that figures in actual costs from the previous year. The PGA includes no profit for the utility.