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.
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 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.
