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2011-12 Gas Distribution Rate Case

Information about our Gas Distribution Rate Case Filed May 4, 2011 with the Public Utilities Commission (Docket DG 11-069)

 

To our valued customers:

In 2011, Unitil filed a request to increase the delivery service rates for our natural gas customers with the NHPUC.  The filing consisted of revised tariff pages and several volumes of supporting testimony and information.  Unitil also requested a step adjustment in rates for capital investments it was undertaking in 2011, and future adjustments in rates for investments in its Bare Steel Replacement Project and associated system improvements.  A settlement agreement was reached in this proceeding, which was approved in April 2012.  This will be the first increase in approximately 10 years in the delivery services rates for our natural gas customers.  While the rates for natural gas supply have varied over the years according to the market, the delivery service rates have not.  This delivery service increase is to allow Unitil to recover costs associated with capital improvements to the system and other increased costs required to meet our obligations of providing safe, reliable service to you, our customers. These improvements will increase the gas system’s reliability and help ensure the system’s future safety. 

The approved delivery service rates, including the step adjustment, increase annual revenues by $3.7 million effective May 1, 2012.  This is an increase of approximately 4.8 percent in the overall cost of natural gas to our customers, including total gas supply costs.  The settlement agreement did not provide for future rate adjustments as discussed above.  There are variations in the impact of the approved rates on different customer classes to reflect differences in the costs of service, as documented in studies filed with the NHPUC.  Effective May 1st, you will see an increase in the total Delivery Charges listed on your bill.  A breakdown of the impact of the new permanent delivery rates on the different customer classes is provided below:

 

Average Increases for Each Customer Class*

Residential Customer ClassAverage Annual % Increase
 
Heating (R5)7.8%
Low Income Heating (R10)4.1%
Non-Heating (R6)11.4%
Low Income Non-Heating (R11)7.2%

 

Commercial & Industrial Customer ClassAverage Annual  % Increase
Low Annual/High WInter Use (G-40)5.8%
Medium Annual/High Winter Use (G-41)2.7%
High Annual/High Winter Use (G-42)2.1%
Low Annual/Low Winter Use (G-50)6.6%
Medium Annual/Low Winter Use (G-51)3.2%
High Annual/Low Winter Use (G-52)1.7%

*Increases are based on previous permanent seasonal rates and assuming customers take Company-supplied Gas Service. Impact will vary depending on usage levels.

In addition to the increases listed above, as a result of the rate case, customers will see a bill increase of approximately 2.0%.  This increase includes 0.4% related to cost of gas changes and 1.6% for local delivery adjustment charge changes (1.3% of the 1.6% local delivery adjustment charge increase is temporary). 

 

If you would like more information about the proceeding you may contact the Commission’s Public Affairs division at 800-852-3793 or our Customer Service team at 866-933-3820.