Energy for ResidentsEnergy for ResidentsGas Information
2011 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:

On May 4 Unitil filed a request to increase the delivery services rates for our natural gas customers with the New Hampshire Public Utilities Commission.  The filing consists of revised tariff pages and several volumes of supporting testimony and information, a copy of which can be viewed at the Commission.  The Commission’s investigation of the Company’s filing may take up to a year.  The toll free number for Commission’s Public Affairs division is 1-800-852-3793.

If approved, this will be the first increase in approximately 10 years in the delivery services rates for our natural gas customers.  While the rates for gas supply have varied over the years according to the price of natural gas supplies, the delivery service rates have not.  The proposed 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 proposed delivery service rates would increase revenues by $3.8 million per year.  This is an increase of approximately 4.7 percent in the overall cost of natural gas to our customers, including total gas supply costs.   There are variations in the impact of the proposal on different customer classes to reflect differences in the costs of service, as documented in studies filed with the Commission.  A breakdown of the impact of the proposed filing on the different customer classes is provided below.

 

Average Proposed Increases for Each Customer Class*

Residential Customer ClassAverage Increase %Average Monthly Increase/Customer
 
Heating (R5)8.0%$8.37
Low Income Heating (R10)4.3%$2.95
Non-Heating (R6)12.0%$4.11
Low Income Non-Heating (R11)3.0%$1.25

 

Commercial & Industrial Customer ClassAverage % IncreaseAverage Monthly Increase/Customer
Low Annual/High WInter Use (G-40)6.0%$14.16
Medium Annual/High Winter Use (G-41)2.7%$58.86
High Annual/High Winter Use (G-42)1.1%$209.10
Low Annual/Low Winter Use (G-50)7.0%$15.89
Medium Annual/Low Winter Use (G-51)2.9%$41.95
High Annual/Low Winter Use (G-52)0.8%$275.35

*Based on present seasonal rates and assuming customers take Company-supplied Gas Service. Impact will vary depending on usage levels.

 

As part of the filing, Unitil is also requesting an adjustment in rates for capital investments it is undertaking in 2011, and future adjustments in rates for investments in its Bare Steel Replacement Project and associated system improvements beginning in 2012.  The initial step adjustment would be implemented at the conclusion of the Commission’s investigation, with subsequent annual adjustments based on Commission review of the Company’s investments.

Finally, Unitil is requesting temporary rates to begin collecting a portion of the proposed revenue increase while the permanent rate request is investigated.  The proposed temporary rate would take effect on August 1, 2011, and would be subject to final reconciliation based on the Commission’s final order in the investigation.

 If you would like more information about the proceeding you may contact the Commission’s Public Affairs division at 1-800-852-3793 or our Customer Service team at 1-866-933-3820.