CU gas supplier proposes 40% rate increase

SBJ Staff

Posted online May 30, 2008 | 11:14 am

City Utilities has filed to intervene in a proposed 40 percent rate increase from Southern Star Central, CU’s primary natural gas pipeline supplier.

Southern Star filed the proposal April 30 with the Federal Energy Regulatory Commission, with a proposed effective date of June 1. The proposed increase would cover additional costs related to transportation and use of Southern Star’s storage capacity, according to a CU news release.

The commission has ordered a temporary suspension on the rate change, and a pre-hearing conference should happen in mid-June, the release said.

If the new rates are approved, CU would see an annual impact of about $3.2 million to natural gas costs. CU is looking at ways to recover those costs within its natural gas rates, the release said.

CU is one of 17 companies listed as interveners on the case’s docket.[[In-content Ad]]