SourceGas files for 11% rate increase

The average residential and small commercial SourceGas customer may see an increase of approximately $8.28 per month (or 11.6 percent on their average monthly bill) if SourceGas Distribution LLC’s rate increase request is approved.

SourceGas has filed a request with the Wyoming Public Service Commission (WPSC) to increase the nongas component of its rates to cover the increased costs associated with providing natural gas service to 77,250 customers across Wyoming.

The actual increase to customers’ individual monthly bills could be higher or lower depending upon their current rate area and amount of gas consumed.

“After a thorough analysis, we have determined that we must adjust our rates in order to keep pace with the impact of declining customer usage and higher costs. SourceGas is experiencing higher costs, due to several factors including facility investments and operating cost increases,” President Dan Watson said. “Even with the rate increase requested, natural gas remains the economic fuel of choice for home energy needs for Wyoming customers.”

SourceGas is also proposing to combine its current three rate areas that have different non-gas distribution rates, into one rate area for increased administrative efficiency and simplification for consumers. The current three rate areas for the purposes of the natural gas commodity costs are not being combined and will remain the same.

The company’s base rates are comprised of two elements addressed by this filing: a fixed, monthly customer charge and a volumetric charge, which varies from month-to-month depending on the amount of gas used.

The filing does not affect the larger portion of a customer’s bill, the natural gas “commodity” component, which is based on market prices and accounts for 60-65 percent of the total bill. Customers will continue to have the opportunity of locking in a price option for 12 months through the Choice Gas program.

The last increase in the general distribution rates, which covers items such as infrastructure, equipment, labor, materials, and safety services, was approved four years ago in 2006.

This is part of the March 4, 2010 online edition of The Glenrock Independent.

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