Columbia Gas of Virginia is asking state regulators for a revenue increase that would raise the average residential customer’s monthly bill by about $9.
If the request is approved, the average monthly bill of a residential customer using 5.1 dekatherms of gas would go from $76.26 to $85.17, an increase of 11.7%. Regulators say the proposed increase cannot take effect until at least October, at which time Columbia Gas will be allowed to enact it on an interim basis, subject to potential refunds.
By law, the Chester-based natural gas provider passes on the cost of natural gas to consumers directly without markup. In a filing with the State Corporation Commission, Columbia Gas said it wants to increase its non-gas revenues by $52.6 million annually.
Columbia Gas of Virginia said it seeks the additional revenue because its return on equity is less than what the state allows it to earn and it has been spending money on “ongoing capital investments to accommodate pipeline and facility safety and modernization and to accommodate sustained demand for natural gas.” The company said it has seen 1.4% annual growth for the past 10 years.
“From 2023 through 2025, CVA expects to make over $442 million in capital investments for the benefit of customers,” the company wrote in its application to the SCC. “A fair rate of return that appropriately recognizes the financial and business risks of the Company is essential to CVA’s ongoing ability to access and attract the capital needed for ongoing improvements to the system on reasonable terms for the long-term benefit of our customers.”
The natural gas utility said it’s currently earning a return on equity of 8.08%, below the state-authorized level of 9.7% and below the 10.85% that it wants state regulators to approve. A regulated utility’s return on equity is essentially a measure of its ability to generate profits for investors.
Columbia Gas serves 290,000 residential, commercial and industrial customers in 98 cities, towns, and counties throughout Virginia, including in the Lynchburg region, part of Southside, and Alleghany and Giles counties. The utility was last authorized to raise revenues in October 2022.
The SCC has scheduled a public hearing on Columbia Gas’ request for 10 a.m. Dec. 10. Anyone who wants to comment during that hearing should, by Dec. 4, fill out a form on the SCC website, or email a PDF version of that completed form to SCCInfo@scc.virginia.gov, or call 804-371-9141.Comments can also be submitted via the SCC’s website, or by mail to the Clerk of the State Corporation Commission, c/o Document Control Center, P.O. Box 2118, Richmond, VA 23218-2118. All comments should reference case No. PUR-2024-00030.