Pending Rate Case
Ohio Valley Gas is requesting a base rate increase for its natural gas utility, which provides service in 16 east-central, southern and western Indiana counties.
Update 11-6-2024: The IURC issued a final order approving the settlement agreement on Nov. 6, 2024.
A settlement agreement is now pending before the IURC, which may approve, deny, or modify any agreement it considers. The OUCC filed supporting testimony on July 10, 2024.
The utility's initial request would have raised annual revenues by approximately $12 million (35%).
All publicly filed documents in this case (Cause No. 46011) are available on the IURC's website.
Most rate cases take approximately 300 days to complete, and a final Commission order is expected this winter. The OUCC's timeline outlines the steps in the process.
- OUCC Testimony
The OUCC filed testimony on May 15, 2024:
- Public Comments
The OUCC issued a written a news release inviting written consumer comments on April 3, 2024.
The IURC has held a public field hearing on Apr. 18, 2024 in Connersville.
- Utility Testimony (Initial Request)
Key components in natural gas bills include gas costs, base rates, and trackers.
Gas Costs
Natural gas utilities buy gas for their customers in a competitive wholesale market. Indiana law allows utilities to adjust rates periodically to recover changes in those costs, which can go up or down. These costs comprise a significant portion of a residential bill and are recovered through the Gas Cost Adjustment (GCA) process.
- Utilities may recover wholesale gas costs on a dollar-for-dollar basis but may not profit on them.
- Before adjusting rates to reflect the costs, a utility must demonstrate that it has shopped prudently in the competitive market.
- Each GCA filing requires OUCC review and IURC approval.
Ohio Valley Gas files gas cost adjustment requests every three months.
The utility's most recent GCA (Cause No. 44147 GCA-47) will affect bills for the months of October, November, and December.
Base Rates
Base rates cover "non-gas" costs for a utility, including operational, maintenance, and capital costs. A natural gas utility is allowed to earn a return on this portion of the bill.
The IURC approved current base rates for Ohio Valley Gas in 2017.
Trackers
Ohio Valley Gas has received approval of a long-term infrastructure plan with periodic rate increases as allowed by state law. To view the case files, click here and enter cause number 45400.
In addition, Ohio Valley Gas may recover costs due to federally mandated pipeline safety matters through an annual pipeline safety adjustment (Cause No. 44137 PSA-8).
Financing Case
Ohio Valley Gas sought financing approval in IURC Cause No. 45932. The OUCC filed testimony on Sept. 29 and the IURC issued a final order on Dec. 20, 2023.
Additional Resources
9-25-2024