Published: November 20, 2008 08:54 pm            

PSC eases Bluefield Gas hike

BLUEFIELD — The Public Service Commission announced Thursday that it has lowered the “purchase gas rate” previously ordered for Bluefield Gas Company, but as of late Thursday afternoon, gas company officials could not say what the immediate impact would be for customers.

“I haven’t received the order yet,” John Ebert, president of Bluefield Gas Company said. “We filed an amended request for an 11.56 (per Mcf) increase that follows their earlier recommendations.” Ebert said he should know the impact on customers by today.

In a press release, the PSC stated it “previously issued a stay on allowing increases of purchased gas costs to give the natural gas commodity market additional opportunity to level out following the price spikes in early 2008, allowing lower rates for customers.” The Commission ruled on a purchased gas rate that was lower than the $12.2988 per Mcf the gas company asked for and lower than the $11.779 per Mcf rate the Administrative Law Judge ruled on before the PSC entered a stay order in the process.

“We entered the stay order to give us time to review the request,” Sarah Robertson, PSC spokesperson said. She said the PSC’s action on Thursday sets the stage for additional public hearings in advance of the final order in April 2009. She said that the commission order lifts the previous stay.

Blaine Braithwaite, executive director of the South Bluefield Neighborhood Association, said that even with the lower rate “customers are still looking at an 18 percent rate increase over what we currently have.” Braithwaite said that the association is arguing that Bluefield Gas should not be able to base its rate increase request on the rates they were paying in the previous year.

The association questioned the “methodology and calculations of a $500,000 under-recovery cost element” from last year. “It is our position that under-recovery amounts can and should be kept to a minimum and these costs are controllable on the part of the utility, not the rate payer,” Braithwaite said, adding that the association will continue to oppose the rate increase request. “This is an on-going process,” he said.

– Contact Bill Archer at barcher@bdtonline.com

        

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