PSC Approves 6.4% Rate Increase For Delta Natural Gas

LEXINGTON, Ky. (AP) - Delta Natural Gas received approval from
state regulators for a 6.4 percent rate increase for its customers
in much of eastern Kentucky.
An average customer's bill would increase from $88.46 to $93.96
under the new rates, according to the state Public Service
As part of the revenue increase approved Friday, residential
natural gas customers will pay $15.50 monthly in fixed charges, up
from $10.
Fixed charges cover the costs of offering service. They're the
same for all customers regardless of how much gas is used.
The volume-based delivery charge, which fluctuates with gas use
and makes up the bulk of customers' bills, is unchanged at $4.16
per thousand cubic feet of gas.
Delta is required by law to charge customers the same rate for
gas that it pays.
The commission's order does grant increases that Delta proposed
for reconnection charges, bad check charges and collection charges.
Delta's territory includes an area roughly south of Interstate
64 and east of Interstate 75. It offers service to nearly 40,000
Kentucky customers in more than 20 counties.
Delta initially asked for a 9.2 percent increase.
The company and the state attorney general's office of rate
intervention reached a compromise on the size of the increase last
Information from: Lexington Herald-Leader,

(Copyright 2007 by The Associated Press. All Rights Reserved.)

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