LIBERTY UTILITIES (ENERGYNORTH NATURAL GAS) CORP. d/b/a LIBERTY UTILITIES - KEENE DIVISION
No. 25, 960
DG 16-812
New Hampshire Public Utilities Commission
October 28, 2016
2016-2017
Winter Cost of Gas Filing. Order Approving Cost of Gas Rates
and Other Charges
Michael J. Sheehan, Esq., for Liberty Utilities (EnergyNorth
Natural Gas) Corp. d/b/a Liberty Utilities; John S. Clifford,
Esq., for the Staff of the Public Utilities Commission.
Martin
P. Tlonigberg, Chairman
In this
order, the Commission approves Liberty's proposed
2016-2017 winter cost of gas rates for its Keene Division.
For non-fixed price residential customers, the initial
residential rate for the winter period (November 1, 2016 -
April 30, 2017) will be $1.5152 per therm and the fixed-price
rate will be $1.5352 per therm for the entire winter period.
The impact of the cost of gas rate increase is an overall
increase in the typical residential heating customer's
winter costs over last winter of approximately $456, or
45percent.
I.
PROCEDURAL HISTORY
Liberty
Utilities (EnergyNorth Natural Gas) Corp. d/b/a Liberty
Utilities - Keene Division (Liberty-Keene) is a public
utility distributing propane air gas in Keene. On September
15, 2016, Liberty-Keene filed its proposed cost of gas (COG)
rates for the 2016-2017 winter period. The filing included
direct testimony and supporting schedules. Commission Staff
conducted discovery and met with Liberty-Keene in a technical
session on October 4, 2016. A final public hearing was held
on October 11. There were no petitions for intervention filed
in the docket and no person, other than the Company, appeared
at the final hearing to provide public comment either in
support of or in opposition to the proposed COG rates.
Liberty-Keene's
filing and subsequent docket entries, other than any
information for which confidential treatment is requested of
or granted by the Commission, are posted on the
Commission's website at:
http://www.puc.nh.gov/Regulatory/Docketbk/2016/16-812.html.
II.
COST OF GAS ADJUSTMENT MECHANISM
The
cost of gas adjustment mechanism was implemented in 1974
during a time of rapidly changing prices as a way to
immediately pass on to consumers price increases and
decreases in energy supply costs without having to go through
extended proceedings to change delivery rates. Supply costs
are expected to make up approximately 50 percent of a
residential heating customer's annual bill. Liberty has
no control over the price of propane gas which is an
unregulated commodity. The COG mechanism allows the Company
to directly and efficiently pass along those costs to its
customers without mark-up or profit. COG rates are initially
set using projected costs and sales for the upcoming winter
period. The Company may adjust COG rates monthly to take into
account changes in the propane market based on actual costs
to date and projected costs for the remainder of the period.
All
supply costs and revenues are reconciled semi-annually...