Liberty Utilities (Energynorth Natural Gas) Corp., 102816 NHPUC, 25, 960

Case DateOctober 28, 2016
CourtNew Hampshire
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...

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