CGV’s Proposed Rate Case will Increase Delivery Charges for TS-1 and TS-2 Accounts

Columbia Gas of Virginia recently sent out letters to all TS-1 and TS-2 accounts notifying them about the rate case and the changes/ increases to each rate.  In addition to a proposed increase in the bank penalty fee and the daily transfer service fee, as well as the proposed indexes to use for any index-related pricing in the tariff,  CGV is also asking for a significant increase in their delivery (non-gas) charges.  Currently, TS-1 and TS-2 customers pay a delivery rate based on a tiered scale for each Dth of usage per month.  The proposed changes to the delivery rate represent a 17.08% increase over the current delivery charges for TS-1 accounts and a 23.61% increase over the current delivery rates for TS-2 accounts.

To put this in perspective, if you use 2000 Dth per month on average under the TS-1 rate, your CGV delivery charges will increase by $423.68 per month on average.

If you use 10,000 Dth per month on average under the TS-1 rate, your CGV delivery charges will increase by $1074.33 per month on average.

If you use 30,000 Dth per month on average under the TS-2 rate, your CGV delivery charges will increase by $2964.42 per month on average.

If you use 60,000 Dth per month on average under the TS-2 rate, your CGV delivery charges will increase by $4779.42 per month on average.

 CGV has asked for the increase in their rates as they are expecting an annual revenue deficiency of $37 million, of which $30 million is expected to be recovered by customer rate increases.  Part of this also includes asking for a higher return on equity, which is currently set by the 2014 rate case at 9%-10%, and CGV is now requesting an increase to 11.25%.