Charleston, WV (WOAY) – The West Virginia Public Service Commission (PSC) staff and ratepayer advocates have rejected Mountaineer Gas Company’s request for a $19.74 million increase in net revenue.
PSC staff state that a net revenue increase for Mountaineer Gas should not exceed $10.51 million.
The staff argues the company is looking for a double recovery on its return on prepaid insurance, gas, and other expenses.
Witnesses for the Consumer Advocate Division, an independent branch of PSC representing residents and PSC staff, recommend that the company utilize a weather normalization mechanism.
The mechanism adjusts consumers’ bills based on accurate heating degree days rather than the company calculating 10-year averages for standard heating degree days for a billing period.
Advocates and the PSC staff agree that the mechanism would transfer company risk from shareholders to ratepayers.
In March, Mountaineer Gas filed a net increase of over 6%.
Additionally, PSC approved a 15% increase in average monthly residential Mountaineer Gas Bills in November.
The hike resulted in monthly residential bills totaling $165.59 for 13,000 cubic feet of gas.
The company reported a net income of $16.4 million and an end-of-year balance of $47.3 million in an annual report for the fiscal year ending September 30, 2022.