Proposed Major Rate Increase

NY-ADR

1/3/24 N.Y. St. Reg. PSC-01-24-00015-P
NEW YORK STATE REGISTER
VOLUME XLVI, ISSUE 1
January 03, 2024
RULE MAKING ACTIVITIES
PUBLIC SERVICE COMMISSION
PROPOSED RULE MAKING
HEARING(S) SCHEDULED
 
I.D No. PSC-01-24-00015-P
Proposed Major Rate Increase
PURSUANT TO THE PROVISIONS OF THE State Administrative Procedure Act, NOTICE is hereby given of the following proposed rule:
Proposed Action:
The Commission is considering a proposal filed by National Fuel Gas Distribution Corporation (NFG) to increase its annual gas delivery revenues as contained in its tariff schedule P.S.C. No. 9 — Gas.
Statutory authority:
Public Service Law, sections 5, 65 and 66
Subject:
Proposed major rate increase.
Purpose:
To ensure safe and adequate service at just and reasonable rates charged to customers without undue preferences.
Public hearing(s) will be held at:
10:30 a.m., April 16, 2024 and continuing daily as needed (Evidentiary Hearing)* at Department of Public Service, 19th Fl. Board Rm., Three Empire State Plaza, Albany, NY 12223.
*On occasion, there are requests to reschedule or postpone hearing dates. If such a request is granted, notification of any subsequent scheduling changes will be available at the DPS website (www.dps.ny.gov) under Case 23-G-0627.
Interpreter Service:
Interpreter services will be made available to hearing impaired persons, at no charge, upon written request submitted within reasonable time prior to the scheduled public hearing. The written request must be addressed to the agency representative designated in the paragraph below.
Accessibility:
All public hearings have been scheduled at places reasonably accessible to persons with a mobility impairment.
Substance of proposed rule:
The Commission is considering a proposal, filed by National Fuel Gas Distribution Corporation (NFG or the Company) on October 31, 2023, to increase its annual gas delivery revenues for the rate year ending September 30, 2025, as contained in P.S.C. No. 9 — Gas.
NFG is requesting an increase in annual gas delivery revenues of approximately $88.8 million (30.8 percent increase in base delivery revenues, or 11.1 percent in total revenues) for the rate year ending September 30, 2025. The Company projects that the requested increase in revenues will result in a total average residential heating customer monthly delivery bill increase of about $11.69 or 29.3 percent, and a total monthly bill increase of $11.31 or 13.7 percent. The Company states that the four primary drivers of the rate increase include: (1) an increase to rate base, which is driven by the leak prone pipe replacement program and the impacts of high inflation on internal and external labor and materials; (2) increased operations and maintenance expense; (3) higher cost of capital; and (4) regulatory asset and liability amortizations, which are being driven principally by the recovery of regulatory asset balances associated with the deferral of revenues earned under the Company’s leak prone pipe replacement tracking mechanisms. The initial suspension period for the proposed filing runs through March 30, 2024.
The full text of the proposal and the full record of the proceeding may be reviewed online at the Department of Public Service web page: www.dps.ny.gov. The Commission may adopt, reject or modify, in whole or in part, the action proposed and may resolve related matters.
Text of proposed rule and any required statements and analyses may be obtained by filing a Document Request Form (F-96) located on our website http://www.dps.ny.gov/f96dir.htm. For questions, contact:
John Pitucci, Public Service Commission, 3 Empire State Plaza, Albany, New York 12223-1350, (518) 486-2655, email: [email protected]
Data, views or arguments may be submitted to:
Michelle L. Phillips, Secretary, Public Service Commission, 3 Empire State Plaza, Albany, New York 12223-1350, (518) 474-6530, email: [email protected]
Public comment will be received until:
Five days after the last scheduled public hearing.
Regulatory Impact Statement, Regulatory Flexibility Analysis, Rural Area Flexibility Analysis and Job Impact Statement
Statements and analyses are not submitted with this notice because the proposed rule is within the definition contained in section 102(2)(a)(ii) of the State Administrative Procedure Act.
(23-G-0627SP1)
End of Document