Legal 3 col x 11-1/4”
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PUBLIC SERVICE COMMISSION
OF WEST VIRGINIA
CHARLESTON
CASE NO. 24-0496-G-390P
HOPE GAS, INC.
Annual Pipeline Replacement and Expansion Program and Application
to Implement Modification to Existing PREP Gathering Program
NOTICE OF FILING AND HEARING
On May 31, 2024, Hope Gas, Inc. (Hope) filed its Annual Pipeline Replacement and Expansion Program (PREP) Filing with revised PREP Rates, pursuant to W.Va. Code § 24-2-lk, which authorizes the Public Service Commission of West Virginia (Commission) to approve cost recovery of projects to replace, upgrade, and expand natural gas utility infrastructure that are deemed to be just and reasonable and in the public interest.
Additionally, pursuant to Commission Order in Case No. 23-0317-G-PC, Hope shall assess and collect a surcharge rate increment (Legacy Surcharge) on each customer that becomes a customer of Hope through Hope’s acquisition of additional gas utilities (or their assets) and merged into Hope on and after January 1, 2023. The Legacy Surcharge shall be a rate equal to Hope’s PREP rate for the customer’s appropriate class.
In its base case PREP Filing, Hope projects PREP capital investment for calendar year 2025 of $65.5 million as part of its General Program (core distribution system) and Gathering Program (gathering facilities) under multi-year plans. The PREP Filing also contains a true-up for actual versus projected 2023 calendar year PREP capital investment activity for both the General Program and the Gathering Program. The PREP covers several categories of plant asset replacements and improvements, including mains, service lines, regulator stations and other plant equipment. These plant investments are proposed to be made in Hope service territories throughout the State. These projects are identified in the PREP Filing, which is on file and available for public inspection at the Commission’s offices at 201 Brooks Street, Charleston, West Virginia.
In this annual PREP filing, Hope is also reconciling actual costs under Southern Public Service Company’s (Southern) Infrastructure Replacement and Expansion Program as directed by the Commission in a prior order approving Hope’s acquisition and merger of Southern into Hope.
Hope proposes to recover costs associated with these investments through an increment within the fixed or volumetric, base rate component of its rates depending on the applicable rate schedule under which service is rendered, to be effective on November 1, 2024. Hope projects that if the program and rate increments are approved as requested, the average monthly bill for the various classes of customers will be changed on November 1, 2024, as follows.
HOPE GAS, INC. – PROPOSED
TYPE OF CUSTOMER $ INCREASE % INCREASE
Residential Sales (Rate Class RS) $6.08 6.34%
Small Commercial Sales (Rate Class SGS) $18.04 5.58%
Small Commercial Transport (Rate Class SGS) $108.45 10.39%
Large Commercial Sales (Rate Class LGS) $152.91 1.24%
Large Commercial Transport (Rate Class LGS) $146.35 1.70%
Large Commercial-Industrial – Distribution Sales $1,213.38 6.02%
(Rate Class LCI-D)
Large Commercial-Industrial – Distribution Transport $1,161.35 5.07%
(Rate Class LCI-D)
Large Commercial-Industrial – Direct Service Transport $339.46 13.32%
(Rate Class LCI-DS)
Resale Sales (Rate Class WS) $1,681.87 5.21%
Gathering (Rate Class PGAS) $1,864.52 4.90%
FORMER PEOPLES GAS WV – PROPOSED
TYPE OF CUSTOMER $ INCREASE % INCREASE
General Service – Residential Sales $6.41 6.10%
General Service – Commercial Sales $21.49 4.80%
Commercial Transport – IAN Produced $20.55 13.80%
Industrial Sales $22.66 0.65%
Industrial Transport – WV Produced $77.79 3.18%
FORMER SOUTHERN PUBLIC SERVICE COMPANY – PROPOSED
TYPE OF CUSTOMER $ INCREASE % INCREASE
General Service – Residential Sales $4.54 7.03%
General Service – Commercial Sales $18.46 5.81%
Transportation – Residential Fully Distributed $7.57 16.12%
Transportation – Commercial $146.35 1.67%
FORMER STANDARD/BAZZLE GAS COMPANY – PROPOSED
TYPE OF CUSTOMER $ INCREASE % INCREASE
General Domestic – Residential Sales $5.13 7.36%
Commercial Service – Sales $12.09 6.52%
The increases shown are based on averages of all customers in the indicated classes. Each class may receive an increase greater or less than stated here. Individual customers may receive increases that are greater or less than average. Furthermore, the requested rates and charges are only a proposal and are subject to change (increase or decrease) by the Commission in its review of this filing. Any increase in rates and charges will not become effective until authorized and approved by the Commission.
The Commission adopted the following procedural schedule:
EVENT DEADLINE
Filing Date May 31, 2024
Staff/lntervenor Direct Testimony 4:00 p.m., August 26, 2024
All Rebuttal Testimony 4:00 p.m., September 5, 2024
Agreed Order of Witnesses 4:00 p.m., September 10, 2024
Evidentiary Hearing September 13, 2024 at 9:30 a.m.
Howard M. Cunningham Hearing Room,
201 Brooks Street, Charleston, West Virginia
If the Commission receives no opposition to the PREP Filing within one week of the hearing date, the hearing may be waived, and the Commission may issue a final Order within 150 days of the filing date.
Anyone desiring to intervene should file a written petition to intervene within twenty (20) days following the date of this publication unless otherwise modified by Commission Order. All requests to intervene should briefly state the reason for the request to intervene and comply with the rules on intervention set forth in the Commission’s Rules of Practice and Procedure. The Commission will receive public comments until the beginning of the hearing. All written comments and requests to intervene should state the case name and number and be addressed to Karen Buckley, Executive Secretary, P.O. Box 812, Charleston, West Virginia 25323. Public Comments may also be filed online at http://www.psc.state.wv.us/scripts/online comments/default.cfm by clicking the “Formal Case” link.
HOPE GAS, INC.