PUBLIC SERVICE COMMISSION
OF WEST VIRGINIA
CHARLESTON
CASE NO. 23-0468-G-390P
CARDINAL NATURAL GAS COMPANY SOUTHERN DIVISION
Infrastructure Replacement and Expansion Program
Filing for 2024 IREP Year.
NOTICE OF FILING
On June 2, 2023, Cardinal Natural Gas Company Southern Division (Cardinal) filed an Application for approval of an Infrastructure Replacement and Expansion Program for 2024 (2024 IREP) with revised IREP rates, pursuant to W.Va. Code ยง24-2-1k, which authorizes the Public Service Commission of West Virginia to approve expedited cost recovery of projects to replace, upgrade and expand natural gas utility infrastructure deemed to be just and reasonable and in the public interest.
In its Application, Cardinal forecasts capital investment for its 2024 IREP Year of approximately $2.2 million as part of its multi-year plan. The 2024 IREP covers several categories of plant asset improvements, including mains, services, meters, and other plant equipment. The Application is on file and available for public inspection at the Commission’s offices at 201 Brooks Street, Charleston, West Virginia, and online.
Cardinal proposes to recover costs associated with these investments through an increment within the volumetric base rate component of its rates. For the 2024 IREP, this component will be divided into two steps to correspond with Cardinal’s filing of a general base rate case on or around July 6, 2023. Step 1 Rates are proposed to be in effect from November 1, 2023, through April 30, 2024, until new general base rates are expected to take effect, on or about May 1, 2024. Step 1 Rates will incorporate the impact associated with (1) the cumulative IREP investment placed into service through October 31, 2022, and (2) investment projected to be placed into service between November 1, 2022, and October 31, 2024. Step 2 rates are proposed to be in effect for the remaining portion of the 2024 IREP (on or about May 1, 2024, through October 31, 2024) and will reduce the IREP component by incorporating only the impact associated with the investment projected to be placed into service from November 1, 2022, through October 31, 2024.
Cardinal projects that if the program and rate increment are approved as requested, the average monthly bill for its various classes of customers will be changed on November 1, 2023, and on or about May 1, 2024, respectively, as follows:
Step 1 Rates
(November 1, 2023-April 30, 2024)
INCREASE($) INCREASE(%) AVERAGE
USAGE
Residential $7.99 5.42% 8 Mcf
General Services 1 $8.50 4.74% 10 Mcf
General Services 2 $52.39 3.87% 94 Mcf
Interruptible Sales $83.60 3.43% 179 Mcf
Interruptible $450.19 10.11% 1,286 Mcf
Transportation
Step 2 Rates
(May 1, 2024-October 31, 2024)
DECREASE($) DECREASE(%) AVERAGE
USAGE
Residential $16.45 11.15% 8 Mcf
General Services 1 $17.50 9.75% 10 Mcf
General Services 2 $107.88 7.96% 94 Mcf
Interruptible Sales $172.18 7.06% 179 Mcf
Interruptible $927.04 20.81% 1,286 Mcf
Transportation
At the same time that IREP rates decrease pursuant to Step 2, Cardinal has requested to implement an increase in its base rates. When both the base rate increase and IREP rate decrease pursuant to Step 2 are in effect, the total amount due on monthly bills for Cardinal customers may not be lower than, and in fact, likely will be higher than, the amount that was billed each month when Step 1 IREP rates were in effect.
The increases shown above are compared to the rates currently in place and are based on averages of all customers in the indicated class. Each class may receive an increase greater or less than stated here. Individual customers may receive increases that are greater or less than average.
The Commission has scheduled an evidentiary hearing on the Application, if necessary. The hearing is scheduled to begin at 11:00 a.m., on August 23, 2023, in the Conference Room, Bluefield City Hall, 200 Rogers Street, Bluefield, West Virginia. If no opposition to the Application is received by the Commission within one week of the hearing date, the hearing may be waived and the Commission may issue a final order within one hundred fifty days of the Application filing date.
Anyone desiring to intervene should file a written petition to intervene within twenty 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 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 the Commission website by clicking the “Formal Case” link.
CARDINAL NATURAL GAS COMPANY (SOUTHERN DIVISION)
ID: 716249