PUBLIC SERVICE COMMISSION
OF WEST VIRGINIA
CHARLESTON
CASE NO. 23-0434-G-PC
HOPE GAS, INC. and SOUTHERN PUBLIC SERVICE COMPANY
Joint petition for consent and approval for Hope Gas, Inc.
to acquire Southern Public Service Company
NOTICE OF FILING
On May 19, 2023, Hope Gas, Inc. (Hope) and Southern Public Service Company (Southern) (jointly, petitioners) filed with the Public Service Commission of West Virginia (Commission) a joint petition (Joint Petition) for Commission consent and approval of an acquisition transaction pursuant to which Hope would acquire all of the capital stock in Southern and merge Southern into Hope. Southern currently provides natural gas sales to approximately 6,400 customers in six counties in West Virginia.
In the Joint Petition, Southern and Hope assert that the acquisition transaction will have no adverse effect on Southern’s or Hope’s customers, other public utilities, or the public in general. Following the transaction, the former utility assets of Southern will be owned and operated by Hope, subject to the Commission’s continuing jurisdiction and regulation. From and after the closing of the acquisition, the former customers of Southern will become customers of Hope.
Upon the closing of the Transaction, Southern’s customers will continue to pay Southern’s existing base rates and purchased gas adjustment (PGA) rate as it changes from time to time, and a Legacy Surcharge rate increment, which surcharge equates to Hope’s pipeline replacement and expansion (PREP) rate increment, as it changes from time to time. Consequently, at close, based on the current base, PGA and surcharge rates proposed, the average monthly bill impact for Southern’s customers as a result of the Transaction will be as follows:
Type of Increase/(Decrease) Percentage
Customer Increase/(Decrease)
Residential $5.88 9.74%
Commercial $17.39 7.20%
Transportation $224.77 2.73%
Hope proposes that the Southern customers will eventually pay the Hope base rates plus PGA rates and Legacy Surcharge as those rates change from time to time. If the Southern customers were immediately charged the Hope base rates, the current Hope PGA rate, and the current Legacy Surcharge rate, the average monthly bill impact for Southern’s customers as a result of the transaction would be as follows:
Type of ($) (%)
Customer Increase/(Decrease) Increase/(Decrease)
Residential $25.92 42.97%
Commercial $56.20 23.28%
Transportation ($1,701.96)** (20.68%)
**Does not reflect the cost of retainage. Hope will retain between 5.5% and 8.0% of a transportation customer’s self-supply gas delivered to Hope.
The Joint Petition is on file with and available for public inspection at the Commission, 201 Brooks Street, Charleston, West Virginia, and is available online at the Commission website ( www.psc.state.wv.us . Anyone desiring to intervene or protest should file a written request to intervene or protest no later than thirty (30) days following the date of this notice, unless such period is otherwise modified by Commission Order. Failure to timely intervene or protest can affect your right to participate in or protest aspects of this proceeding. All requests to intervene or protest should briefly state the reason for the request to intervene or protest and comply with the rules set forth in the Commission’s Rules of Practice and Procedure . All requests to intervene and protests should state the reason for the request to intervene or protest and comply with the rules set forth in the Commission’s Rules of Practice and Procedure. All requests to intervene and protests should contain the case name and number and be addressed to Karen Buckley, Executive Secretary, Public Service Commission of West Virginia, P.O. Box 812, Charleston, West Virginia 25323.
In the absence of substantial protest received within thirty (30) days of the issuance of this notice, the Commission may waive formal hearing and grant the Joint Petition based on the Commission’s review of the evidence submitted with the Joint Petition.
HOPE GAS, INC.
SOUTHERN PUBLIC SERVICE COMPANY