Atmos Energy Corp. filed with the Kentucky Public Service Commission proposing rates that will result in an overall increase of about $10.4 million annually, as well as revised tariff provisions, both of which the utility hopes will become effective Oct. 28.
The proposal would result in the average monthly bill of a residential consumer increasing by about $2.99, or 5.74%, the bill for commercial and public authority consumers rising by about $10.07, or 4.8%, and the bill for industrial and transportation customers by about $478.65, or 10.6%, stated the Sept. 28 filing.
The rate hike was proposed to "allow Atmos Energy the opportunity to recover its reasonable operating costs and to earn a reasonable return on its investment" in order to, among other things, "maintain its facilities and provide the level of service mandated by the Commission and the public."
The utility is also proposing rate design features that would "remove avoidable uncertainties for customers, shareholders and regulators inherent to its traditional rate structures."
Atmos Energy's seeks to maintain the general balance of fixed and variable elements in its distribution rates to reflect the underlying cost characteristics of its service; update its research & development rider unit charge; implement an annual review mechanism to allow for the annual review and adjustment of cost of service and rates; and update the time period used to weather normalize revenues and with the company's weather normalization adjustment rider.
Atmos Energy delivers natural gas to about 3,000,000 residential, commercial, industrial and public authority customers in eight states and has six gas utility operating divisions.