SourceGas Distribution LLC filed a General (Non-Gas) Rate Increase in Nebraska on July 2, 2009
As our valued customer, we want you to know the facts
Q: Why is SourceGas filing this rate increase?
A: SourceGas is experiencing the combination of higher costs, due to several factors including facility investments, increased taxes and inflation, and at the same time, lower revenues from reduced usage per customer, and fewer customers served. Despite lower gas usage and fewer customers, the Company continues to invest in its system to provide the level of service that customers expect. After a thorough analysis, SourceGas has determined that it must adjust its rates in order to keep pace with the impact of lower revenues and higher costs.
Q: How much will this increase my bill?
A: If approved the filed rates would increase an average residential customer’s monthly bill $7.43 or 12.3%; An average small commercial customer’s monthly bill would increase $8.76 or 7.9%.
Q: What does this rate increase cover?
A: It applies to the distribution rates which comprise the smaller portion of an average customer’s utility gas service bill. This represents the costs of operating pipelines, labor, safety services, facilities, meter reading and billing. This filing does not affect the larger portion of an average bill, the natural gas commodity costs, which are based on market prices and currently account for 60 to 65% of an average total annual bill.
Q: When will this increase go into effect?
A: SourceGas expects that the filed rates will become effective on an interim basis subject to refund on October 1, 2009.
Q: When was the last General rate increase?
A: The last increase in the distribution rates was approved in 2006, and was based on 2005 costs.
SourceGas’s rate filing is available at SourceGas’s business offices,
online (links at left) and at the office of the Nebraska Public Service Commission.
Q: Are there any programs available that could help me lower my bill?
A: Yes, SourceGas currently has a HEAT rebate program that provides customer rebates for qualifying purchases and installations of high-efficiency space heating equipment. SourceGas is also proposing in this filing to add water heater rebates to this program. For information on the
HEAT rebate program, click here.
Q: I am on Balanced Billing (formerly Budget Billing) – will my monthly bill be affected by the Nebraska General Rate Increase?
A: Yes. While the rate filing does not affect the natural gas commodity costs, it does apply to the base rate, which recovers the costs of operating pipelines, labor, safety services, facilities, meter reading and billing. Therefore, for a typical residential customer, the interim rates will increase your bill by no more than $8 per month.
Q: I chose the WinterGuard® pricing option from SourceGas Energy Services - will my monthly bill be affected by the Nebraska General Rate Increase?
A: No. According to SourceGas Energy Services, your WinterGuard® Bill monthly amount is not affected by the Nebraska General Rate Increase. If you have any questions regarding WinterGuard, please contact the supplier directly at 1-800-215.3035.
Click here for all of the Choice Gas Suppliers’ contact information.