CenterPoint Energy Seeking Rate Review, Hike
Evansville-based CenterPoint Energy is seeking a review of its natural gas rates for southwest Indiana to recover costs associated with a recently-completed pipeline upgrade project. The company says it is seeking recovery of the remaining 20% of its investments.
The company’s $240 million pipeline modernization project was filed in 2013 to comply with federal pipeline safety rules to ensure the continued safe, reliable delivery of natural gas service. The utility company provides service to more than 113,000 customers in Daviess, Gibson, Knox, Martin, Pike, Posey, Spencer, Vanderburgh and Warrick counties.
“These infrastructure investments are vital to meeting federal mandates and ensuring the safe and reliable delivery of natural gas to our customers,” said Richard Leger, vice president of natural gas distribution for Indiana and Ohio. “While our natural gas customers will experience a base rate increase to their bills, it will be the first time in nearly 14 years we have pursued such recovery. We remain focused on maintaining affordability for our customers, as demonstrated by our commitment to expense management and continuing to offer natural gas as a cost-effective, reliable energy option due to low, stable natural gas commodity prices.”
Pending approval from the Indiana Utility Regulatory Commission, the average residential southwestern Indiana gas customer could see an approximate increase of about $15 per month. The company says bills should remain substantially lower than they were before the company’s last rate case filing because of lower natural gas commodity costs.
The company is also requesting to continue the natural gas energy efficiency programs through 2025 and the income-eligible universal service program, which provides additional gas bill reductions from December through May.
The filing will begin a comprehensive review by the IURC, which is expected to take several months to complete and will include a public hearing. If approved, CenterPoint says the new rates would go into effect during the third quarter of 2021.