Utility bill to rise just 1 percent

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ATLANTA --- Natural gas bills will rise about 1 percent for customers of Atlanta Gas Light, or about 90 cents per month for the average residential account, after Wednesday's vote by the Public Service Commission.

It is the company's first rate increase since 1993. This time, the PSC held a series of public hearings around the state -- the first in recent memory before a utility rate case. Most meetings drew 50 to 100 people, all complaining that an increase in the current economy would be a burden.

The weak economy, though, was one of the reasons the company said it needed an increase. It has lost customers and seen its profits shrink in the five years since the last PSC review.

"It's never an easy decision to increase rates, particularly in a difficult economy," said company President Suzanne Sitherwood. "However, the action by the PSC provides necessary revenues to sustain our operations and meet the growing demands for compliance and safety work, while improving our customer-service levels."

The $26.7 million increase is half of what the company had requested, but more than the PSC's staff had recommended.

The company revised its original $54 million request downward after interest rates dropped and Congress extended preferential treatment on accounting for depreciation.

The PSC also trimmed the target profit from 10.9 percent to 10.75, but the staff had recommended lowering it further.

Commission member Stan Wise, the chairman of the PSC's Energy Committee, proposed the lower rate. He said he didn't want to take the recommendation of the PSC staff to cut rates and profits further because he said doing so could weaken the company's ability to attract investor money needed to finance the expansion of lines to new customers.

"It's important for everyone to understand that while the economy is in decline, our utilities have to use that occasion to prepare for that future," he said.

Georgia Watch, the consumer-advocacy organization, applauded the PSC for trimming the increase.

Reach Walter Jones at walter.jones@morris.com.

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dickworth1
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dickworth1 10/28/10 - 02:42 am
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It is also important for
Unpublished

It is also important for Atlanta gas to know that it made millions of customers go to other companies for their gas supply, without a choice.
Atlanta gas light is not on my Christmas list!!!!

Ladyhd
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Ladyhd 10/28/10 - 10:42 am
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seems to me that with the ATL

seems to me that with the ATL gas light pass through charges and administrative fees that if they would tighten their own belts just 2 percent and lower bonuses for million dollar execs they would actually be able to lower the bills not make increases.no pay raises for the lower income people of the us but you can bet that those atl gas light execs will see huge bonuses this year. its time to put what is right in front of million dollar bonuses.

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