Market Overview

RGC Resources' Roanoke Gas Subsidiary Receives Rate Case Staff Recommendations


ROANOKE, Va., July 01, 2019 (GLOBE NEWSWIRE) -- The Staff of the State Corporation Commission issued its analysis and recommendations in the Company's general rate case proceeding.  The Staff testimony recommends a gross rate increase of $6.4 million.  

"While we disagree with many of the Staff's recommendations, we are pleased that Staff's proposed rate increase, when combined with the incorporation of SAVE rider revenue, is within range of the Company's estimated award," stated Paul Nester, Roanoke Gas Company President.  "Most of this difference relates to certain novel and unprecedented rate making proposals included in the testimony.  The Company respectfully disagrees with the manner in which Staff proposes to account for certain items, notably the treatment of the SAVE rider revenue and the new gate stations.  The Company intends to present its arguments to the Commission on the merits of these recommendations as well as other proposals in the Staff's testimony."

The Company will also refute the gas supply analysis performed by the Staff's third-party consultant.  "The Company is obligated to safely and reliably deliver natural gas to our customers on the coldest winter day.  Staff's consultant ignores this basic tenet of the local distribution company," stated Nester. "With the continued economic development in the Roanoke Valley, gas provided by the Mountain Valley Pipeline (MVP) will support and strengthen the Company's ability to serve its customers.  Further, Franklin County cannot economically have natural gas service without the MVP."

The Company's rebuttal testimony is due in late July and the rate case hearing is currently scheduled for August. 

Contact: Paul W. Nester
  Vice President and CFO
  President, Roanoke Gas Company
Telephone:  (540) 777-3837

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