Columbia Gas of Pennsylvania Monday filed with the Pennsylvania Public Utility Commission (PUC) for a rate hike, its first such request in 12 years, the utility said.

“Our rate request is a direct reflection of our cost of doing business, which includes the replacement of our aging natural gas delivery system,” said Columbia Gas of Pennsylvania President Terrence J. Murphy. “[T]he facilities are simply nearing the end of their useful operating lives and need to be replaced. At the same time, the cost of delivering gas — like everything else — has increased over the last decade when we last adjusted our rates.”

The company is proposing an increase of $59.9 million annually (a 10.3% increase in annual revenues). Residential customers using 7.2 Mcf/month would pay $113.94, an increase of $10.99, or less than 11%, the company said. Commercial customers using 43.5 Mcf/month would pay $557.89, up $23.13. Industrial customers using 500 Mcf/month would pay $6,029.45, up $241.11.

The proposed effective date for the increase is March 28. However, this will likely be suspended while the PUC reviews the request. The review is expected to last about nine months.

“Some customers may be under the impression that we’ve adjusted distribution rates periodically over the years,” said Murphy. “Distribution rates reflect the costs with the delivery of gas to customers and make up less than 30% of the average bill. Each quarter we file for adjustments with the PUC for our purchased gas costs…The gas cost makes up the majority of the average bill and is subject to market prices that are driven by supply and demand.”

The company said it has pledged to expand its weatherization and customer assistance efforts. It also noted that it recently announced plans to invest $1.4 billion to replace aging pipes and other facilities. The goal is to replace about 600,000 feet of aging underground pipes and distribution facilities each year.

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