The Virginia State Corporation Commission (VSCC) has approved Virginia Natural Gas’ (VNG) request to use a weather normalization adjustment (WNA) to reduce the effect of weather on customer’s natural gas bills. The company also committed not to file for a general rate increase for at least two years.

The groundbreaking WNA decision makes VNG the first company to receive such an approval in the state. The two-year rate freeze commitment extends the time since VNG’s last rate increase in 1996 to eight years. VNG filed the application for the WNA with the VSCC in April.

“After the experiences of the last two winters — record-breaking cold temperatures and high commodity prices in 2000 and warmer-than-normal weather in 2001 — we felt a change from past practice was needed,” said Hank Linginfelter, VNG president. “Periods of extended cold weather followed by extended warm weather have been disruptive to gas customers and VNG.

“The adjustment will provide revenue stability enabling us to better plan and schedule system maintenance and improvements which contribute to operational quality and pipeline safety,” Linginfelter added. “Customers will receive those benefits plus the advantage of lower bills in colder weather.”

With the WNA in place, customer’s bills will be reduced when winter weather is colder-than-normal and surcharges will be added to bills when the weather is warmer-than-normal. VNG said a factor based on usage by customers and weather conditions during each billing cycle will be used to determine the credit or surcharge.

VNG, a wholly owned subsidiary of AGL Resources Inc., provides retail natural gas sales and distribution services to 245,000 customers in southeastern Virginia.

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