PUCO staff against natural gas bill increase; propose decrease for 1.2M Ohio customers - cleveland.com

PUCO staff against natural gas bill increase; propose decrease for 1.2M Ohio customers - cleveland.com

CLEVELAND, Ohio — The East Ohio Gas Co. wants state regulators to approve charging natural gas customers another $13 each month. But regulators, in response, are instead recommending that rates become about $12 cheaper.

While still early in the process, staff working for the Public Utilities Commission of Ohio issued a 180-page report Wednesday recommending that the utility company collect anywhere from $251 million to $225 million less from ratepayers each year.

Bill increases were initially requested late in 2023 in a process called a rate case. Any changes are not expected to take effect until 2025.

At the time of the rate request, East Ohio Gas was owned by Dominion Energy, but it has changed hands and is now owned by Enbridge, a Canadian pipeline and energy company headquartered in Calgary, Alberta.

Most households in Cuyahoga, Summit, Geauga, Lake and Portage counties have East Ohio Gas as their natural gas utility.

The initial request would raise monthly distribution costs for residential customers from $43.27 to $56.31 - an increase of roughly 30%. Along with rates for commercial customers, the proposed changes would increase yearly revenues by $212 million.

PUCO staff is recommending a rate of roughly $31, or about $12 less then customers pay for distribution rates now. But the final number would depend on how much less revenue Enbridge collects, according to the report.

In a rate cases regulators go line-by-line to decide what customers should pay for, with the expectation that a utility company should get a reasonable profit.

Regulators decided that Enbridge should collect less — not more — revenue from customers after reviewing the rate case.

It is too early in the process to say how exactly this would change customers’ bills.

The report was issued by the PUCO’s staff, but it is not a final decision. There are many more steps in the rate case process and ultimately the commissioners will make the decision.

The Ohio Consumers’ Counsel said the PUCO staff recommending a decrease in rates “is a good start.” But the organization noted that it is still early.

“Time will tell if the PUCO staff’s recommendation holds up,” the OCC said in a statement. “Months of litigation, hearings, filings, testimony, and negotiation remain before the PUCO commissioners rule on Dominion’s (Enbridge’s) 30% increase request.”

Each rate case also includes public hearings. Those have yet to be scheduled.

Cleveland.com has reached out to Enbridge and the PUCO for comment.

Sean McDonnell is the business reporter for cleveland.com and the Plain Dealer. You can reach him at smcdonnell@cleveland.com.