Columbia Gas’ Spending Raises Affordability, Stranded Cost Concerns, OPC Testimony Says
BALTIMORE – Columbia Gas of Maryland’s proposal for an $8.1 million rate increase should be reduced by $5.3 million, the Office of People’s Counsel said in testimony filed this week with the Public Service Commission.
Apart from its proposal for a rate increase that exceeds what is necessary to serve customers safely and reliably, Columbia’s rate of spending on fossil gas infrastructure—contributing to an overall increase in gas costs by 56 percent over five years—presents affordability issues, OPC’s testimony said.
“Columbia’s aggressive spending is leading to rates that are not affordable for residential customers,” People’s Counsel David S. Lapp said. “These investments support gas technologies that are in decline and are contrary to the State’s climate policy. And they are likely to become uneconomic long before their costs are recovered.”
OPC’s testimony also raised concerns about costs paid by Columbia—and recovered from its Maryland customers—by an unregulated subsidiary of Columbia’s parent company, NiSource. Columbia failed to provide sufficient information to support its allocation of costs to Columbia, OPC’s testimony pointed out.
Columbia’s proposal would increase the winter monthly bill for a customer that uses gas for heating (using 160 therms a month) from $157.12 in 2023 to $184.02 in 2024, a 17 percent increase.
OPC has produced two reports describing Columbia’s accelerated gas infrastructure spending and projecting rate impacts in light of the State’s climate policies. It has also requested the Maryland Public Service Commission to initiate a proceeding on priority actions to protect customers from the spending and for long-term gas planning. The Commission has requested interested parties file comments on OPC’s petition by October 10, 2023. More information is available here.
Public comments on Columbia’s rate increase proposal can be provided at evening hearings on Tuesday, August 22, 2023, in Hagerstown and Wednesday, August 23, 2023, in Cumberland, or in written form through the Commission’s website by September 6, 2023. The Commission is expected to issue a final ruling by December 8, 2023, with any new rate set to go into effect on or about December 9, 2023.
The Maryland Office of People’s Counsel is an independent state agency that represents Maryland’s residential consumers of electric, natural gas, telecommunications, private water and certain transportation matters before the Public Service Commission, federal regulatory agencies and the courts.
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