Corning Gas 2015 Rate Plan Extension

Corning Gas 2015 Rate Plan Extension
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Company Proposal

Case Information: 11-G-0280

Corning Natural Gas Corporation’s (“Corning”), which serves gas to approximately 15,000 customers throughout the Southern Tier and central regions of New York State, planned to file for a base rate increase on April 30, 2015, based on its projections, of approximately $1.4 million for the 12 months ending April 30, 2016, and $0.8 million each in the 12 months ending April 30, 2017 and April 30, 2018 in view of the impending conclusion of the three-year term of the 2012 Joint Proposal.  In 2015, the focus of the contemplated settlement negotiations was on the possible extension of the gas rates in the 2012 Joint Proposal.  The issues were expected to include but not limited to provisions dealing with continued replacement of leak prone pipe, property taxes, safety and reliability measures and excess earnings.

UIU Advocacy

UIU recommendations included increasing the low-income program monthly discount, no increase to the Customer Charge, and implementation of a reconnection fee waiver program.  The reconnection fee is waived one time per year for a low-income customer enrolled in the Company’s low income program.  UIU participated actively in settlement negotiations, eventually joining a settlement agreement (“2015 Joint Proposal”) in July 2015.

Result

The 2015 Joint Proposal reasonably balances the interests of Corning’s ratepayers, shareholders and company management by providing: (1) for residential ratepayers, a freeze of their gas delivery rates at their current levels, along with rate stability over a two-year period, as well as benefits for low income customers including an increase in the monthly credit and instituting, for the first time, a reconnection fee waiver program; (2) for shareholders, an opportunity to earn a reasonable return on their investment, and, (3), for company management, known funding streams for capital expenditures to ensure system reliability through the addition of a Safety and Reliability Charge.

Case Related Documents

To learn more about these cases, please go to the Department of Public Service’s Document and Matter Management System (“DMM”) under the above referenced case number.