PSNC Energy (PSNC), a wholly owned subsidiary of SCANA Corporation, has filed an application with the North Carolina Utilities Commission requesting a general increase of approximately US$41.6 million, or approximately 9.7%, in annual revenue. If the request is approved, the average year-round residential customer would see a monthly increase of approximately US$3.41.
The rate increase request is the direct result of PSNC's need to recover costs to operate and expand its pipeline system, implement an integrity management rider, and establish a deferral mechanism for distribution integrity management operations and maintenance expenses. Since its last rate case filing in 2008, PSNC has made approximately US$609 million of capital investment in its utility property. In addition, the company has installed more than 1424 miles of transmission and distribution mains and added approximately 77 000 customers to its system over that timeframe. PSNC estimates that it will spend an additional US$149 million in plant capital investments by 30 June 2016.
"Since PSNC's last rate increase eight years ago, we have continued to invest in our system to meet the needs of our customers," said PSNC President and Chief Operating Officer, Rusty Harris. "It is essential to recover these costs in order to continue to meet our customers' needs and provide safe and reliable natural gas service."
In its rate case application, PSNC is also requesting approval of a rider to its rates to track and provide for ongoing recovery of capital expenses related to PSNC's transmission and distribution pipeline integrity management programmes. These safety related programmes are in response to the United States Department of Transportation requirements of identifying and assessing risks on the system and remediating conditions that present a potential risk to pipeline integrity.
Finally, PSNC is seeking authority to include in the company's cost of service US$2 million related to distribution integrity management programme operations and maintenance (O&M) expenses incurred through 31 December 2015. PSNC is also seeking authority to continue the deferred accounting treatment for O&M expenses associated with its transmission integrity programme and defer those O&M expenses associated with its distribution integrity management programme in excess of US$2 million.
PSNC does not expect the Commission to rule on its request until this autumn.
Edited from source by Stephanie Roker
Read the article online at: https://www.worldpipelines.com/business-news/01042016/psnc-application-for-rate-increase/