State: Columbia Gas rate request too much

PUCO recommends an increase of 4% to $6.3%

Columbia Gas of Ohio is asking for an increase in its base rates that is too big, according to a report by the staff of state regulators that recommends a much smaller increase.

Last year, Columbia Gas had requested that the Public Utilities Commission of Ohio raise the average customer’s monthly base fee about $11 per month to $46 per month. The cost of gas, along with other fees and taxes, would be in addition to that.

The request in base rates was Columbia’s first since 2008.

The rate increase would increase the revenue of the natural gas distribution company by about $221.4 million a year, or 21.3%

But in a report issued Wednesday, the PUCO staff recommended a much smaller increase, $35.2 million to $57.6 million, an increase of 4% to 6.3% in revenue.

Columbia’s rate request is expected to go before the PUCO commissioners later this year for a final decision. The commissioners can follow the staff recommendation in the report or reject all or part of it.

“Columbia Gas appreciates the time and effort of the PUCO staff,” the company said in a statement. “We are reviewing the staff report and have no further comment at this time.”

In the 255-page report, the staff took exception to several reasons for why Columbia Gas sought the increase ranging from software costs to a workout room at the company’s headquarters.

The rate increase is for pipelines and the system used to distribute natural gas, Columbia has said. It does not apply to the commodity itself; Columbia Gas doesn’t profit from the sale of gas.

Columbia Gas said last year when it introduced its request that a rate increase is necessary to ensure the continued safe and reliable delivery of natural gas and to meet the compliance deadlines for new federal pipeline safety rules. Its work includes upgrading aging pipes and other infrastructure and technology used to inspect and detect pipeline leaks.

Columbia Gas is the largest natural gas distribution company in Ohio, supplying gas for lighting, power or heating to more to more than 1.4 million customers in 60 of Ohio’s 88 counties. mawilliams@dispatch.com @Bizmarkwilliams