Roanoke Gas Co. applies for increase to base rates

Roanoke Gas Co. applies for increase to base rates

The Roanoke Times | By Laurence Hammack

Customers of Roanoke Gas Co. will see their monthly bills go up by nearly 11 percent if regulators approve the company’s request for a base rate increase.

An application filed with the State Corporation Commission states the company is seeking $10.5 million in new revenue from the increase.

Roanoke Gas needs to recover costs associated with ongoing infrastructure investment programs, increases in operations and maintenance expenses, and a new utility plant, it said in a statement Wednesday.

“For 135 years, Roanoke Gas has been committed to providing safe, reliable natural gas service to our customers,” President and CEO John D’Orazio said in the statement.

“This proposed rate request reflects investments to improve service, ensure reliability during extreme weather, and reduce methane emissions from our system.”

The company said the increase is not related to its partnership with the Mountain Valley Pipeline.

Some opponents of the controversial project have argued that its massive price tag — which recently rose to $4.6 billion — would lead partners in the venture such as Roanoke Gas to pass the cost along to their ratepayers.

RGC Midstream, a subsidiary of Roanoke Gas parent company RGC Resources, has a 1 percent ownership stake in the pipeline, which is part of a joint venture that includes four other companies.

However, the rate increase being sought applies only to base rates, the portion of a customer’s bill that is charged to recover the costs of repairing, upgrading and operating the system of pipes used to deliver natural gas to homes and businesses.  Read More >>