
                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: TUESDAY, January 31, 1995                   TAG: 9501310139
SECTION: BUSINESS                    PAGE: B-6   EDITION: METRO 
SOURCE: GREG EDWARDS STAFF WRITER
DATELINE:                                 LENGTH: Short

SCC, ROANOKE GAS DIFFER ON RATE RAISE

A State Corporation Commission hearing officer in Richmond listened Monday to Roanoke Gas Co.'s arguments for a rate increase, but the company and the SCC staff stand about $200,000 apart on what that rate increase should be.

Roanoke Gas filed a request last June with the SCC for a $1.3 million or 2.4 percent rate increase, and implemented it Nov. 13 on an interim basis subject to refund. The increase amounted to $1.64 on an average residential bill, bringing it to $59.22 a month.

SCC spokesman Ken Schrad said the company has since agreed to scale back the request to about $800,000, but the SCC staff believes it should be reduced to about $617,000.

Among company expenses being disputed by the SCC staff are $46,000 in charitable contributions, $80,000 in investments in its liquefied natural gas plant in Botetourt County and $17,000 in advertising expenses.

In the past, the commission has allowed utilities to reclaim 100 percent of their charitable contributions in rate cases, but the staff believes the policy should be changed and the contributions charged to stockholders rather than the company's customers, Schrad said.

A recommendation to the three SCC judges on the Roanoke Gas rate increase can be expected in about two months from Hearing Officer Deborah Ellenberg, Schrad said.

by CNB