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

DATE: THURSDAY, June 16, 1994                   TAG: 9406210082
SECTION: BUSINESS                    PAGE: B-8   EDITION: METRO 
SOURCE: By MELISSA CURTIS STAFF WRITER
DATELINE:                                 LENGTH: Medium

GAS RATE INCREASE SOUGHT

Roanoke Gas Co. asked the State Corporation Commission on Tuesday to approve an increase in its rates that it said would add $1.63 to a typical residential utility user's monthly bill.

The utility also asked state regulators to approve two experimental rate plans that offer industrial customers backup gas service during the winter months in exchange for paying higher rates year-round.

The request for a 2.5 percent rate increase comes a month after the SCC denied Roanoke Gas' previous request for a 3 percent rate increase, instead approving only a 1.4 percent increase. Roanoke Gas said at the time it would need to file another request.

Rob Glenn, vice president of marketing and strategic planning, said the $1.28 million in additional annual revenue is needed for three reasons: to continue a 20-year program to replace old cast iron gas mains with plastic pipes, to improve the system in southwest Roanoke that suffered greatly from extreme cold temperatures last winter, and to cover the "normal increases" in operating costs.

Glenn said the extra $1.63 will start showing up on customer bills Nov. 15, but the SCC's decision on the increase request will not be made for another year.

Virginia regulations allow utilities to implement rate changes after 150 days if the SCC has not acted, provided customers are given refunds if the agency later denies all or part of the proposed increase.

Glenn said if the increase is not approved, customers will be reimbursed with interest in the form of a one-time credit.

Roanoke Gas also requested approval from the SCC of two experimental plans that offer what Glenn called "firm gas" to industrial customers.

One plan that Glenn called "firm transportation" supplies uninterrupted gas service to industrial customers. The gas is supplied by other marketers, what Glenn calls a "virtually unlimited amount."

The other proposal, the backup service plan, supplies uninterrupted service as well, but is offered at a lower rate than the "firm transportation plan" because the gas belongs to Roanoke Gas, which has a finite amount of the fuel.

Previously, Roanoke Gas only offered, at a lower rate, "interruptible service," which means during extreme cold industrial customers with interruptible service could have their gas supply diminished or shut off in order to ensure gas is supplied to residential customers.

Glenn said Roanoke Gas never shut off or reduced gas supplies to industrial customers last winter.

But for large industrial customers with critical processes, the loss of gas would seriously affect production. Glenn said such customers would be interested in the firm transportation or backup service plans. Glenn said Roanoke Gas is the only company in the state offering these types of services.

Interrupted gas sales accounted for $9.3 million in the company's 1993 fiscal year, ended September 30, 1993.

That was 16 percent of the company's total revenues of $57.7 million.

by CNB