THE VIRGINIAN-PILOT
Copyright (c) 1996, Landmark Communications, Inc.
DATE: Thursday, February 29, 1996 TAG: 9602290268
SECTION: BUSINESS PAGE: D2 EDITION: FINAL
SOURCE: BY DAVE MAYFIELD, STAFF WRITER
LENGTH: Short : 36 lines
Virginia Natural Gas Inc. said Wednesday that it has asked the State Corporation Commission for permission to withdraw a rate-hike request.
The Norfolk-based VNG last September filed the request to boost basic rates by 2.9 percent. It put the increase into effect Oct. 1 on the condition that it would issue refunds if the SCC didn't approve the request.
If the SCC agrees to the withdrawal, VNG said it will credit its customers' future bills for the overcollected amount. The credit would amount to between $1 and $2 a month since Oct. 1 for most residential customers, VNG said.
The utility, a unit of Pittsburgh-based Consolidated Natural Gas Co., wants to withdraw the request because it is concerned that the SCC's staff will seek to lower VNG's allowed profit margin, said Ann Chamberlain, VNG vice president of rates and gas supply.
She pointed out that in an earlier 1994 rate case, VNG's allowed return on equity was cut by the SCC from 11.75 percent to 11.3 percent. She said in rate cases involving other utilities since then, the SCC has further trimmed permitted returns.
VNG wants more time to prepare to argue against cutting its profit margin than would be possible under the schedule for its current rate case, Chamberlain said.
If the commission agrees to allow the request to be withdrawn, she said, VNG may file another rate-hike request that would allow a fuller airing of the issues. by CNB