October 17, 2008

Dominion Hope Files Request for Base Rate Increase

Dominion Hope, a subsidiary of Dominion, has filed a request with the West Virginia Public Service Commission for an increase in the base rates it charges for natural gas service that would increase the average residential bill by about $21 a month.

Dominion expects the commission to hold public hearings in the near future, and then issue a decision that would affect bills in summer 2009.

The company also announced that the commission has authorized it to decrease its purchased gas rate by $1.79 per thousand cubic feet (mcf), effective November 1, 2008, lowering the average residential bill about $11 per month.

Natural gas bills are comprised of two parts, the base rates that pay for delivery of natural gas, and the purchased gas cost rate that covers the cost of natural gas purchased for the customer.

The lower purchased gas rate would reduce the residential customer's total rate from about $16.50 to $14.71 per mcf. This would reduce the monthly bill of the average residential customer using six mcf per month from $108 to $97.