The regulatory battle over a proposed and substantial rate hike by Summit Utilities continues in the State Capitol even while the colder months quickly approach.
Recently,
Attorney General Tim Griffin asked state regulators to “return to
the table” to reevaluate a settlement reached with Summit Utilities
to seek a 23.7 percent raise in its gas rates. The about-face
followed Griffin’s decision to back the compromise earlier that
week after the utility company dropped its initial proposal from 30
percent.
Summit Utilities
provides natural gas service to around 400,000 Arkansas households
and businesses, including within Nashville. The company is seeking
the $87.7 million-per-year increase to meet its financial
responsibilities following the purchase of CenterPoint Energy’s
operations in 2021. The higher rates would also help replace its
aging delivery infrastructure and meet higher safety standards, the
company said in its filing with the Arkansas Public Service
Commission (APSC).
The proposal must
be approved by APSC regulators before it can be implemented. The
commission is scheduled to decide at a Nov. 24 meeting. If
authorized, the increase would increase monthly gas bills by an
average of $15 per customer.
Comment filings
on the APSC show overwhelming opposition to the proposed rate hike.
On Oct. 11,
Griffin issued a letter to the APSC explaining his decision to
reverse course on the recent settlement.
“Last week, I
believed the savings we secured amounted to the best possible deal we
could get for ratepayers at that time. Since then, public input
through the legislature has created a more favorable environment for
ratepayers, and I see an opportunity to secure even more savings for
Arkansans,” said Griffin.
Due to concerns
and objections to the proposed rate increase, Griffin is requesting
the commission to “reject the settlement and allow us to return to
the table.”