Como gas increase likely coming; objections to be filed with PSC

Published 5:07 pm Thursday, October 6, 2016

Como gas increase likely coming; objections to be filed with PSC

By John Howell
Como residents heard an update, during Tuesday night’s meeting of the mayor and board of aldermen, on the town’s efforts to mitigate a natural gas price increase proposed by gas system owner Mississippi Natural.
In August, Mississippi Natural gave notice to Como gas customers that it is seeking approval from the Mississippi Public Service Commission to increase monthly minimum fees from $2 to $12 and an increase in usage charges from $4.55 to $6.53 per thousand cubic feet.
Mississippi Natural purchased the gas distribution system from the town in 2015 for $179,000.
City Attorney Revonda Griffin said that she had contacted the Mississippi Public Service Commission where a representative told her, “He’s in the process of trying to make sure that (Mississippi Natural) actually used the proper procedures in the increase,” she said.
“He also informed me that Mississippi Natural presented to them that they operated last year in the hole, like $80,000,” Griffin said. “Usually that’s used as justification for increasing the gas rates.”
“If that’s the case, it’s more than likely that it will be increased. It’s not necessarily that it will be increased by the 43 percent they’re proposing, but the Public Service Commission said that they look at the whole company and usually try to make sure that they get a profit of eight and ten percent,” the attorney said.
Griffin said that she would gather more information about the proposed increase.
“I will file an objection to it with the Mississippi Public Service Commission as well,” she said.
“So where does the Public Service Commission get their numbers from?” Mayor Everette Hill asked.
“The companies have to issue all of their financial information to the Mississippi Public Commission to request an increase,” Griffin replied.
“Several citizens have already filed their notices that they object to it. I will file one on behalf of the town,” the attorney continued.
“Some of the citizens went around and got a petition signed,” Mayor Hill said. “Do we put that with the letter?”
“I can add that with my objection to it and just attach it as an exhibit,’ Griffin replied.
Como resident Mike Sumner, who was among citizens attending, asked about propane or alternatives to natural gas.
“Mr. Sumner, I remember back when I first got on the board that they had an ordinance that you couldn’t bring any more tanks into the town, but that was back in 2010,” Alderwoman Teresa Dishmon said. “We can look up that ordinance, but I think it was an ordinance that they had made.”
“I would not only have to look into an ordinance that may prevent it, but I would have to look at the contract with Mississippi Natural,” Griffin said.
“If you can’t get those tanks, you can do it another way: all electric,” Alderwoman Rachel Powell said. “They can’t stop you from doing that if it gets too high.”

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