CLEVELAND — Dominion Energy Ohio has submitted a formal request to increase the natural gas rate for its 1.2 million customers statewide.
The company says they have not sought a rate increase from the state of Ohio since 2007.
If approved by the Public Utilities Commission of Ohio (PUCO), the new rate could go into effect by 2025. What does all of this mean? Here's a breakdown of everything you need to know.
"That sounds like a lot, I don't think a lot of people can afford that, I think they're high enough as is," Dominion Energy customer Stephanie Hughes said.
Michael Goldberg is an associate professor at Case Western Reserve University Weatherhead School of Management. He said you can shop around for your energy supplier on the state's Apples to Apples comparison site.
But he said beware of the difference between variable pricing, which will change based on market pricing, or fixed rate which locks you in, as well as the length of the contract.
"Often what will happen if you go to for a fixed rate price at the end of the year it will convert to variable rate usually at a higher rate" Goldberg said.
As he said close eyes are on utility providers and any proposed price hikes following the recent bribery scandal.
"The First Energy scandal reverberates in this community so when we hear about regulators being asked by energy companies to pass on higher rates, I think this catches the public's attention in a different way," Goldberg said.
How much would my bill increase?
According to Dominion Energy, the cost to deliver natural gas to its customers in 2023 "requires an approximately 16% increase in the average monthly residential total bill." In its PUCO filing, Dominion stated that the basic service charge for customers would go from $43.30 per month to $56.34, resulting in a 16% total monthly bill increase from $74.17 to $86.61.
Dominion Energy says the proposed rate increase will not impact the calculation of amounts due for income-eligible customers on the Percentage of Income Payment Plan (PIPP).
Why is Dominion Energy seeking to raise my rate?
"Over the last 16 years, Dominion Energy Ohio has invested more than $4 billion in its system infrastructure, of which roughly $1 billion has yet to be recovered in natural gas distribution rates," the company wrote on its website. "This investment in infrastructure, which includes replacement of pipelines, meters, and other operational assets, has increased our property taxes and other expenses as well. In addition, since our last rate case was filed in 2007, operating and maintenance costs, such as labor, material, and construction expenses, have risen substantially."
Who is impacted by this news?
Dominion Energy has approximately 1.2 million customers in the state of Ohio. The company serves customers in Cuyahoga, Ashtabula, Geauga, Lake, Medina, Portage, Stark, and Summit counties.
What is the timetable for this potential increase?
Dominion Energy Ohio submitted its completed application to PUCO on October 31, then provided additional testimony and case information earlier this month.
In 2024, PUCO will hold public hearings throughout Dominion's service area. At that time, "customers, elected officials and consumer groups will have the opportunity to evaluate and comment on our rate proposals. The rate case process can take from a year or more to complete," the company added.
New gas distribution rates likely would not go into effect until early 2025 and will not affect customer bills during the upcoming winter heating season.