SALT LAKE CITY — The state's largest natural gas utility is calling for a rate hike.
Dominion Energy Utah Monday announced the company is asking the state Public Service Commission for a $19.2 million general rate increase. If approved, the hike would increase the typical residential customer's monthly bill by an estimated $3.51 — just under 7 percent — beginning March 1, 2020.
The company said the general-rate request would cover the cost of maintaining its supply system and planned expansion. However, Dominion Energy stated that the rate increase does not include the cost of natural gas the utility purchases for its users, which is passed on to customers without markup.
“We request these rate adjustments to make sure our system is both reliable and safe,” Colleen Larkin Bell, vice president and general manager for Dominion Energy Western Distribution, said in a news release. “These investments in our infrastructure are designed to match customer needs, but we are working hard to control operating costs and deliver natural gas service at rates that are among our nation’s lowest.”
The company stated this year it will spend over $232 million on improving safety and reliability, and to meet customer growth as it upgrades gas distribution facilities. The utility also noted that estimates indicated the company will need to invest the same amount annually over the next few years to ensure safe, reliable service to existing customers, along with meeting the growing demand for natural gas.