Southwestern Energy Reaches Settlement

Southwestern Energy Co.’s gas distribution unit, Arkansas Western Gas Co. in Fayetteville, has reached a settlement with the staff of Arkansas Public Service Commission and various consumer groups regarding AWG’s request to raise its rates.

According to a July 17 news release, the agreement offers AWG a rate increase of $4.2 million per year, exclusive of costs to be recovered through its purchase gas adjustment clause, or PGA.

The company would also be entitled to recover certain non-gas costs totaling $ 2.9 million through its PGA over a two-year period.

AWG’s request is still pending before the APSC and is subject to its approval. If approved, the rate increase is expected to be effective in September 2003. AWG’s last rate increase became effective in December 1996.

The gas company, which serves about 140,000 customers in northern Arkansas, originally requested a rate increase of $11 million.