Summit Utility customers to see a more than 23% rate increase

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by Michael Tilley ([email protected]) ago 42 views 

The Arkansas Public Service Commission (APSC) on Thursday (Nov. 21) approved a more than 23% average increase in natural gas residential energy bills for Summit Utility customers. The Colorado-based utility has between 415,000 and 420,000 Arkansas customers.

Summit Utilities Arkansas filed a rate increase request with the APSC Jan. 25. The initial request sought to increase the monthly bill for the typical residential customer by almost 30%. The request also sought to raise Summit’s authorized revenue in Arkansas from $169.474 million to $279.949 million, an increase of 60.53%.

That initial request was challenged by the office of Arkansas Attorney General Tim Griffin, the Arkansas Gas Consumers, the Hospitals and Higher Education Group, and the APSC staff. The challenge resulted in several months of negotiations between the parties and APSC staff.

The agreement announced Thursday lowered Summit’s request for an 11% return on equity to 9.85%. Part of the order also requires Summit to temporarily lower the cost of winter gas – a component of a monthly bill – by 17% related to recovery costs associated with a 2021 winter storm in Arkansas. The decreased recovery will end in April 2025.

The APSC requires Summit to adjust its cost of gas on Nov. 1 and April 1 of each year. The cost of gas is a pass-through cost not directly associated with the rate case approved by the APSC.

“As we hoped, we were able to secure a better result, and I appreciate the Public Service Commission listening to our concerns and altering Summit’s proposed settlement, resulting in an outcome more favorable to Arkansas ratepayers,” noted a statement from Attorney General Griffin.

According to the agreement, the average residential bill will increase $15.43 a month, an average monthly increase of 23.42%. Following are average winter bill amounts listed in the APSC order.

December 2024: $134.46
January 2025: $174.06
February 2025: $164.14
March 2025: $127.32

“We appreciate the hard work of Attorney General Tim Griffin, APSC general staff, Arkansas Gas Consumers, Inc., and the Hospitals and Higher Education Group, who represented the interests of Arkansas customers,” Fred Kirkwood, chief customer experience officer at Summit, said in a statement. “These new rates mean we can continue delivering the safe and reliable natural gas our customers count on.”

Summit said the agreement followed “Summit’s investment of over $300 million in Arkansas to upgrade infrastructure, enhance safety, boost job growth, and support business needs.”

Summit Utilities acquired Fort Smith-based AOG in early 2017, and owns natural gas distribution and transmission subsidiaries in Arkansas, Colorado, Maine, Missouri, Oklahoma, and Texas. In early 2022, Summit completed the acquisition of gas distribution assets of Houston-based CenterPoint Energy Inc. that provide energy to 525,000 customers in Oklahoma, Arkansas and Texas, and include about 17,000 miles of gas main pipeline in the three states.

Overall, Summit entities have approximately 625,000 customers and operate more than 23,400 miles of pipeline. AOG sells natural gas to approximately 60,000 residential, commercial, industrial, and agricultural customers in Arkansas and Oklahoma.