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Virginia Natural Gas Files Rate Request

For the second time in 20 years, Virginia Natural Gas filed a request with the Virginia State Corporation Commission (VSCC) Friday, March 31, 2017, to increase rates for natural gas delivery service.   

The request will allow Virginia Natural Gas to continue to meet its commitment of providing safe and reliable natural gas service to its more than 293,000 customers throughout 15 localities in southeastern Virginia. This rate increase will allow Virginia Natural Gas to recover the costs associated with continuing significant capital investment in the areas of safety and compliance, customer growth, strategic system extensions and mandated public improvements. In addition, it allows the company to address the costs of meeting increasingly stringent state and federal safety and operational compliance standards. Virginia Natural Gas plans to grow its workforce to meet these challenges and focus on training and development to help prepare its workforce for the future. 

Beginning September 1, 2017, a typical residential customer can expect an increase in their monthly natural gas bill by an average of $8. These rate changes are subject to refund after final approval by the VSCC.

No costs associated with the recent purchase of Virginia Natural Gas by Southern Company will be charged to our customers.

Summary of Virginia Natural Gas Rate Case

  • Virginia Natural Gas has filed for its second rate case in the past 20 years
  • Virginia Natural Gas’ key drivers in seeking an increase in revenues are: 
    • Customer Growth;
    • Strategic System Extensions;
    • Safety and Compliance;
    • Mandated Public Improvements
  • The rate increase allows Virginia Natural Gas to address the costs of meeting increasingly stringent state and federal safety and operational compliance standards. 
  • Virginia Natural Gas has a robust plan to grow our workforce and focus on training and development to help prepare for the future.
  • The total request for additional rate base revenues is approximately $31 million.  
    • Beginning Sept. 1, 2017, a typical residential customer will see an average increase of $8 per month. 
    • Overall, Virginia Natural Gas’ rates have increased less than the rate of inflation since 2012.
  • Since the 2011 rate case, Virginia Natural Gas has been through a corporate acquisition with AGL Resources, now Southern Company Gas, being acquired by Southern Company.
    • No costs associated with the acquisition of Virginia Natural Gas by either AGLR or Southern Company is included in this rate request.
    • No costs associated with integrating Virginia Natural Gas into Southern Company or Southern Company Gas is included in the current rate request.