Drew Dixon
A Panhandle natural gas company has received approval from the state to increase rates for the utility.
St. Joe Natural Gas Co. Inc. (SJNG) originally petitioned the Public Service Commission (PSC) to raise its rates in May. But the regulatory board approved the rate hike this week, a PSC news release said.
SJNG serves the small Gulf Coast town of Port St. Joe just south of Panama City in the Panhandle. The PSC held public hearings and initially approved rate and revenue increases, but that was delayed after customer challenges.
The PSC revisited the issue in December and requested additional data and review of documentation provided by the utility. The panel approved a $936,224 increase in operating revenues each year while increasing the utility’s annual operating costs and revenues to a total $2.5 million. That figure is actually lower than what the company originally requested.
Part of the reason for the rate hike request was due to Hurricane Michael, which struck the area in 2018. St. Joe Natural Gas officials also argued operating costs have increased in the past decade.
The “approval will increase the monthly bill for SJNG’s average residential customer … from the current interim rate of $77.68 to $82.51. This estimated residential bill includes the cost to provide service, energy conservation cost recovery factors, and the cost of purchased gas,” the news release said.
While the rate increase is being enacted, they are not absolute in the initial phases. The PSC provides time for anyone with any additional concerns to air complaints. The “protest period” allows for any customer seeking refunds to file for those refunds. If no one issues any protests, the rates become permanent.
Port St. Joe is a small town right on the Gulf of Mexico and SJNG has about 3,200 residential and commercial customers in both Gulf and Bay counties.
