RICHMOND — The State Corporation Commission (SCC) has approved a reduced rate increase request by Roanoke Gas Company on the portion of a customer’s bill that covers operating expenses. The SCC’s final order means customers will be receiving refunds, with interest.

Roanoke Gas customers have been paying higher natural gas rates since October 23, 2006. That is when the requested increase was allowed to go into effect on an interim basis pending an SCC decision.

The SCC’s final order allows Roanoke Gas to collect an additional $1.67 million in annual operating revenue for distribution services, an increase of eight percent. For the average residential customer using 75 therms of natural gas a month, his or her bill will increase by $1.72.

Roanoke Gas originally sought a revenue increase that totaled $1.74 million. After a thorough review of the request, the company and SCC staff reached an agreement to lower the request by $78,373.

The company was directed to recalculate all bills issued since October 23, 2006. In cases where the application of the new rates results in a reduced bill for a customer, the company will refund the difference with interest. For most customers, the refund will appear as a credit on an upcoming bill.

Roanoke Gas, a subsidiary of RGC Resources, Inc., serves approximately 60,000 residential, commercial, and industrial customers in the Roanoke and Bluefield areas.

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Case Number PUE-2006-00099