Compromise reached in PNG case

by Cat Urbigkit

The Wyoming Office of Consumer Advocate and Pinedale Natural Gas have entered into a “Stipulation and Agreement” in order to resolve the dispute over PNG’s alleged over earning in its natural gas commodity pass-on case.

The agreement has no effect on PNG’s recently filed general rate case, which will proceed before the Public Service Commission in the coming months.

Pinedale Natural Gas’ request to pass on a wholesale gas increase of $6.40 per decatherm to its customers was slated for public hearing before the PSC this week. Before the hearing began, the Office of Consumer Advocate and PNG signed the agreement, which was approved by the PSC later in the day on Tuesday.

The result of the agreement is this: PNG will reduce its non-gas rates by 40 cents per decatherm beginning with usage during the current billing cycle. That reduction will continue month-to-month until the PSC either approves a new base rate reflecting the lower rate or until the cumulative total reduction in revenues for the company totals $33,000.

The agreement notes, “The amount of the reduction reflects a compromise of the parties’ positions and does not reflect a particular concession by either party to any particular issue.”