09-14-1992 Council Packet - Laserfiche WebLink

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► Hffinnegasco A I)i\ isior, of Arkla, Inc. September 4, 1992 rzr\ ,tlj C'^VC- li'lj. G S ili l5rwr' Dorothy Hallin Orono City Clerk Box 66 Crystal Bay, MN 55323 SEP 8 i092 Dear Ms. Hallin: I am writing to inform you that Minnegasco has filed a rate increase request with the Minnesota Public Utilities Commission (MPUC) that would raise a typical residential heating customer ’s bill by about $3.50 per month. This request, Minnegasco ’s first general rate increase request in Minnesota since 1982, would increase overall revenues by about 5.5 percent. The MPUC has approved a 2.63 percent interim rate increase, effective September 1. An official notice of this filing is enclosed. Please share this information with your Mayor and City Council members at your earliest convenience. There are four major factors affecting Minnegasco ’s need for a rate increase: The need to invest continually in the gas distribution system Costs associated with old manufactured gas plants The effects of inflation over several years Growth of conservativ'n programs designed to help customers save energy and money. The rate increase will help us meet the significant increases in our costs of doin^j business, and enable us to continue providing a safe, reliable supply ot natural gas. Although we have been able to improve productivity and manage expenses effectively over the past several years, we’re at a point where those efforts aie no longer enough to offset rising costs. Even with this proposed increase in rates, Minnegasco ’s residential natural gas rates will still be the lowest offered by the five largest natural gas utilities in Minnesota. If you have any questions about this r ; increase request, please don ’t hesitate to contact me at (612)342-4821. Sincerely, Kim Roden, Director Local Government & Community Relations 201 South Sewnth S*nH*t %f. .