Aquila - Gas Co. rate increaseAquila
May 30, 2002
Jeanne Schneider
City of Dubuque
50 W 13th Street
Dubuque, IA 52001
Dear Ms. Schneider:
In keeping with our commitment to inform you about important develoPments in the natural gas
service we provide, I wanted you to be aware of a rate increase request we will file on June 3, 2002,
with the Iowa Utilities Board that affects residents in your city.
This is the first rate increase requested by the company in Iowa since 1992. Since then our operating
expenses have grown less than the rate of infiation. However, like most businesses, we eventually
must adjust prices to recover the increased cost of doing business.
The primary reasons for this rate request are to recover significant capital investments to increase
reliability and safety in the gas distribution system and enhance customer service systems to create
future cost efficiencies. Our customer service systems include 24-hour-a-day and seven-day-a-week
customer service availability, a new customer billing and information system, and additional
teChnology advancements to improve communications and service to customers.
under the proposal a residential customer using 900 therms of natural gas per year, or approximately
75 therms per month, would see an increase of approximately $4.59 per month or $55 annually. A
commercial/industrial customer using 3,450 therms of natural gas per year, or approximately 290
therms per month, would see an increase of approximately $! 3.29 per month or $159 annually. The
total proposed increase equates to a $9.29 million, or 5.84 percent, increase in annual revenue.
The required review and approval by the IUB may take approximately 10 months to complete. New
interim rates are proposed to become effective July 3, 2002. If final rates are lower than the interim
rates, the difference will be refunded to customers, with interest. If final rates are higher than the
interim rates, they will not be retroactive and will become effective following the IUB decision.
Our employees have always taken great pride in providing safe, reliable service in our state, and we
intend to continue that performance in the furore. Please share this information with other officials in
your community. If you have questions concerning the rate filing or any other areas of our operations,
please contact me at (641) 792-0640.
Sincerely,
Marvin Oppedal
Director, Community Relations