PUBLIC SERVICE COMMISSION
OF WEST VIRGINIA
CHARLESTON
CASE NO. 19-0549-G-PC
HOPE GAS, INC., dba
DOMINION ENERGY WEST VIRGINIA
a public utility, Bridgeport, Harrison County.
Petition for consent and approval to enter into an asset conveyance agreement to acquire select facilities from an affiliate in support of regulated utility service.
NOTICE OF FILING
On May 31, 2019, Hope Gas, Inc., doing business as Dominion Energy West Virginia(Hope) filed a duly verified petition for consent, pursuant to W. Va. Code Œ 24-2-12, to acquire from its affiliate, Dominion Gathering & Processing, Inc. (DGP) certain facilities (DPG Facilities), pursuant to the terms of the Asset Conveyance Agreement with DGP, for operation as part of Hopeás regulated gas utility business and for approval of other rate-related relief.
Hope proposes to acquire the DGP Facilities, which serve approximately 9,800 farm tap customers, who are also customers under Hopeás tariff, including Rate Schedule RS, Residential Service, and which facilities also serve natural gas producers. Hope provides natural gas service in the Counties of Barbour, Boone, Braxton, Calhoun, Clay, Doddridge, Gilmer, Harrison, Jackson, Kanawha, Lewis, Lincoln, Logan, Marion, Marshall, Mason, McDowell, Mingo, Monongalia, Nicholas, Pleasants, Preston, Putnam, Raleigh, Randolph, Ritchie, Roane, Taylor, Tucker, Tyler, Upshur, Wetzel, Wirt, Wood and Wyoming, West Virginia.
The application is on file and available for public inspection at the Public Service Commissionás offices, 201 Brooks Street, Charleston, West Virginia.
The purchase price Hope will pay to DGP for the DGP Facilities is zero based on the December 31, 2018, net book value plus the net book value of any adjustments on DGPás books pertaining to the DGP Facilities since the end of 2018; however, there are operation, maintenance and other costs that Hope will incur to operate and maintain the DGP Facilities. Hope currently estimates the annual, going-level of those costs to be approximately $14,245,430 per year (Going Level Costs) and the projected annual incremental revenue requirement to be approximately $18,026,961.
Hope anticipates closing on the acquisition of the DGP Facilities after issuance of a Public Service Commission order granting consent to the acquisition. Hope is not proposing a change in base rates in this case, but has requested assurance from the Commission that Hope will be able to recover in future base rate proceedings the projected, annual incremental revenue requirement pertaining to the estimated, annual reasonable and representative going-level costs. For the DGP Facilities, less certain gross revenues. In this case, Hope asks the Commission to approve a formula to use in future base rate proceedings to calculate the Going Level Costs.
The Commission set a procedural schedule, including a hearing on the Application, if necessary, that will begin at 9:30 a.m. on November 21, 2019, in the Howard M. Cunningham Hearing Room at the Commissionás offices at 201 Brooks Street, Charleston, West Virginia.
Anyone desiring to protest or intervene in this case should file a written protest or request to intervene within thirty (30) days following the date of this publication unless otherwise modified by Commission order. All requests to intervene should briefly state the reason for the request to intervene and comply with the rules on intervention set forth in the Commissionás Rules of Practice and Procedure. Failure to timely protest or intervene can affect your right to protest aspects of this case or participate in future proceedings. All protests and requests to intervene should be addressed to Executive Secretary, Public Service Commission of West Virginia, P.O. Box 8 12, Charleston, West Virginia 25323, with copies to Brien J. Fricke, Senior Counsel, Dominion Energy West Virginia, 925 White Oaks Boulevard, Bridgeport, WV 26330 and Kurt L. Krieger, P.O. Box 1588, Charleston, West Virginia, 25326- 1588.
In the absence of substantial protest received within thirty (30) days of this publication, the Commission may waive formal hearing and grant the petition based on Commission review of the evidence submitted with the application.
Aug 3