Office of the Attorney General
Attorney General Stumbo Challenges Delta’s Requested $5.64 Million Rate Increase

Press Release Date:  Tuesday, August 14, 2007  
Contact Information:  Corey Bellamy, 502-696-5643 Office  

Attorney General Stumbo filed documents today challenging a request by Delta Natural Gas Company’s for a $5.64 million increase in its rates. In a case pending before the Kentucky Public Service Commission, the Attorney General maintains that the company should receive no more than $3.4 million.

“The company has asked for an unjustifiable increase in its rates and we intend to challenge it in order to keep our rates as low as possible,” said Stumbo. “In a time when people are already being pushed to the brink on energy prices, it is essential that my office continue to serve as the consumer’s primary advocate before the Public Service Commission and argue for reasonable rates.”

Delta, along with other natural gas providers, is also requesting Commission approval for ratemaking changes which will unfairly guarantee profits in the future, according to Attorney General Stumbo.

“A utility is a monopoly and its rates should be set in a manner which enables the company an opportunity to earn a reasonable profit – not a guarantee of the profit,” contended Stumbo. “Delta wants to earn a profit regardless of how well it is run, even if it provides poor service. My Office of Rate Intervention will continue to battle against the company’s request for guaranteed profits.”

Delta serves over approximately 38,000 customers in 23 counties.