[Back to Update List]
Yankee Gas Services Company
P.O. Box 270
Hartford, CT 06141-0270
Yankee Gas Files Request to Raise Rates 7.2 Percent
Sandy St. Pierre
BERLIN, Conn., July 2, 2004 (NYSE: NU) –
Yankee Gas Services Company, Connecticut’s largest natural gas distribution company, has filed a request with the Connecticut Department of Public Utility Control (DPUC) for a 7.20 percent increase in rates. The $26.5 million rate relief request, if granted, would take effect January 1, 2005.
“We have a solid track record delivering superior service to our customers, as measured by our Service Quality Performance plan,” said Dennis E. Welch, president and chief operating officer of Yankee Gas. “Year after year, Yankee has met or exceeded all of the service benchmarks set by the DPUC, giving comfort and assurance to our customers that we are there when they need us, responding to their needs. We take pride in our commitment to operating and maintaining a safe, reliable distribution system for our customers and for our employees. The rate relief we are requesting ensures our ability to continue to deliver the same high level of service our growing customer base demands from us.”
Using the Consumer Price Index-All Urban as a measure of inflation, Yankee’s rates have declined approximately 22.4 percent since 1993. And, in 2002, Yankee’s most recent rate application resulted in a $4 million reduction in rates. While Yankee’s allowed return on equity (ROE) is 11 percent, as approved by the DPUC in 2002, the company’s earned ROE for the 12 months ending December 31, 2003 was only about half of that.
“The failure of current rates to cover Yankee’s operating costs will continue to erode earnings and impair our ability to attract the capital we need to invest in our system to effectively continue to serve our customers,” added Welch.
The rate request is now before the DPUC for review; if approved, the new rates are expected to take effect January 1, 2005.
Yankee Gas Services Company (Yankee Gas) is Connecticut’s largest natural gas distribution company, delivering safe, reliable natural gas service to approximately 193,000 customers in 71 cities and towns. Yankee Gas is expanding Connecticut’s energy options and increasing customer choice by extending the availability of clean, efficient natural gas throughout the state. Yankee Gas is part of the Northeast Utilities System (NYSE: NU). For more information, please visit
[Back to Top]