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Public Hearing in Docket No. G-40 Sub 145
Annual Review of Gas Costs for Frontier Natural Gas
Tuesday, March 6, 2018, 10:00 a.m.
Commission Hearing Room 2115
Dobbs Building, 430 North Salisbury, Raleigh

Frontier Natural Gas Company, LLC (Frontier), is a subsidiary of Gas Natural Inc., and is headquartered in Elkin, North Carolina.  The Frontier natural gas system is physically comprised of about 139 miles of transmission line that take gas off the Transco pipeline in two spots, one located in Warren County and the other located in Rowan County.

Frontier is a local distribution company that transports and sells natural gas in Yadkin, Surry, Wilkes, Warren, Watauga and Ashe Counties. Frontier serves about 3,600 customers in and near Wilkesboro, North Wilkesboro, Elkin, Dobson, Mt. Airy, Yadkinville, Hays, Roaring River, Manson, Warrenton, Norlina, Boone, Jefferson, and West Jefferson.

Under State law [G.S. 62-133], natural gas local distribution companies earn a return on the investments they have made in their distribution networks in order to serve customers. They are also allowed to charge customers (without adding a margin or earning a return) for their prudently incurred expenses, including the wholesale cost of natural gas and pipeline transportation charges.

State Law G.S. 62-133.4(c) requires each gas distribution company to file annually with the Commission information that lets the Commission compare its wholesale gas and gas transportation costs with the gas revenues that it has collected from its customers during the 12-month period. The Commission decides whether the gas distributor was prudent as it incurred its gas costs. If prudently incurred gas costs are greater or less than the collected gas revenues, the Commission can order changes to customer rates.

Commission Rule R1-17(k)(6)(a) requires Frontier to file by December 1 each year information showing the Company’s actual gas costs for the year ending September 30, the amount of gas it purchased, the amount of gas it sold, and other information, along with expert witness testimony.  Frontier filed the required information on December 1, 2017.

The Public Staff of the North Carolina Utilities Commission is investigating this matter on behalf of the using and consuming public. The Commission is holding a hearing on March 6, 2018, to receive testimony on this matter. At the beginning of the hearing, at 10:00 a.m., Frontier customers will have an opportunity to provide testimony.