AG opposes rate hike proposal from Summit Utilities

The regulatory battle over a proposed and substantial rate hike by Summit Utilities continues in the State Capitol even while the colder months quickly approach.

Recently, Attorney General Tim Griffin asked state regulators to “return to the table” to reevaluate a settlement reached with Summit Utilities to seek a 23.7 percent raise in its gas rates. The about-face followed Griffin’s decision to back the compromise earlier that week after the utility company dropped its initial proposal from 30 percent.

Summit Utilities provides natural gas service to around 400,000 Arkansas households and businesses, including within Nashville. The company is seeking the $87.7 million-per-year increase to meet its financial responsibilities following the purchase of CenterPoint Energy’s operations in 2021. The higher rates would also help replace its aging delivery infrastructure and meet higher safety standards, the company said in its filing with the Arkansas Public Service Commission (APSC).

The proposal must be approved by APSC regulators before it can be implemented. The commission is scheduled to decide at a Nov. 24 meeting. If authorized, the increase would increase monthly gas bills by an average of $15 per customer.

Comment filings on the APSC show overwhelming opposition to the proposed rate hike.

On Oct. 11, Griffin issued a letter to the APSC explaining his decision to reverse course on the recent settlement.

“Last week, I believed the savings we secured amounted to the best possible deal we could get for ratepayers at that time. Since then, public input through the legislature has created a more favorable environment for ratepayers, and I see an opportunity to secure even more savings for Arkansans,” said Griffin.

Due to concerns and objections to the proposed rate increase, Griffin is requesting the commission to “reject the settlement and allow us to return to the table.”