Approved return on equity: 9.85%
Approved revenue requirement increase: $9.25 million
Approved residential rate increase: 8.7%
Approved total rate increase: 6.35%
Requested return on equity: 10.20%
Requested revenue requirement increase: $15.1 million
Requested residential rate increase: 8.2%
Requested total rate increase: 10.7%
Time period: Jan. 1 – Dec. 31, 2022
Here are a few things we think are important for you to know about this case if you are a MGU customer:
- MGU said the need for this rate case is driven primarily by “infrastructure investment to maintain reliability and safety.” The biggest driver of the revenue increase is a $25.6 million increase in the rate base (including depreciation and property taxes from capital investments made since the last rate case), offset by decreases in the utility’s sales forecast and operating expenses.
- MGU last filed a rate case in 2015 (U-17880). After a settlement agreement, it received $3.4 million for an annual revenue increase, down from $6.67 million initially requested, and a return on equity of 9.9%.