Unitil Asks State For Rate Hike
Unitil Corp. is asking the state to approve a rate increase that would account for $6.7 million in revenue for the company — an 11.5-percent increase — but have a minimal impact on customers due to other charges ending.
The Hampton, N.H., company, which services Northern Worcester County communities such as Fitchburg and Lunenburg, said the increases, which would take effect June 1, 2014 if approved by the Massachusetts Department of Public Utilities, would vary per customer depending on rate class and usage. The rate increase would help the company fund restoration from recent storms as well as improved customer service and reliability initiatives, Unitil said.
The company's transition rate, in place since the industry was deregulated in the late 1990s, is slated to drop off, with the company seeing a $3.1-million, or 5.3-percent, decrease in total revenue by the end of 2014, and Unitil Chairman and CEO Robert G. Schoenberger said the drop in transition charges will mostly offset the proposed rate increases.
Unitil, which provides electric and natural gas service to Northern Worcester County communities, also wants to establish a major storm reserve fund for costs of future storms that would eventually collect $2.8 million each year. Unitil suggested that collections for the fund start Jan. 1, 2015, so it coincides with the expected reduction in the company's transition charge.
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