Summit Utilities
Arkansas
Rate Case
At Summit Utilities Arkansas, Inc. (“Summit”), our mission is to deliver safe, always-on natural gas service to Arkansans across the state for essential, everyday needs like home heating, cooking, bathing, and more. To do that, we must operate, maintain, and continuously improve and invest in nearly 14,000 miles of pipeline while providing the exceptional customer experience you expect from your local utility company.
These important services are paid for through our rates. As a regulated utility company, Summit’s rates are approved by the Arkansas Public Service Commission (“APSC”). Arkansas law requires that the rates of regulated utility companies be reasonable; that the service they provide be safe and adequate; and that those utilities be allowed the opportunity to generate revenues which will keep them in good financial health.*
We are sharing this information to notify you that, pursuant to the Settlement Agreement reached in Summit’s acquisition proceeding in 2021, the APSC requires us to file a notice of intent to file a general rate case no later than January 2024. Summit filed such notice on November 20, 2023, and Summit is now seeking approval from the APSC for a rate increase for our Arkansas customers in its Application filed with the APSC on Thursday, January 25, 2024.
A utilities’ rates are designed to recover its expenses and a fair return on its investment. When a utilities’ rates are no longer sufficient, a utility company must request a change in its rates from the APSC in a proceeding known as a “rate case.” A rate case is a transparent process led by the APSC that includes ample opportunity for public input and participation along the way. Through this proceeding, the Commission will review our request and audit our financial information to ultimately determine what is a fair and reasonable rate. The APSC must issue a final decision on Summit’s proposed rate increase within 10 months of Summit’s filing of its Application, which was filed on Thursday, January 25, 2024. Summit’s new rates will be effective shortly after receiving the APSC’s decision.
Summit’s existing rates have been in place since our acquisition in 2022, and as with most companies across Arkansas, Summit has experienced rising costs. Our proposed rate increase more accurately reflects our cost of business and is similar to rate requests other utilities are asking for in Arkansas. It is largely driven by inflation, economic conditions, and capital investments in our system, so we can provide you with safe and reliable gas service that’s always there when you need it.
Summit has made substantial investments in the safety and reliability of our infrastructure, and we are committed to continuing our investment to replace aging infrastructure and ensuring the safety and reliability of our natural gas system in Arkansas, which our customers have come to expect. In 2023, Summit invested more than $155 million in ensuring our company and system stands ready to provide safe, reliable service for its customers. In addition to our investments, we have hired more than 300 Arkansans in various positions throughout our company to provide the best service possible to our customers.
The necessary services and investments funded by Summit’s rates include:
- Efficient response times to customer service calls so we can get questions answered quickly and thoroughly;
- 24-hour, seven days per week, 365 days per year emergency dispatch and response;
- Investments in new, smart technologies to monitor, inspect, and maintain the integrity of our pipeline system so gas is delivered safely and reliably to our customers; and
- A local, well-staffed, and well-trained customer service and operations team that can support customers’ accounts and gas service needs.
While Summit’s filing will increase rates for our Arkansas customers, it is paramount to Summit that we remain competitive and cost-effective throughout our service territory. We will work with the parties in the APSC proceeding to establish fair rates through which we will continue to provide reliable and safe service to homes and businesses. Summit places great importance on our cost-effective, environmentally conscious service, and we will continue to do so. We serve over 400,000 customers in the state of Arkansas and are committed to community giving and supporting local charitable organizations to support the betterment of the people we serve.
We are here to help with questions or concerns you may have and want to keep you fully informed. Call our customer service team if you'd like to speak with a friendly representative. Summit's call center is open Monday – Friday, 7 am – 7 pm, CST by calling 800-992-7552.
The General Staff of the APSC, which operates independently of the Commissioners, will thoroughly and carefully investigate Summit’s proposed rate increase. Other parties to the case, including the Office of the Arkansas Attorney General, and other parties granted intervention in the case, will also investigate the Company’s request.
The parties will file written direct testimony addressing the Company’s proposal.
Several rounds of written rebuttal and surrebuttal testimony by the Company and parties will follow.
Public meetings are held in areas across our service territory.
A public hearing is held to provide the Commission with the evidence and testimony it needs to make an informed decision. During the hearing, evidence and testimony are presented by the utility, the General Staff, and any intervenors. At the beginning of each hearing, members of the public are given the opportunity to express their views.
The Commission studies the entire record, which may consist of thousands of pages, and issues its decision in the form of an Order, which is binding on all parties. The Order contains a summary of the issues and evidence presented in the case, and explains the reasons for the PSC’s decision. The PSC writes a final order that settles all the issues and decides what the utility company can charge customers. The Order will authorize Summit to implement its new rates in the near future.
Hear From Our CEO
Host Roby Brock of Talk Business & Politics met with Summit Utilities CEO Kurt Adams to discuss rate increases for Summit Utilities Arkansas customers.
We appreciate the opportunity to be your natural gas provider and are committed to providing safe and dependable natural gas service. Our proposed rate increase will help us to achieve that goal.
As a regulated utility, our rates are set by the APSC. To learn more about the rate case, the process, and how you can participate, visit the APSC website.
Citations: *https://apsc.arkansas.gov/consumer-services/the-rate-case-process/
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