Summit Utilities Arkansas Files Rate Case with Arkansas Public Service Commission

Little Rock, Arkansas (January 25, 2024) – On Thursday, Summit Utilities Arkansas (Summit) filed a request for a rate increase with the Arkansas Public Service Commission (APSC). As part of the approved settlement agreement of Summit Utilities’ acquisition of CenterPoint Energy’s assets in Arkansas, the APSC required Summit to file a rate case. 

Below is a letter Summit emailed to its Arkansas residential and small commercial sales customers Thursday afternoon.

Dear valued customer,  

As a longtime member of the Summit Utilities team, I understand the benefit of reliable and safe natural gas in Arkansas that warms homes and keeps businesses running. Summit Utilities Arkansas (Summit) is proud to be the state’s largest gas utility. Our mission is to provide safe, always-on, natural gas for everyday heating, cooking, hot water, and more. It is paramount we are transparent about our need to continue investing in our infrastructure and in the safety and reliability of our systems because our system plays a vital role in supporting the communities we serve. 

As a regulated utility company, our rates are approved by the Arkansas Public Service Commission (APSC). Arkansas law requires regulated utility rates to be reasonable and the service they provide to be safe and reliable, and it requires that utilities be allowed to generate revenues to keep the company in good financial health. A typical rate case lasts 10 months and is a thorough, transparent, and open process. As a condition of Summit Utilities' acquisition of CenterPoint’s assets in Arkansas, the APSC required our company to file a rate case. Today, we made that filing. 

If our request is approved by the APSC, a typical residential customer using 45 Ccf per month will experience a total monthly bill increase of $18.48. Customers will not see a base rate increase on their bill until the end of the ten-month rate case process that was initiated today by Summit. 

If our request is approved by the APSC, a typical small commercial sales customer using 220 Ccf per month will experience a total monthly bill increase of $28.00. Customers will not see a base rate increase on their bill until the end of the ten-month rate case process that was initiated today by Summit. 

Our existing rates have been in place since our acquisition in 2022, and as with most companies across Arkansas, we have 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. 

We are proud to provide service to more than 410,000 Arkansas customers and maintain nearly 14,000 miles of pipeline in the state. 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 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.  

Summit’s new base rates will be approved by the APSC after a thorough process that considers financial and operational data and the perspectives of customers and other stakeholders that intervene in the case. The new rates will not go into effect until later this year. Through the rate case process, we are committed to working closely with the APSC, the Arkansas Attorney General’s Office, and other stakeholders to remain transparent and establish fair rates to continue providing reliable and safe service to your homes and businesses. 

As we progress through our rate case, we are committed to keeping you informed and answering any additional questions you may have. Visit our website, summitutilities.com/ratecase, for the most up-to-date information and a video explaining the rate case process.   

Sincerely, 

Fred Kirkwood 

SVP & Chief Customer Experience Officer