Aquila customers will pay less for natural gas starting in September, even though the company is increasing its rates by 3.58 percent.
The Minnesota Public Utilities Commission recently approved the increase sought by Aquila to pay for system improvements. But the 3.58 percent rate increase it approved is less than the 3.82 interim increase the commission approved in October 2000.
Aquila will refund customers the difference between the interim and final approved rates plus interest.
The permanent increase is Aquila's first since 1992 and applies to all 190,000 of the company's residential, commercial and industrial customers. The company had initially sought a 7.26 percent increase.
The 3.58 percent rate increase translates into a $5.74 million increase in annual revenues for Aquila's network operations in Minnesota.
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According to information from Aquila, a typical residential customer using approximately 1,030 therms (one therm equals approximately 100 cubic feet) of natural gas a year will pay an extra $1.75 a month or $21 a year.
A typical business using 7,070 therms a year will pay an extra $10.58 a month or $127 annually.
