The state Public Service Commission on Thursday approved a rate increase for Delta Natural Gas, which serves Central and Eastern Kentucky.
The revenue increase will amount to $3.3 million, or 6.5 percent, for Delta over the course of a year, the PSC said in a statement. That is about $2.1 million less than Delta had requested.
As part of that revenue increase, residential natural gas customers will pay $20.70 monthly in fixed charges, up from $15.30.
Fixed charges cover the costs of offering service. They're the same for all customers regardless of how much gas is used.
The volume-based delivery charge, which fluctuates with gas use, will increase to $4.27 per thousand cubic feet of gas from $4.16 per thousand cubic feet.
The bulk of natural gas bills are the costs of the gas itself, which utilities are required by law to pass along at the same amount they pay.
The PSC rejected Delta's request to charge customers to recover a loss of $867,900 related to a gas leak from an underground storage facility in Eastern Kentucky in 2006 and 2007.
The PSC ruled that Delta had not sought the proper accounting procedure and has now waited too long since the time the costs were incurred.
Delta serves nearly 40,000 customers in 23 counties in a service territory that is an area roughly south of Interstate 64 and east of Interstate 75.