Natural gas rates are going up for 34-hundred customers in Floyd, Magoffin and Pike counties. The state Public Service Commission today okayed an immediate rate hike requested by Kentucky Frontier Gas. Kentucky Frontier Gas runs ten, small natural gas distribution systems. The increase is designed to create consistent pricing for natural gas throughout the system.
The company says its rate structure has been inconsistent since 2008, when Kentucky Frontier Gas acquired those ten systems. Each of those systems charged a different price, and Kentucky Frontier Gas kept those prices constant. By shifting to a uniform price structure, the company says it should have enough money to maintain the system. Besides paying more for natural gas, the commission also okayed an additional charge of ten-dollars a month, and new fees for meter upgrades and gas line replacement.