Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: FRIDAY, June 15, 1990                   TAG: 9006150107
SECTION: BUSINESS                    PAGE: A-11   EDITION: METRO 
SOURCE: 
DATELINE:                                 LENGTH: Short

SCC URGED TO CUT RISE IN GAS RATE/ EXAMINER WOULD HALVE REQUEST BY ROANOKE GAS

If the SCC commissioners accept the recommendation of Howard P. Anderson Jr., the examiner, Roanoke Gas will be allowed a rate increase of about $507,000.

Since the utility has been collecting the full amount since August, subject to refund pending a final decision, Anderson's recommendation would reduce the present rate by 41 cents a month for the average customer. The interim rate increase of $2.14 a month was added to the $77.74 average monthly gas bill.

Frank Farmer, senior vice president of Roanoke Gas, said the company is disappointed by the recommendation although the SCC staff had proposed $20,000 less than Anderson's recommendation.

"We asked for what we thought we needed," he said.

If the SCC commissioners approve Anderson's recommendation, the company must refund to its approximately 38,000 customers the difference between the approved rate and the higher interim rate.

The utility asked in August for a 2.7 percent increase, its first request for higher rates in four years. E.C. Dunbar, president, said at that time that the cost of living has increased almost 4 percent annually for three years and costs of payroll, supplies and health insurance have risen, as well. - Staff report