CenterPoint plans 5 percent rate increase

CenterPoint Energy on Friday proposed increasing residential natural gas rates by 5 percent to help pay for pipeline improvements aimed at maintaining a safe and reliable system, the utility said.

If the Minnesota Public Utilities Commission approves, an interim rate increase of 4.9 percent would begin Oct. 1 and last one year as the commission considers whether to approve a permanent increase of 5 percent. CenterPoint said the average residential customer's bill would go up by about $4 a month.

CenterPoint would achieve the rate increase by hiking the basic charge from $8 to $15 a month. To partially compensate for that increase, the delivery charge for gas would go down from about 17 cents per therm to about 13 cents per therm, the utility said.

The utility says wholesale natural gas prices have stayed reasonably low over the past year, saving customers money.

CenterPoint is Minnesota's largest natural gas utility.