PONTOTOC — Customers of Pontotoc Gas System will see their bills drop after a Mississippi Public Service Commission review found them too high.
Starting immediately, residential rates will decrease from $9.56 per million metric British thermal units (mmbtu) to $7.14 per mmbtu.
The utility wasn’t intentionally overcharging customers, said Pontotoc Mayor Jeff Stafford. It had adjusted its rates annually according to fluctuations in the gas market. And it had lowered those rates two years in a row based on decreasing prices.
Considering the PSC’s findings, he said, the city will adjust rates monthly to reflect market values as they occur.
The PSC says the city collected an extra $3.3 million.
Stafford said the $3.3 million is a normal amount to be in the bank this time of year. The utility uses the money during the summer months — when it doesn’t sell as much gas — to continue paying its operating expenses.
Northern District Public Service Commissioner Brandon Presley said the city will need to formally ask the PSC to set a temporary rate, then a permanent rate.