Common use of REVENUE AND RATE CHANGES Clause in Contracts

REVENUE AND RATE CHANGES. 2.1 This Settlement Agreement provides for several changes to Unitil’s distribution rates. The first such change shall occur on August 1, 2022, effective on a service- rendered basis. It provides for an increase in Unitil’s distribution revenues of $6,091,477 to recover the Company’s distribution revenue deficiency agreed to by the Settling Parties. The schedules supporting this increase and Unitil’s overall annual revenue requirement and incorporating the provisions of this Settlement Agreement are provided in Settlement Attachment 1 and Settlement Attachment 10. This reflects a net increase of $3,492,394 from temporary rates in effect since October 1, 2021, which reflected an increase of $2,599,083 as authorized by the Commission in Order No. 26,529 (September 30, 2021). The permanent rates increase of $6,091,477 represents an increase of 9.1 percent of total revenues or 15.5 percent of distribution revenues. Of this increase, $6,322,954 will be collected within permanent distribution rates and a decrease of $231,477 will be reflected in the Cost of Gas Clause (“COGC”) as a component of indirect gas costs.1 The initial rate change shall be followed by one additional Step Adjustment to rates on September 1, 2022, also effective on a service-rendered basis. In light of this Step Adjustment, the Company shall not file a distribution rate case with the Commission before January 1, 2024. 2.2 The September 1, 2022 Step Adjustment shall cover the additional revenue requirement resulting from changes in Net Plant in Service associated with non-growth investments for the period January 1, 2021, through December 31, 2021, as listed and described on Settlement Attachment 2. An illustrative revenue requirement for the September 1, 2022 step adjustment is provided in Settlement Attachment 2. The Settling Parties agree that the Company may recover revenues associated with the full Rate Year (August 1, 2022 – July 31, 2023) over the eleven-month period beginning September 1, 2022 and ending July 31, 2023.