The SCC exercises regulatory authority over the natural gas operations of Roanoke Gas.  Such regulation encompasses terms, conditions and rates to be charged to customers for natural gas service, safety standards, service extension and depreciation.

In response to continued inflationary pressures, the Company filed an expedited rate application on December 2, 2025 with the SCC seeking to increase its non-gas base rates by $4.3 million annually.  The SCC permitted the Company to implement its new rates on an interim basis for service rendered on or after January 1, 2026, subject to refund.  On July 1, 2026, the Company reached a settlement with the SCC Staff on all outstanding issues in the case.  Under the terms of the settlement, the Company agreed to an annual increase in revenues of $3.85 million.  The Company began billing the stipulated rates effective August 1, 2026, as approved by the Hearing Examiner.  The Company has recorded a provision for refund, including interest, associated with customer billings for the difference between the interim rates and the stipulated rates.  The terms of the settlement stipulate that updates to future SAVE and RNG Riders will utilize a capital structure containing a 59% equity ratio and a 9.9% return on equity.  Based on the Commission's procedural schedule, the Company expects final resolution of the case in the first quarter of fiscal 2027. 

On May 29, 2026, Roanoke Gas filed for approval of an updated RNG Rider to become effective October 1, 2026.  The RNG Rider recovers costs associated with the RNG facility to produce renewable natural gas that was approved by the SCC in 2022. The revenue requirement associated with the RNG Rider is $1.76 million.  The impact to customers is affected by the under-recovered costs during the prior fiscal year, the sale of environmental credits and the over crediting of customers for RIN sales, resulting in a net impact to customers of approximately $708,000.  The Company expects final resolution from the SCC in September 2026.

On June 30, 2026, Roanoke Gas filed for approval of an updated annual SAVE Rider to become effective October 1, 2026.  The proposed SAVE Rider revenue requirement of $3.79 million is designed to recover the costs associated with prior years’ SAVE eligible investments that occurred under the current SAVE Plan and an estimated $9.26 million of SAVE eligible investment during fiscal 2027.  The revenue requirement also included an adjustment for under-recovered costs incurred during the prior year.  The Company expects final resolution from the SCC in September 2026.