Natural gas prices are on the rise, but Aquila, which provides service to most of the eastern third of Nebraska, plans to give refunds averaging $4.50 to Lincoln customers.

Aquila had raised its rates due to an increase in transporation costs the utility had to pay to Northern Natural Gas.

Later, the Nebraska Public Service Commission approved a smaller rate hike than Aquila had been charging. In addition, Northern refunded some of the transportation cost it had charged Aquila, which will pass on about $1.2 million to its customers.

The utility plans to credit customers’ bills based on usage, so not everyone will receive payment or the same amount.

If the PSC approves Aquila’s refund plan, customers who had Aquila service between Nov. 1, 2003, and April 30, 2005, will receive the credits around Dec. 1.

In the Omaha area, the refunds will average $6.40, and in the rest of its eastern Nebraska service area, they’ll average about  $9.50.

PSC legal counsel and natural gas department director Laura Demman said those areas get more of their gas from Northern.

Aquila’s Mary Simmons said former customers, if the utility knows their addresses and they’re owed $2 or more, will be mailed checks for their refunds.

The company has issued similar credits in the past, Simmons said, although most of those didn’t require the PSC’s approval. The commission began regulating natural gas in 2003.

Reach Rodd Cayton at 473-7107 or rcayton@journalstar.com.