Warmer temps
melt gas increases:
Lower projected rates from Dominion and Columbia Gas
take heat off ...
Dec 30, 2005 - The Akron Beacon Journal, Ohio
Author(s): Lisa A. Abraham, The Akron Beacon Journal, Ohio
Dec. 30--Natural gas customers bracing themselves for double- digit
increases in their gas bills in January are getting some relief. On
Thursday, Dominion East Ohio and Columbia Gas of Ohio revised their
figures and are now projecting increases over December costs of just 2
percent and 5.7 percent, respectively. The figures apply to customers
who buy their natural gas from Dominion or Columbia as opposed to
another supplier. Customers who have contracts with other suppliers pay
different rates. In filings with the Public Utilities Commission of
Ohio, the utility companies asked to revise their figures because of
falling market prices for natural gas nationally, as well as the recent
spell of warmer-than- normal weather, which is expected to continue into
January.
Earlier this month, both utilities projected major increases for
January. Dominion prices were expected to increase 14 percent, and
Columbia's, about 22 percent. Dominion said Thursday that the gas cost
recovery rate, known as the GCR, effective Jan. 6, will be $13.28 per
thousand cubic feet (mcf), an increase of 26 cents from the December
rate of $13.02. On Dec. 22, the company was projecting the figure would
be $14.88. The rate is adjusted monthly to reflect new market prices.
While the news is better, customers still will be paying 46 percent more
than what they were paying in January 2005, and residential gas bills
are expected to average $322 -- up $90 from the 2005 average of $232 for
January.
For Columbia, the GCR for January will be $13.61 per mcf, an increase
from $12.87 this month, but a drop from the $15.68 that was first
projected, company spokesman Tom Hauck said. The average January bill of
a Columbia customer is expected to be about $279, up 31 percent from the
2005 average of $213, when the company's GCR was $9.89, Hauck said. He
offered no predictions about what February may hold. "There's still 12
weeks left in winter and we will continue to monitor prices. This is a
national situation," Hauck said. By law, utility companies are not
allowed to make a profit on the GCR, which represents the utility's
costs of buying the gas.
The GCR accounts for the majority of a customer's bill. Natural gas
prices remain volatile and sensitive to weather conditions. Most of this
year's increases are the result of continued production disruptions
since Hurricane Katrina, and colder-than-normal December weather. Ryan
Lippe, spokesman for the Office of the Ohio Consumers' Counsel, said the
revised rates were good news for residential customers. "Customers of
all incomes need every break they can get with prices high throughout
the country for natural gas," Lippe said. "The market is very volatile.
There are no promises about where rates will be in February." Lippe said
the key to decreasing gas bills is to use less gas and try to be more
energy efficient.
"No matter how much gas we use, it's going to come at an expensive
price," he said. The office, which is the state's residential utility
advocate, recommends keeping the thermostat at 68 to 70 degrees when
residents are at home and awake, and turning it down five degrees at
night, or if no one is home during the day for long periods. The
practice can reduce gas bills by as much as 10 percent, Lippe said. For
information on how to save money on home energy costs, Lippe said
customers can call his office at 877-PICK OCC (742-5622) or visit the
agency's Web site at www.pickocc.org.
Lisa A. Abraham can be reached at 330-996-3737 or
labraham@thebeaconjournal.com
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