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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