Gas Re-regulation Gaining Steam

Reported By: Blair Meeks
Web Editor: Michael King
Last Modified: 2/3/2006 8:19:36 AM

 
Consumers’ well-noted struggle to pay soaring natural gas bills has reached the state Legislature and now, Georgia lawmakers are asking for help.

A bill designed to re-regulate the gas business in Georgia would take an incredible push from the public to get state leaders to budge, according to Representative David Lucas (D-Macon), the bill’s sponsor, .

“I think we were all duped in that we were told this would bring in competition and lower consumers’ gas bills,” Rep. Lucas said.

Even though Lucas voted for deregulation more than six years ago, he has introduced a new plan to re-regulate prices.

“We got to admit we made a mistake, try to correct that mistake because people are suffering,” Rep. Lucas said.

He admitted to a crowd of senior citizens on Thursday night that his plan has no chance unless it garners a sizeable groundswell of support.

“If they hear from you then they know there's a problem and it's an election year,” Rep. Lucas said.

Gas industry experts say the high bills are due to hurricanes and increased global demand. To them, blaming deregulation is misguided.

“There is no evidence to support the fact that re-regulation would work, and that consumers would be better off. In fact, consumers would be worse off,” said Simone McKinney of gas marketer Scana Energy.

They say competition drives prices down and allows consumers choices, such as locked-in rates, to keep from taking a hit during price spikes.

Several states around Georgia are still regulated, including North and South Carolina, Florida and Tennessee.

Gas companies say Georgia's average natural gas price is right in the middle of those states.

 
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