GET READY FOR TREMENDOUS NATURAL GAS INCREASES

(08/09/2008)
WEST VIRGINIAN'S HIT HARD WITH SELL-BACK OF STATE'S ABUNDANT NATURAL GAS

By Bob Weaver

Get ready.

West Virginia's natural gas companies are seeking tremendous rate increases for this winter.

Some customer's bills could increase nearly 50% if the increases are approved by the PSC.

Byron Harris, head of the consumer advocate division of the West Virginia Public Service Commission, says families should take action now to reduce their heating costs before they receive the first bill.

The state's largest provider, Mountaineer Gas, is asking for a 42 percent increase.

If approved, an average customer would pay $229.19 a month. Last winter's bill was an average $116.16.

For houses or businesses that already experience high heating costs, the pain will come down quickly.

Other large increase proposals come from: Equitable Gas, 46 percent; Hope Gas, 43 percent; Consumers Energy, 42 percent; Southern Public Service Co., 29 percent; Bluefield Gas, 28 percent; and Union Oil and Gas, 20 percent.

The consumer advocate says he will ask the PSC to moderate the increases this winter, phasing in the hikes over the next two years.

For low-income residents, the West Virginia Department of Health and Human Resources administers the low income energy assistance program (LIEP).

Those funds are limited - about $18 million this year.

Applicants for assistance must meet income requirements - 130 percent of the poverty level - and must apply December 1-12.

All gas and utilities offer a 20 percent discount from December to April for certain customers. Customers must receive either Supplemental Security Income, WV WORKS or food stamps and be age 60 or older.

Harris said "Weather stripping is an easy, very cheap energy saver."

The state also has a weatherization assistance program through the Governor's Office of Economic Opportunity, with funding from the DHHR's LIEP program, the U.S. Department of Energy and utility partners.

Funding this year totals $2.4 million.