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Gas bills could jump between $30 and $45 a month this winter, if rate-hike requests
averaging 33.5 percent filed Friday are approved by the PSC.
The five largest gas utilities in West Virginia are seeking rate increases ranging
from 24 percent to 48 percent.
Billy Jack Gregg, director of the PSC's consumer advocate division, said the filings
overall represent a 33.5 percent increase over current rates. Last year, typical
customers using 13,000 cubic feet of gas a month paid about $103 each month,
while this year they would pay about $138 "if the companies get what they want."
Mountaineer Gas Co., part of Allegheny Energy, is asking for an increase of 31.6
percent, effective November 1. Mountaineer is the largest gas utility in the state, with
206,000 customers.
Dominion Hope, the second-largest gas utility, with 110,000 customers, filed for a
24 percent rate hike.
Dominion Hope, which serves Fairmont, Clarksburg and the central part of the
state, also wants to boost a monthly service charge from $7.90 to to $12.90 a
month. The service charge is always on the bill. It was unclear if the service charge
is part of their 24% request.
Other requests for increases: West Virginia Power Gas Service, also owned by
Allegheny Energy, which is seeking a 34 percent rate hike effective November 1;
Bluefield Gas Co., which is asking for a 48 percent hike effective Nov. 1; and
Equitable Gas Co., which is requesting a 31.5 percent increase effective Feb. 1.
The price of natural gas has been on the rise.
In an unusual twist, Dominion Hope said part of its increase is "anticipated
bad-debt costs" associated with the "substantial increase" in its annual Purchased
Gas Adjustment filing.
It was the first time in memory a utility based part of its bid for an increase on
future bad-debt costs.
Nationwide consumers will pay about 20 percent more to heat their homes with gas
this winter. That figure could be even higher, depending on the weather. If it is a
bad winter like last winter, gas bills will sky-rocket.
Consumers will pay about $70 billion more for natural gas this year than they did in
2002, according to the American Chemistry Council.
Alan Greenspan, chairman of the Federal Reserve Board, warned last month that
high natural gas prices are here to stay.
The impact on consumers, the run-up in natural gas prices is hurting the
manufacturing sector, especially in energy-intensive sectors such as chemicals
and metals.
An analysis by Global Insight said 100,000 jobs will be lost in the manufacturing
sector in the United States unless natural gas prices come down soon.
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