Columbia gas prices to increase 33 percent

www.hopewellnews.com By ALEX BRIDGES News Staff Writer

Even as temperatures warm up across much of Virginia, Columbia Gas customers may feel the cold reality of increased prices as they could begin to see their bills jump more than 30 percent. Columbia Gas announced Monday the company's customers would likely see a 33 percent increase in their utility bill starting in March and depending on how much gas they use, consumers will feel that cost increase. Columbia Gas used the example of a current monthly bill of about $106 increasing to more than $140. Bob Innes, a spokesman for Columbia, explained the increase comes as a result of greater usage by its customers during an unusually cold winter. The price Columbia pays for the fuel increased, forcing the company to pass the cost onto the customers. Specifically, reasons for the increase include: • Continued colder weather resulting in heavier than anticipated withdrawals from underground storage facilities. • The sustained cold weather in Columbia Gas’ service territory has been about 10 percent colder than normal for the season. • The time required to develop new drilling of natural gas versus the increased demand is creating added price pressures. • Oil is adding upward pressure on natural gas prices. This is contributed to the Venezuela strike and Middle East uncertainty. • According to the American Gas Association natural gas demand is expected to increase nearly 8.7 percent above last winter’s level. Innes also explained the driving cost comes from the unrest in the Middle East and in Venezuela. "The energy market is being pressed," Innes said. Industries have helped drive up the cost, as well, since many use natural gas for fuel. Ken Schrad, spokesman for the State Corporation Commission, explained the entire energy market has reacted to the problems involving foreign oil. "They had no choice but to pass the cost on to the consumer," Schrad said. Schrad said Columbia files reports with the SCC and looks at both past and future costs of natural gas. He acknowledged the cost of the fuel had spiked following the cold snap Industries often have the capability to switch fuel sources, Schrad said. When oil prices increase, they can revert to natural gas. This switch then raises the demand and the price of natural gas, the SCC official said. Although the company couldn't fully anticipate the weather, Innes said Columbia Gas looks at a 30-year average when determining future prices. Those currently on a budget payment plan with the utility may also be in for a shock: Their March bill may appear about double what it should be. The annual March adjustment is indicating a potential for the monthly budget customer to have their amount double the current amount, according to a Columbia Gas press release. Customers will see their individual account change in their March bills. Columbia Gas has about 47,000 customers participating in the budget payment plan. Schrad said Columbia will work with its customers to allow them to pay their bill to the best of the consumer's ability. Additionally, area social services departments offer assistance through a crisis program; the Salvation Army also helps with Heatshare. Although the company offers the payment plan, "there's an obligation of the customer to contact them" about whether they can receive assistance. Prices may not go down any time soon, Innes said, adding the company cannot predict whether prices will go down.