January will bring 14% rise in gas bills
One spokesman suggested some things people can do to lessen their bills.
By WILLIAM K. ALCORN
VINDICATOR STAFF WRITER
YOUNGSTOWN -- Several hundred thousand Northeast Ohio residential customers of Dominion East Ohio Gas and Columbia Gas of Ohio face double-digit increases in their natural gas bills in January.
Some 42 percent of Dominion's 1.2 million residential customers in Ohio, who buy directly from Dominion, will pay a 14 percent increase over the December rate.
The increase is caused by the gas recovery rate, which will go to $14.88 per 1,000 cubic feet, effective Jan. 5. The December GRC was $13.02 per 1,000 cubic feet, according to Dominion spokesman Jeff Murphy.
Other companies
The 58 percent of Dominion's customers who have contracts with other companies under the Energy Choice program do not pay the gas recovery rate and will not see the same increases, Murphy said.
In dollars and cents, the average monthly bill for Dominion customers will be $355, up $124 from January 2005, Murphy said.
Likewise, Columbia Gas estimated that the average residential bill will be $316 next month, compared with $213 in January 2005, said company spokesman Steve Jablonski.
Columbia provides gas to about 25,000 residential customers in Mahoning, Columbiana and Trumbull counties.
Jablonski said the gas company is by law not permitted to make money on what it costs to recover the gas but can pass on the expenses to its customers.
The short-term causes of the higher GRC, Jablonski said, are the disruption of natural gas production in the Gulf of Mexico caused by hurricanes this summer, combined with the dwindling of surplus caused by the unusually cold weather in December.
Some 20 percent of the gas normally produced in the gulf is not being produced, Murphy said.
However, Jablonski said, the long-term cause is industry concern about the future supply of natural gas. The natural gas that is left is more difficult and more expensive to recover, he said.
Another factor, Murphy said, was the increase in demand at the end of November and beginning of December. Until then, the country had a surplus of gas in storage. The cold weather depleted that, he said.
Surplus natural gas is stored in out-of-production fields and retrieved when needed. Were it not for the surplus, the prices would be even higher, Murphy said.
The gas company representatives suggested some things people can do to lessen their bills.
Jablonski estimated customers could save 10 percent to 15 percent on their bills by setting their thermostats at 65 when they are not home, and at 70 when they are home. The best thing a customer can do is buy a programmable thermostat, he said.
Homeowners should also consider insulation and window replacement, if necessary, and sealing other places where heat is lost.
Murphy said through customer conservation, gas consumption for this billing period is 6 percent to 8 percent below last year at the same time.
Jablonski recommended that customers get on a budget payment plan to spread the cost over the entire year.
Finally, he urged customers who have a problem paying their bill to call Columbia Gas sooner rather than later.
"We'll work out a payment plan and provide information on where help paying bills is available. There is no reason to be disconnected," Jablonski said.
alcorn@vindy.com