Natural gas flat-fee plan draws a crowd to hearing

By HOLLY SCHOENSTEIN

The average residential gas bill would rise 4 percent if the new fee is approved.

YOUNGSTOWN — The Public Utilities Commission of Ohio’s scheduling of a weekday afternoon public hearing Monday did not stop an estimated 200 area residents from packing City Hall council chambers.

The hearing was scheduled in response to Dominion East Ohio’s proposal to move from a usage-based fee to a flat fee of $17.50 per month per bill for the distribution of natural gas, regardless of consumers’ consumption.

A small, variable distribution fee, ranging from 36 cents to $1.24 per thousand cubic feet of gas, would still be added for distribution.

Dominion charges customers in Northeast Ohio $5.70 per month in administrative fees, such as meter reading and billing. The company also charges a distribution fee that varies per usage to cover the cost of delivering gas. If PUCO approves the request, the average residential gas bill will increase by about 4 percent (about $4.50).

Despite the crowded chambers, dozens of Dominion customers testified about how the rate change will affect their personal finances.

Among their concerns were the difficulties they already face paying utility bills, in conjunction with increases in other expenses, including gasoline, groceries and inflation in general. Some residents also said the rate increase, which would result in low-usage consumers subsidizing high-usage consumers, would not encourage energy conservation.

“What we have been faced with is a runaway cost system,” Charles Vandenberg of Austintown said, referring to Dominion’s proposal.

Other residents expressed disappointment over their experiences as Dominion customers.

As a suggestion about how the gas company could avoid passing rate increases to its residential customers, Ruth Nabb of Youngstown suggested that Dominion reduce its profits.

Despite the dozens of consumers who testified, some felt that their statements will not have the power to stop the increase.

Eula Winphrie of Youngstown said she came to the hearing because she believes it is “ridiculous” and left the meeting without satisfaction. Although she did not speak at the hearing, she believed others’ comments went “in one ear and out the other.”

Sworn testimony from individuals at the hearings will become part of the official case and will be considered by PUCO as it makes its decision on whether to grant Dominion’s request.

The Ohio Consumers’ Counsel, an advocate for residential utility customers, has said that the gas rate increase is not warranted because a revenue increase is not necessary. Furthermore, the OCC has agreed that the change would hurt customers who are trying to conserve energy and would result in low-use customers subsidizing high-use customers.

Dominion proposed a $75 million annual revenue increase in August 2007. In addition, it is seeking a 25-year Pipeline Infrastructure Replacement plan, which it has estimated may cost $2.5 billion, that would be paid by residential, commercial and industrial customers.

It also has proposed to spend $126.3 million to retrofit automated meter reading devices on all 1.3 million gas meters in its territory.

Additional public hearings have been scheduled in Lima, Akron, Canton, Cleveland, Geneva and Marietta.