PSNC Energy Customers to See Natural Gas Price Rise 23 Percent
Posted on: Tuesday, 27 September 2005, 21:00 CDT
By Jeff Zimmer, The Herald-Sun, Durham, N.C.
Sep. 26--DURHAM -- PSNC Energy customers will be paying more than ever for natural gas this winter as a result of the N.C. Utilities Commission's unanimous approval Monday of a 23 percent rate increase sought by the utility.
The increase, which becomes effective Saturday, hikes the company's residential rate from $1.27 per therm to $1.56. The new rate represents a historical high for PSNC's residential rates for natural gas and will add about $29 to the average monthly bill, which will now be about $156 during the winter months, according to PSNC information.
The utilities commission's public staff -- which represents consumers -- recommended approval of the requested rate increase. State law prohibits PSNC from earning a profit on the cost-of-gas component of its natural gas rates, so the company's rate increases and decreases are tied to price it pays for gas.
"While we are very concerned about the impact that the increase will have on our customers, PSNC Energy, along with other natural gas utilities, is experiencing unprecedented high natural gas costs from our suppliers," PSNC Energy President Jerry Richardson said in a release.
Indeed, PSNC was one of five natural gas companies serving North Carolinians that won rate increases on Monday, according to Jeff Davis, director of the public staff of the N.C. Utilities Commission's natural gas division.
PSNC serves about 230,000 residential customers in the Triangle, said Angie Townsend, a spokeswoman for the company.
While the company can't make any promises, it is not planning for any more rate increases this winter, she said. "Certainly, the hope is we won't have to go back in for any type of adjustments this winter," Townsend said.
But the weather is the biggest driver of natural gas costs during the winter months, and if it's a cold winter, demand and costs could go up, she noted.
The average residential customer uses about 100 therms per month during the winter season, which at $1.56 a therm translates to a monthly bill of about $156 for the average customer.
South Carolina-based Scana Corp., which acquired PSNC in 2000, recognizes heating bills could become a challenge for some of its customers and will work with them, Townsend said.
"We encourage all our customers to call us if they are having trouble paying their bills," she said. "And sooner rather than later."
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SCG,
Source: The Herald-Sun
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