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Natural Gas Bills to Rise By 14 Percent

Posted on: Thursday, 29 September 2005, 18:01 CDT

By John Dodge, The Olympian, Olympia, Wash.

Sep. 29--A double-digit rate increase for all of Puget Sound Energy's natural gas customers takes effect Saturday, pushing gas costs to an all-time high.

For the typical residential customer, a monthly bill will climb about 14 percent, or $11.31 a month, to a total of about $96.50. That compares with an average monthly bill of $52.57 three years ago.

Commercial and industrial customers will see a 15.4 percent increase in their natural gas bills.

The Washington Utilities and Transportation Commission approved the increases Wednesday. They are designed to recover higher wholesale costs the utility is paying for natural gas.

"Natural gas rates for Puget Sound Energy customers have never been higher," said Jim Lazar, an Olympia energy economist.

The record high price wasn't lost Wednesday on South Sound businesses and nonprofit enterprises that rely heavily on natural gas.

The Laundry owner Brent Reece, who has stores in Lacey and Olympia, said he would probably have to bump up the cost of his coin- operated washing machines by 25 cents to recoup the rate increase.

His Lacey outlet features natural gas dryers and natural gas-fired water heaters.

"It's huge," Reece said of the utility's steady string of natural gas rate increases. "Our customers are going to go ballistic."

Ramblin Jack's general manager Adam Adrian said the increase comes just a month before his company plans to open a new restaurant in Lacey, which features gas heat and, as with most restaurants, gas ovens and stoves.

As with any other higher cost of doing business, about the only option a restaurant manager has is to increase the price of meals, he said.

Providence St. Peter Hospital, a major user of natural gas, had budgeted this year for a 5 percent to 6 percent rate increase, said Geoffrey Glass, director of hospital facility and technology services.

But even before Wednesday's announcement, the hospital was paying 15 percent to 40 percent more for natural gas than a year ago.

The rate increase will prompt hospital managers to look at more energy conservation investments, although the hospital already has aggressively gone after most cost-effective energy-saving measures.

It also means the hospital will have to defer capital improvements, he said.

The rate increase coincides with a seasonal outlook released Wednesday by the National Gas Supply Association, predicting higher natural gas heating bills across the nation this winter.

Gas supply disruptions from hurricanes Katrina and Rita are expected to stretch natural gas supplies already stressed by increased customer demand and economic growth, the gas supply group said in a prepared statement.

THE BILL: The average monthly natural gas bill for Puget Sound Energy's residential customers has grown in recent years:

--Nov. 2002: $52.57

--Oct. 2003: $70.01

--Oct. 2004: $82.02

--Oct. 2005: $96.48

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Copyright (c) 2005, The Olympian, Olympia, Wash.

Distributed by Knight Ridder/Tribune Business News.

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PSD,

Source: The Olympian, Olympia, Wash.

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