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Fort Worth Star-Telegram, Texas, Watchdog Column: As Gas Bills Rise, so Do Complaints

Posted on: Sunday, 5 February 2006, 12:00 CST

By Dave Lieber, Fort Worth Star-Telegram, Texas

Feb. 5--Natural gas stinks on purpose. If there's a leak, you can smell gas before there is a terrible accident. But in recent weeks, several readers have complained about the stink caused by rising natural-gas bills that arrived in the mail. And a few had legitimate billing problems that apparently got lost in the shuffle.

Several readers, like Nancy Andrews of Colleyville, felt what an Atmos spokesman described to me as the "sticker shock" caused by the biggest leap in natural-gas prices in the 100-year history of the company.

"Can you please be our voice in this matter?" she wrote The Watchdog. "Help us find out why we are being victimized and no one seems to care."

June and Hugh Chavern of Fort Worth challenged: "We hope that you will pick up the gauntlet."

The rise in natural-gas prices, first predicted by energy watchers last summer and made worse by the twin pummeling of Hurricanes Katrina and Rita, is no great surprise.

But after picking up that gauntlet and learning about natural gas, my own theory is that Atmos Energy, which has 1.4 million customers in North Texas, was overwhelmed by calls from confused and angry customers. An Atmos spokesman says the company hired more customer service staff and temporary workers.

Spokesman Rand LaVonn describes customers as "animated" in recent weeks. Many callers asked that their meters be checked for accuracy. More than the usual number of customers' bills fell into delinquency, too.

The company is working harder, he says, to provide "superior customer service during this extraordinary time for natural-gas supply and demand."

Problems that might have been easier to solve in calmer times apparently are taking longer to resolve. Ruby and Harvey Ray of Arlington live on a fixed income and say they suffer from health problems. They reported to The Watchdog that their December-to-January gas bill was $3,105 for a home that, according to the tax rolls, measures 1,600 square feet.

The Rays' problem began last month when they notified Atmos of a gas leak in their home. Atmos replaced their leaking meter. A plumber hired by the couple found two other leaks in their home.

When they received their bill, they were flabbergasted.

Harvey Ray wrote to me, "If there was that much gas leakage in our house it would have blown up."

They called Atmos and talked to a supervisor, who said he would call back. The Rays say he never did.

Two days before the bill was due, The Watchdog contacted Atmos. A spokesman promised to look at the Rays' situation.

The end result? A meter reader misread the couple's meter. Their bill was adjusted. The new amount owed is $122.

"We feel great," Ruby Ray said. "The only income we have is our Social Security, and that bill was more than both of our Social Security checks combined. There was no way we could have paid that bill."

LaVonn says Atmos meter readers are 99 percent accurate.

The Watchdog researched other cases last week in which customers believed they were victims of inaccurate meter readings.

Tricia Hemsworth of Colleyville complained after her bill showed that her gas use nearly doubled. "To me," she wrote, "this is not reasonable" -- especially after she installed new energy-friendly windows in her home last year.

When she called to complain, she said the only response she got from customer service was that she needed to pay the bill in full or Atmos would turn off her gas.

Last week, Atmos said her meter was reread and her bill was adjusted.

Chet and Margot Snider of Watauga contacted The Watchdog after Atmos told the couple that the company would reread the meter in January but apparently never did.

Last week, Atmos reported that it checked the meter again, and the couple's bill was adjusted.

"They have poor customer service, and we have had to contact them many times," Chet Snider wrote to me.

Jamie and Mike Pugh of Keller say they tried for weeks to correct a billing error in which they expected a refund but never got it. The problem dated back to October. The Watchdog inquired, and it has been resolved.

The Chaverns of Fort Worth, who challenged me to pick up the gauntlet, were frustrated because their winter bill jumped from around $155 a month last winter to more than $500 last month.

June Chavern wrote that her husband faxed a letter to Atmos, but never heard back.

"It seems we can't find any other way to communicate with them," she wrote. "My husband has spent long waiting times trying to call them. They seem to have effectively cut off communications."

After inquiries by The Watchdog, Atmos replaced their meter and is re-examining their bill, LaVonn says.

LaVonn says much confusion has surrounded Atmos' gas costs in recent weeks as more attention has focused on high gas prices.

Atmos does not make any profit off natural-gas prices, he says. The company buys gas at a wholesale price and passes that price on to consumers without any markup. The company makes its profit on its delivery system. The more gas that travels through its pipelines, the more money the company makes.

Natural-gas prices have doubled in a year, and gas usage spiked in early December when there was cold weather. Now that the weather has warmed, gas usage is down again.

There is good news. Although average winter heating bills will be higher than last year, the increase is likely to be about 30 percent less for the entire winter than originally predicted, LaVonn says. Gas prices have dropped in recent weeks due to warm weather.

The drop in prices could save the average residential customer about $50 in February, Atmos says.

Customer service is not perfect, LaVonn says. "We're making progress and won't be satisfied until calls, bills and operations are back to their normal, efficient level."

How to read your gas bill

Natural gas is measured in units of 1,000 cubic feet -- or Mcf. M is the Roman numeral for 1,000 and cf stands for cubic feet.

1,000 cubic feet of gas would fill a room that's 10.5 feet by 12 feet with an 8-foot ceiling -- the size of a small bedroom.

1 Mcf is enough gas to meet the needs of an average home for four days.

On your monthly bill, Mcf usage is listed on the left side. (The Watchdog's monthly bill in February shows 5.3 Mcf.)

The price of natural gas is listed on the right side next to "Rider GCR," or gas cost recovery. This month's rate is $12.61. (Last month's rate was $15.65.)

If you multiply 5.3 Mcf by $12.61, you get $66.83. That accounts for about 75 percent of the monthly bill. Add other customer charges and taxes listed and you get the final bill.

SOURCE: Atmos Energy and American Gas Association ( www.aga.org)

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Copyright (c) 2006, Fort Worth Star-Telegram, Texas

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Source: Fort Worth Star-Telegram (Fort Worth, Texas)

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