Daily Mail Staff
Thursday September 28, 2000; 02:15 PM
While the rest of the country heads into what energy officials are calling the worst energy crisis since the 1970s, the only inconvenience West Virginians will suffer will be higher prices at the gas pump.
But even that may change, according to Greg Beheller, director of public affairs for AAA Southern West Virginia.
"From what we understand, President Clinton has decided to release 30 million barrels of crude oil," he said Wednesday afternoon. "That's already knocked the price of crude oil down by a dollar."
The higher price of crude oil, which translates to higher gasoline prices worldwide, is what has spurred the energy crunch. But while other states are facing high natural gas prices, West Virginians are protected by a state rate moratorium.
The national average for self-serve regular unleaded gas (prior to the release of the 30 million barrels) is $1.56 a gallon, Beheller said. That is 7 cents more than last month and 28 cents more than the same time last year.
"It's been our position that these incremental releases only offer a short reprieve from gas prices ...," he said. "What we need is some sort of strategic long-term plan to help assist crude oil production."
Michael Herron, executive director of Independent Oil & Gas Association of West Virginia, echoed Beheller's opinion.
"This country has no energy policy," Herron said. "The Clinton-Gore administration's policy is Let's buy as much foreign oil from OPEC as we can.' "
Fortunately, he noted, West Virginia consumers will not suffer higher natural gas prices due to a rate moratorium put in place by the state's Public Service Commission.
PSC Chairman Charlotte Lane explained the extent of the program.
"In 1998 we entered into a three-year rate moratorium with Mountaineer Gas and Hope Gas Inc. and later with Equitable and Carnegie gas companies," she said. "Ninety percent of West Virginian natural gas customers will not be seeing any rate increase."
The moratorium should result in a savings of $62 a month for each customer.
"We're very lucky that this energy crunch will not affect most West Virginians," she said.
Bob Fulton, media relations representative for Dominion Transmission in Clarksburg, called the moratorium an innovative program that will compel companies to manage more efficiently at the set rate with the savings being their reward.
"We have sufficient supplies this winter," Fulton said. "There will be some high cost elsewhere ... in getting natural gas from the distributor to consumers."
The PSC also struck a deal with power companies around the state.
"Electric rates will be frozen," Lane said. "They will be at the same level they are now this winter."
Jeri Matheney, state corporate communications manager for American Electric Power, said West Virginia consumers can be sure there will be no power shortages or interruptions due to the energy crunch.
"We're almost completely coal-generated power in West Virginia," Matheney said. "We're in fine shape. There's not a shortage there at all."
AEP, the largest consumer of West Virginia, will offer reliable, low-cost power to consumers and businesses this winter, she added.
West Virginia Coal Association President Bill Raney said the crunch is just another indicator of how coal has an important role in the country's energy supply.
"Coal is going to have a huge part in this crisis," Raney said. "It helps shore up the security of the country."
He said already some areas have experienced brownouts due to the crunch.
"It gets pretty disrupting when you lose your power for an hour or two," Raney added.
Electricity growth is up about 2 percent to 4 percent a year across the country, Raney indicated. And coal is responsible for about 57 percent of the country's energy.
http://www.dailymail.com/news/News/2000092837/
-- Martin Thompson (mthom1927@aol.com), September 28, 2000