SCE&G raising gas rates by 19%

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SCE&G raising gas rates by 19%

Wednesday, December 20, 2000 By JOHN P. McDERMOTT Of The Post and Courier staff

South Carolina Electric & Gas Co. asked for and received another sharp increase in its natural gas rates Tuesday, the utility's third such request since August. The latest 19 percent boost will raise by $21.28 the typical winter monthly heating bill for residential customers, the Public Service Commission said. The monthly average bill will increase to $130.45 from $109.17 starting Jan. 1, SCE&G said. The company said it was forced to seek its third rate increase this year to cover soaring wholesale prices. "We're paying about three times as much for natural gas as we did a year ago," said SCE&G spokesman Robin Montgomery. State regulators agreed that natural gas prices are skyrocketing. "What is proposed today is simply a pass-through by SCE&G to its customers that certainly does not impact SCE&G's profitability in any way," said Gary Walsh, executive director of the PSC. Cold weather and the increased use of natural gas to generate electricity is reducing supplies, regulators and the utility said. "I think we're going to be in for a very rough year next year. Prices are going to be very high, even in the summer," said Commissioner James Blake Atkins. The spike in natural gas prices follows a period of low prices in the past two years during which suppliers shut down about 300 rigs. But when demand jumped, suppliers could not keep up. Even with more rigs back in service, experts predicted it could be months before the supply grows to a point where it brings down costs. "Many utilities have long-term contracts for natural gas, but the prices follow the prices laid out at the well-heads," said Rhone Resch, spokesman for the natural Gas Supply Council in Washington, D.C. SCE&G gas customers have seen their bills soar 45.3 percent, or $45.20 a month, since August. The company suggested several steps to cut heating costs this winter: • Set thermostats at 68 degrees and water heaters at 120 degrees. • Check and repair leaking heat ducts. • Check and replace heating system air filters. • Use weather stripping around all doors and windows and caulk areas that allow heat to escape. • Open shades on sunny days. SCE&G said it also can set up alternative payment plans for lowincome customers who are unable to pay their gas bills all at once. The toll-free telephone number for the program is 1-800-251-7234. Also, the company said its Project Share program has contributed $100,000 to the Governor's Office of Economic Opportunity to help low-income families pay higher-than-expected heating bills and provide winterizing materials. SCE&G serves 256,000 natural gas customers in 30 South Carolina counties, including parts of greater Charleston. The Associated Press contributed to this report.

http://www.charleston.net/pub/news/state/sceg1220.htm

-- Martin Thompson (mthom1927@aol.com), December 20, 2000


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