Natural Gas Bills to Decrease Four Percent
Contact: Bob Innes
(804) 768-6410
(804) 512-1425 - cellular
rinnes@nisource.com
Feb. 26, 2010 – Columbia Gas of Virginia (Columbia) customers can expect to see a 4 percent decrease in their monthly natural gas bills effective March 1, 2010. The decline is a result of lower costs that Columbia has incurred in purchasing natural gas for its customers, and the implementation of a revenue normalization adjustment (RNA) as a result of a state-approved customer conservation and efficiency program.
The proposed reduction means a typical residential customer will have their total monthly bill decrease from a current level of $139.71 to $134.07. This is based on a 100 Ccf monthly seasonal usage. This cost adjustment period covers the months of March, April and May. A Ccf is the measurement used for natural gas usage and is the equivalent of 100 cubic feet. The natural gas cost decrease is about 11 cents ($0.1067) per Ccf.
“With our customers experiencing increased demand for natural gas due to weather this winter heating season that is thus far, 22 percent colder compared to last year (based on degree days*), this decrease is positive news,” said Carl Levander, Columbia’s president.
Levander also pointed out that assistance is available for customers who may be struggling to pay their natural gas bills.
“It is important that any person needing assistance immediately contact Columbia so we can provide them assistance with payment options or connect them with local agencies that can provide help,” Levander said. “Our representatives can enroll customers in Columbia’s HeatShare program administered by the Salvation Army, through which Columbia and its customers are able to provide energy assistance to qualified individuals.”
Levander added that Columbia will be unveiling a residential and small commercial energy efficiency program this spring. The program will include appliance and equipment rebates, a web-based home energy assessment tool and free energy saving materials for Columbia customers.
Beginning in March 2010, the RNA line item will appear on the monthly bills for residential and commercial customers. The new RNA being applied to monthly bills allows Columbia to more accurately recover the fixed costs incurred to provide safe, reliable natural gas service. Fixed costs include the essential investments in the people, equipment and materials needed to provide natural gas service and are independent of the cost of the actual natural gas consumed by a customer. The RNA is designed to break the link – or decouple – the recovery of non-gas (fixed costs) revenues received by Columbia from the amount of natural gas customers use. The March RNA will be about 5 cents ($0.05028) per Ccf. Columbia customers will continue to retain the savings in gas costs they generate by reducing the amount of natural gas they use.
By law, utilities like Columbia are required to pass through the costs they pay for natural gas to the consumer on a dollar for dollar basis without markup. The other components of a Columbia monthly natural gas bill, which are not changed by this filing (and which have not been increased since 1998), include charges for the service and delivery of natural gas and state and local taxes.
For more information on steps to manage energy costs, customers can call Columbia’s DirectLink at 1-800-543-8911 or log on to www.columbiagasva.com.
Additional Energy Savings tips can be found at the following web sites:
• U.S. Department of Energy – www.hes.lbl.gov or www.eere.energy.gov
• Energy Star - www.energystar.gov
• American Gas Association – www.aga.org
*Degree days – A common measure of the coldness of weather to determine heating requirements. Degree days for a 24-hour period are calculated by adding the day's high and low temperatures and dividing by two, and subtracting the result from a reference point, usually 65 degrees Fahrenheit