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News
Release
News
Release:
JUNE 30, 2008
Contact:
Columbia Gas of Virginia
Bob Innes
(804) 768-6410 - office
(804) 512-1425 - cellular
rinnes@nisource.com
Columbia
Gas of Virginia Adjusts Natural Gas Costs
CHESTER,
VA. - JUNE
30, 2008
- Continuing increases in the price of natural gas are creating
the need for Columbia Gas of Virginia to make an adjustment
to its purchased natural gas cost rate effective today. The
result is a $3.36 increase to a typical residential monthly
bill.
The
average monthly cost will increase to a seasonal level of
$55.70 compared to the current level of $52.34 based on 23
Ccf for monthly summer usage. This cost adjustment period
covers the months of July and August. A Ccf is the measurement
used for natural gas usage and is the equivalent of 100 cubic
feet.
"Natural
gas prices have continued to increase since Columbia put the
current rate into effect at the end of May,” said Carl Levander,
Columbia’s president. “This is requiring us to implement consecutive
monthly increases in an effort to match as closely as possible
the amount customers are paying for natural gas with the cost
of the natural gas we buy on their behalf. By keeping our
price for natural gas in line with our costs we are better
able to manage this portion of our customer’s bill. This is
critical at this time, because forecasts currently project
higher energy costs continuing through next winter.”
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. Customers are continuing to realize
a base rate credit of $2 million annually in 2007 and 2008
as part of the performance-based regulatory plan approved
in late 2006. Even with this adjustment, consumers are receiving
the value of natural gas for less than $1.86 a day.
Levander
added that Columbia continues to support enactment of energy
policies to help reduce natural gas prices in the longer term.
These include actively urging Virginia's Congressional delegation
to take action to open access to new sources of natural gas,
including drilling off the Virginia coastline. Also, Columbia
remains an advocate for full federal funding of the Low Income
Energy Assistance Program which provides financial support
to Virginians who have difficulty in paying for their near-term
energy needs.
Given
the likelihood of higher energy prices during the upcoming
winter, Columbia strongly encourages its customers to take
advantage of the Budget Payment Plan, which spreads their
annual billing evenly over a 12-month period. Taking advantage
of this payment option will reduce the sharp increase in monthly
bills that might otherwise occur when customer usage increases
when colder weather occurs. Customers may opt into the Budget
Payment Plan by paying the budget amount indicated on the
August natural gas bill.
Columbia
customers can also take the following steps to manage their
energy costs:
- Perform maintenance on your furnace
- Install caulking or weather-stripping around windows or doors
- Keep all registers and air return ducts clear of furniture,
carpet, drapes and vacuum them occasionally
- Add insulation to the attic or crawl spaces
- Install a set back thermostat
For more
information on steps to manage energy costs, customers can
call Columba'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:
About
Columbia Gas of Virginia
Columbia Gas of Virginia, with headquarters in Chesterfield
County, is one of the 10 energy distribution companies of
NiSource Inc. (NYSE: NI). Columbia Gas of Virginia serves
more than 240,000 customers in portions of Northern Virginia,
Hampton Roads, suburban Richmond, Central Virginia, and the
Shenandoah Valley, the Lynchburg region and parts of Western
Virginia. NiSource distribution companies serve 3.8 million
gas and electric customers primarily in nine states. More
information about Columbia Gas of Virginia is available on
the World Wide Web at www.columbiagasva.com.
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