Columbia Gas seeks rate boost
• Company: Hike to improve servicesBy MICHAEL SCHULER, Times Leader Staff Writer
Later this month, the Public Utility Commission of Ohio is expected to decide on a request by Columbia Gas that could result in a base rate increase of 5 percent for natural gas customers.
But while the natural gas company is seeking the increase, they are also saying consumers will be getting a lot more services for their money, including safety upgrades, more reliable delivery of gas and more frequent and accurate meter readings.
Columbia Gas of Ohio filed the request with PUCO in March and if the base rate increase is approved, it is likely to go into effect later in 2008.
The base rate does not reflect the cost of the natural gas, which the company does not earn any profit on. The base rate makes up about 20 percent of a gas customer's bill and is money charged for the delivery of the gas and the other costs associated with providing it.
Why the increase?
According to Pamela Learman, external affairs specialist, and Dave Rau, communications and community relations manager, both with Columbia Gas of Ohio communication department, this is the company's first request since 1994 and since that time, the company has been making major investments in the state.
Columbia Gas has invested $800 million in system improvements, and wants to make that a $2 billion investment over the next 25 years to replace 4,000 miles of aging steel lines, including those that are between 40 and 70 years old, with new plastic pipe.
According to Rau, this will help prevent possible gas leaks and will not corrode.
All customers will also have excess flow values installed that will "kick-in" to automatically shut off the gas in the event that something, such as a line break, should occur. There will also be upgrades to increase pressure that will have the potential for more economic development.
With the increase in pressure, the two said it will result in more reliable service and help prevent water from getting into lines, which often results in lose of gas flow.
Columbia Gas is also taking over something that customers previously were responsible for - the customer service lines from the curb to the meter.
That change went into effect in April and has the potential to save customers thousands of dollars should the line ever need repaired.
Another big change will be the placement of the gas meter. Many homes still have the meter located inside. To read the meters, the gas company has to come inside to get an actual reading. Under the new plan, meters will be moved to the outside of buildings and equipped with a radio transmitter, making it possible for meter readers to get automatic readings simply by driving past a home.
Columbia Gas will also be replacing the risers, connecting the service line to the meter. In total, 320,000 will be replaced in the state of Ohio at a cost of $160 million. It's a move the gas company says will make communities safer for the customers and others in neighborhoods around the state.
Learman and Rau also said Columbia Gas of Ohio wants to replace the volumetric charge with a fixed delivery charge.
The company is looking at saving energy with a new, comprehensive energy efficiency program that will apply to all residential customers, as well as small businesses, along with increasing funding for their "WarmChoice" weatherization program for low-income households.
When it comes to the new, comprehensive program, rates will be given for those who have an evaluation by an energy rater. Customers will also be eligible for rebates for having building insulated and getting a high-efficiency furnace. A "setback" thermostat can be programed to lower the temperature when a home or building is unoccupied for periods of the day and even adding a low-flow shower head can result in rebates.
As far as the "WarmChoice" program, Columbia Gas partners with the Corporation for Ohio Appalachian Development for the local area. Those customers who earn lower than 150 percent of the federal poverty guideline will still be able to continue to get the same services as before, and will allow for an energy rater at no cost.
Schuler can be reached at shoe@timesleaderonline.com.
