CHARLESTON — Surging natural gas prices will drive up customers’ utility bills, and the West Virginia Public Service Commission is advising consumers on where they can look for assistance.
The U.S. Energy Information Administration (EIA) has reported international natural gas and liquefied natural gas prices hit record highs in the last quarter of 2021 and first half of 2022.
“Natural gas utility companies in West Virginia are currently filing their annual 30C cases with the PSC to adjust the purchased gas portion of their rates. Some of those requests are as much as 173% above the rates the Commission approved last year,” commission spokeswoman Susan Small said.
Mountaineer Gas Co. has 195,267 customers in West Virginia, which is a little over 58% of the total natural gas customers in the state. The company is requesting a 73.72% increase from $5.67 per thousand cubic feet (mcf) to $9.85, according to its 30C rate increase request.
Hope Gas/Dominion Energy is the second-largest natural gas provider in the state with 102,184 customers, which represents 30.43% of the state’s total. Its requesting a 173% increase, from $3.409 per mcf to $9.305, according to its 30C rate increase request.
Smaller natural gas companies, such as Peoples Gas WV, Consumers Gas Utility Co., Union Oil & Gas, Southern Public Service Co. and Cardinal Natural Gas Co.’s northern and southern divisions are requesting increases ranging from around 124% to 32%, according to 30C cases filed with the commission.
A.V. Company, which only has 67 natural gas customers in the state, has not yet filed its 30C case, according to Small.
“The Commission does not regulate the price of natural gas,” Small explained. “That price is determined by competitive markets.”
Small says there are two components that make up a residential natural gas utility bill: the cost the utility must pay to obtain natural gas, otherwise known as the Purchased Gas Adjustment (PGA), which is determined in a 30C case by the Public Service Commission; and the base rate, which covers all expenses other than the cost of natural gas the utility incurs in providing service.
“The Base Rate is determined by the Public Service Commission in 42T and 390P cases,” she aid. “390P cases were authorized by Senate Bill 390, passed in 2015, and provide for the expedited recovery of costs related to infrastructure replacement and expansion.”
Natural gas prices have increased 21.6% over the last year, according to the most recent consumer price index report from the U.S. Bureau of Labor Statistics.
The EIA also reports that the large increase in natural gas fuel costs over the past year is driving up wholesale electricity prices throughout the United States. With inflation still at high levels, surging natural gas prices are yet another blow for consumers. About half of homes in the U.S. use natural gas for space and water heating, according to the EIA.
Small said the PGA portion of a customer’s bill used to be less than half of a customer’s bill, but could now become more than half.
“Customers facing difficulties paying their utility bills should first contact WV211 to see what financial assistance may be available in their area, including churches and local charities,” she said. “Customers should also contact their local West Virginia DHHR office to apply for assistance through the Low Income Home Energy Assistance Program (LIHEAP), a federally funded program that helps low-income citizens pay for home heating and cooling, weatherizing your home and minor energy-related home repairs. DHHR also administers the 20% Discount Program, available from November through March to qualifying low-income customers.”
Small said Dollar Energy’s West Virginia Utility Assistance Program may be able to provide a one-time grant to help pay electric, gas or water bills.
“If LIHEAP is available, you must apply for that program before applying for the Dollar Energy program,” she said.
A link to Dollar Energy may be found on the PSC website at www.psc.state.wv.us.
Small added the West Virginia Housing Development Fund administers assistance programs for renters and homeowners who are struggling because of the pandemic or COVID-19.
“The Mountaineer Rental Assistance Program and the West Virginia Homeowner Rescue Program can help with utility bill payments, rent and mortgage assistance,” she said.
Detailed information, including eligibility requirements, are on the West Virginia Housing Development Fund website at www.wvhdf.com.
Small said company 30C rate increase requests may not be final and no decisions have been made. She said interim recommendations are due Oct. 11, 2022 and final decisions are due in late March 2023.
