Published: Saturday, July 21, 2007
Dominion proposes 4 percent bill boost
East Ohio wants to increase a
transportation charge to cover
operating costs and upgrades.
By DON SHILLING
Natural gas bills appear to be headed up again, only this time it has nothing to do with the cost of gas.
Dominion East Ohio says it needs more money to operate its system and add automated meters.
It is proposing an increase in its monthly transportation charge, which would boost residential bills by 4 percent. The average monthly bill would go from $107 to $111.50.
The increase would be paid by customers who buy gas from East Ohio, as well as those who use a third-party supplier.
Even though gas bills have risen dramatically in recent years, this is the first rate increase that the Cleveland-based utility has sought in 13 years.
Other increases have come from the rising cost of natural gas because utilities pass on gas costs to customers. Gas costs, which provide no profit to utilities, make up about three-fourths of a customer's bill.
East Ohio informed the Public Utilities Commission of Ohio on Friday that it intends to file the rate request in about 30 days. The case will take about nine months to complete, so an increase isn't expected until spring 2008.
East Ohio's proposal would raise $73 million a year, about $5 million of which would be used each year to install automated meters.
Efficient meter reading
These meters would send wireless signals to receivers located in vans that would be driven down streets. East Ohio plans to install the automated meters for all 1.2 million customers within five years.
Jeff Murphy, East Ohio director of regulatory affairs and pricing, said the new meters will be easier for the utility because many customers have meters that are inside their homes.
Also, they will allow for readings each month, giving customers a truer picture of their gas usage. Now, bills alternate between actual readings and estimates.
Murphy said that fewer meter readers will be employed over the long term but that the utility hopes to avoid layoffs.
After a substantial number of meters has been installed in about three years, the company will begin reading the remaining meters every month. Once all meters have been replaced, the company may be able to move the meter readers into other parts of the company, he said.
In addition to the meter program, East Ohio needs the rate increase because of the higher cost of doing business in the past 13 years, Murphy said.
For example, the utility is spending $2 million more a year on postage than it did 13 years ago and has invested $800 million in its system since 1994, resulting in higher taxes and depreciation expenses.
The Ohio Consumers Counsel, which represents consumers in rate cases, will examine East Ohio's costs to make sure they justify the proposed increase, said Erin Biehl, an agency spokeswoman.
Transportation rate
East Ohio is proposing increasing the basic transportation rate from $1.24 per 1,000 cubic feet of gas to $1.62. This fee is not listed separately on bills but is included in the transportation charge for customers who buy gas from other suppliers and in the gas usage charge for those who buy their gas from East Ohio.
The monthly service charge, another fee on the bill, would be unchanged. This $5.70 charge allows the utility to recoup the cost of paying meter readers and handling billing and customer service.
The rate increase also includes a proposal to increase the amount being spent on customer conservation programs. East Ohio is directing $3.5 million a year now to such programs but is proposing to spend at least $6 million a year.
The program funds home energy audits and rebates for energy conservation equipment, such as high-efficiency furnaces. Murphy said East Ohio would seek assistance from state officials in setting income requirements for those participating in the program.
Murphy said East Ohio has been able to delay a rate increase for 13 years by increasing the efficiency of its operations. He said it won't be able to delay a rate increase that long again, adding that he expects another rate case to be filed within three or four years.
More Stories from Tue, Jul 24, 2007
- City spot to be honored for Good Humor history
- Audience vocal about Brookfield BOE moves
- Howland gets new super; taught in Kinsman, Hubbard
- Time Magazine: Altmire in political no man's land
- Men arrested in thefts from cars in Boardman
- Men arraigned in standoff
- Attention to detail pays off in school
- School board grants wage raises all around
