Ohio:Cinergy will seek another gas rate increase

greenspun.com : LUSENET : Grassroots Information Coordination Center (GICC) : One Thread

Cinergy will seek another gas rate increase Post staff report

Skyrocketing prices for natural gas could be reflected on Cinergy Corp. bills as early as January in what would be a third consecutive quarterly increase.

Cincinnati Gas & Electric Co. and Union Light, Heat & Power, both units of Cinergy Corp., will ask Ohio and Kentucky regulators Friday for increases in the cost of gas passed on to consumers, the company said today.

This marks the first time in memory the utilities have sought three consecutive quarterly increases in gas charges, a spokesman said.

The last increase took effect Dec. 1 with CG&E residential customers getting a 10.5 percent increase and ULH&P customers a 7.5 percent increase.

In the September-November period, CG&E customers had a 12 percent increase while ULH&P customers had an 8 percent increase.

Utilities seek rate adjustments every three months to reflect what they pay for gas. The utilities aren't allowed to make money selling gas, only to pass through their costs for the gas. They make money transporting the gas from pipelines to homes.

A Cinergy spokesman said the company may ask that the higher prices take effect in January, rather than in February, as they normally would.

Increased demand and a slowdown in drilling new wells because of a two-year slump in prices are blamed for the increase. Gas prices in the wholesale and futures markets are up as much as 400 percent.

Cinergy said customers having trouble paying the higher charges can call the utility at (800) 648-7777 or (513) 651-5100. Cinergy is also matching contributions to its program to fund gas bills on a dollar-for-dollar basis rather than its traditional $1 for every $2 contributed.

Publication date: 12-07-00

http://www.cincypost.com/news/gasrat120700.html

-- Martin Thompson (mthom1927@aol.com), December 07, 2000


Moderation questions? read the FAQ