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Local News
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Thursday, July 03, 2008, 10:33 AM
Natural gas rates to increase in Wilson By Rochelle Moore | Daily Times Staff Writer The increasing cost of natural gas nationwide has led Wilson Energy to increase natural gas costs to customers 18 percent starting July 15. And another increase could be on the way if prices continue to climb in the next few months, said Fred Horne, director of utilities for the city of Wilson. "The sad part of this whole thing is the price of gas is changing every day and every month," Horne said. "Our 18 percent increase will not be high enough to cover the cost of gas in September." Since February, natural gas prices have risen from $11.25 per dekatherm to $14.77 per dekatherm, he said, and future costs for July through September are projected to exceed $16 per dekatherm. One dekatherm is equivalent to 1,000 cubic feet of natural gas. Wilson Energy has not raised gas rates since November 2006. "It's just like going to the pump to buy gasoline," Horne said. "It goes up every day." The 18 percent increase covers the same increase Wilson Energy is paying for natural gas. No additional costs or fees are being added to the increase, he said. "This is passing on what it costs us to buy gas from the Gulf of Mexico to Wilson," Horne said. "We are not making any money off this 18 percent." The Wilson Utility Rate Committee, composed of city administrative staff, including Horne, recommended the increase to the city manager in June. On Wednesday, City Manager Grant Goings notified the Wilson City Council of the increase, which the council can reject before the increase goes into effect. A typical family in a new 1,200- to 1,500-square foot home, with an average usage of 45 to 50 ccf each month would pay $14 to $16 more after the rate increase starts. Industrial and commercial rates will also rise 18 percent to the new rates of $1.89 per 100 cubic feet for the first 10,000 ccf and $1.87 per 100 cubic feet for usage over 10,000 ccf. The facilities charge will be $9. Wilson Energy customers will receive a letter with their utility bills notifying them of the rate increase. Other natural gas providers are also increasing their costs due to market prices for natural gas. The Public Service of North Carolina Energy, which serves 458,000 customers, including Raleigh, was approved by the N.C. Utilities Commission to raise natural gas rates 16 percent on June 1 and 15 percent on July 1. The Commission also approved an 18 percent increase for the Piedmont Natural Gas company, which serves 720,000 customers in the mountains, central North Carolina and eastern North Carolina, including areas outside of the Wilson Energy market. Wilson Energy, which is owned and operated by the city of Wilson, is not regulated by the state Utilities Commission. Natural gas prices are being investigated at the federal level due to unusual spikes in the summer, when the demand for natural gas is low, said Jeffrey Davis, director of public staff in the natural gas division of the Utilities Commission. Natural gas prices are also being affected on the same level as other energy sources nationwide. "Our companies are trying to understand why the costs are up this summer, and I think everyone is puzzled by this because the demand for gas is low," Davis said. "I don't think anyone really knows. There's not any shortage of supply and there's not any pending hurricanes." rochelle@wilsontimes.com | 265-7818
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