May 17th, 2010

From an editoral written today in The Patriot News:

Columbia Gas is forecasting a 10 percent rise in the cost of natural gas.

The utility offered the forecast in a required filing with the Pennsylvania Public Utility Commission, said spokesman Mike Marcus.

The company is mandated to forecast the price of gas for the coming year that runs from Oct. 1 through Sept. 1, 2011, Marcus said. The company projects the cost of gas will increase 10 percent over that time span, he said.

The cost of the increase would be passed on directly to consumers, he said. The company doesn’t make money on the natural gas itself, but on transmission fees and customer charges.

He said the cost of natural gas is adjusted quarterly by the company to reflect actual rates.

The natural gas cost projection comes as the company seeks to increase the distribution rate it charges consumers.

A pending request before the Public Utility Commission would increase natural gas bills by about 7 percent.

If it is approved, the average residential customer’s monthly bill would jump about $6 a month to $90.82. Commercial and industrial customers would see increase of 3.8 percent and 3 percent, respectively.

The increase could net the company an additional $32 million in annual revenue.

The utility is hoping to raise the rate to offset more than $165 million in system upgrades made since 2008.

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