Dominion Hope Rates Save Customers $15 Million On Natural Gas
Clarksburg, W.Va. - It's a fact that furnaces worked longer
this past winter because of extremely cold temperatures, which increased everyone's
natural gas heating bills. But Dominion Hope's customers have been shielded
from rising gas costs and have saved a total of $15 million - about $130 per
customer - compared to market rates.
Dominion's rates were frozen for 2002 and 2003 through an
innovative approach developed with the Public Service Commission of West Virginia.
Rising gas costs have resulted in higher rates of up to 25 percent in surrounding
states, but Dominion rates remained flat in West Virginia. Natural gas wellhead
prices increased 42 percent last winter, according to the U.S. Energy Information
Administration. Bills were higher specifically because of increased usage. The
average customer used 20 percent more natural gas last winter than the previous
winter.
"Dominion applauds the Public Service Commission for
implementing a rate structure that is certainly consumer-focused but also fair
to the company," said Jay Johnson, president and chief executive officer.
"Although customers received higher bills than usual because one of the
coldest winters in West Virginia history increased natural gas usage, they will
have saved a significant amount of money because of the frozen rates."
Although today's higher natural gas prices are currently not
affecting Dominion customers, that may change when the current rate freeze ends
on December 31. Dominion will need to apply to the Public Service Commission
for a new rate structure to become effective January 1, 2004. If natural gas
prices remain at or near current levels, Dominion will need to increase its
rates to acquire adequate supplies of natural gas at market prices to meet customers'
needs.
Dominion encourages its customers to conserve energy. For
example, customers can make sure furnaces and other gas appliances are clean
and in good working order. They also can replace old water heaters and furnaces
with more efficient, modern ones and make sure their homes are well insulated.
If customers have difficulty paying gas bills, they can get
information about assistance programs by contacting Dominion at 1-800-688-4673.
Dominion is one of the nation's largest producers of energy,
with a diversified and integrated energy portfolio that includes 24,000 megawatts
of generation and 6.1 trillion cubic feet equivalent of proved natural gas reserves.
Dominion also serves 5 million retail energy customers in nine states. For more
information about Dominion, visit the company's web site at www.dom.com.
