The Virginian-Pilot
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Columbia Gas of Virginia filed a plan Monday with state regulators to launch several conservation programs to help consumers save energy.
If customers use less natural gas under the programs, Columbia Gas would impose a charge on their bills to recoup the revenue it loses from the drop in consumption. State law allows natural gas companies to adjust their rates after implementing conservation measures so they can collect the amount they normally would to cover their projected costs.
The companies have said they otherwise would have no incentive to encourage conservation efforts if it meant they would lose money. Natural gas companies make their profit on gas delivery charges, which are partly based on the customer's usage, measured in 100 cubic feet, or Ccf.
Columbia Gas has projected that customers will save $22 million with the programs over time. By using the conservation measures, they would save more in their bills than any charge would add, said Bob Innes, a Columbia Gas spokesman.
The company has proposed six programs, mostly for residential and small-business customers, over three years. They include incentives for customers to upgrade to more efficient equipment; support for the state's Weather Assistance Program for low-income households; and an Internet-based home energy audit that would allow customers to plug in their billing and usage information and see ways to save.
The programs, which require State Corporation Commission approval, would take effect Jan. 1. Customers would see a new line item related to the conservation programs on their bills starting in March, Innes said.
The company serves about 65,000 customers in Portsmouth, Chesapeake, Suffolk, Smithfield and Isle of Wight County.
Virginia Natural Gas instituted a similar conservation program in January and a similar adjustment to customer bills to address changes in its revenue. In March, the agency added a $7 charge for customers using 100 Ccf. In May, the average residential bill included a $1.76 credit, because customers can get money back under the program when usage is above normal.
Carolyn Shapiro, (757) 446-2270, carolyn.shapiro@pilotonline.com

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Why Conserve?
Why should I conserve if they are going to charge me anyway? Kinda like putting 12 ounces of coffee in a can and still charging for 16.
Another example of quasi-government stupidity
If businesses are not making money because consumers aren't using enough product they should have to reduce cost, not be able to charge consumers for something that isn't used.
What right does the state have to make these kinds of deals with these utilities?
Next thing they will be sending a "non-support" bill to all citizens that aren't using their product.