Fee to be added to Columbia Gas customers' bills

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By Carolyn Shapiro
The Virginian-Pilot
© November 30, 2011

Columbia Gas of Virginia plans to charge customers a monthly fee to help cover the $100 million the company will spend over five years to improve some of its older pipelines.

Next year, each residential customer will pay an extra 36 cents a month, or $4.32 for the year. The charge is expected to grow to $2.86 a month in 2016, according to a proposal filed in June and approved Monday by the State Corporation Commission.

A 2010 state law helped speed the process for natural gas companies to improve aging infrastructure by allowing them to charge customers immediately, rather than go through the longer process of regulatory rate approval.

The charge, known as a rider, will cover projects from 2012 to 2016, as well as $2.9 million in infrastructure work taking place this year, according to the filing.

The projects include replacement of older steel and cast-iron mains - the pipelines that run through streets into neighborhoods - and first-generation plastic pipe, as well as some service lines that deliver the gas to homes.

Portsmouth and Chesapeake are slated for work next year, said Robert Innes, a Columbia Gas spokesman. The company, based in Chesterfield County, has about 65,000 customers in those two cities, and Suffolk, Smithfield and Isle of Wight County.

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Hard to understand

Submitted by fulcrum3 on Thu, 12/01/2011 at 8:33 am.

This business is based on service that requires a distribution system, the infrastructure. The cost of maintenance is always part of their business. Why is it necessary to charge a fee for something that's already figured in to conducting their business and why is it thought by the state regulators to be supportable? Just how deep does the connection go between regulators/stockholders? Isn't this seen as mismanagement and then whining on the shoulders of state regulators to protect the investors? Will this fee drop? Heck no. Your rates just increased forever. Brought about because the company chose to protect profits by neglecting maintenance.

Great, I only use gas for

Submitted by stevew51377 on Wed, 11/30/2011 at 9:30 am.

Great, I only use gas for cooking. So a 2$ fee raises my bill by about 15%.

I agree!

Submitted by NO JONES on Tue, 11/29/2011 at 10:01 pm.

The largest bull stock market, the largest bull real estate market, the largest bull natural gas and oil market, the largest bull bond market, the largest bull gold and German Marks market in history since 1997 and they have the white liners hanging out of their pants?? Absolutely not, cut salaries, cut bonuses. Obviously they don't know how to run their business, therefore their business model sucks.

Why?

Submitted by fulcrum3 on Tue, 11/29/2011 at 4:27 pm.

Infrastructure is part of the cost of doing business. If they haven't been taking care of their infrastructure then they've been whizzing away their profits. The cost of maintaining their equipment isn't an unknown or and "extra burden" on them. If they don't have the funds to take care of their business then they should get out. Are you trying to tell me I can charge someone because my car needs maintained? You regulators are smoking something. They pulled the blanket over your head for sure.