The Virginian-Pilot
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NORFOLK
In March, Virginia Natural Gas customers will start paying a charge related to the company's new conservation program.
The March bill will show a $7 charge for customers who use 10,000 cubic feet of gas, or 100 Ccf. A state law passed last year allows the natural gas provider to add the charge to make up the income it will lose if customers reduce their usage.
Without the charge, VNG officials said, they would have no reason to encourage consumers to conserve, just as a supermarket wouldn't encourage customers to buy fewer groceries. With the charge, the company can recoup the revenue it needs to operate, plus a reasonable profit, as approved by state regulators, said Jodi Gidley, president of VNG, which serves 264,000 customers in Hampton Roads.
If customers are using less gas, the savings in their bill should outweigh the extra charge, Gidley said. Bob Buccafurno, a VNG customer in Chesapeake, said he tries to turn down his thermostat as much as possible to save on his heating bills and doesn't think the gas company should charge him for doing so.
"If the economic times are tough, and I'm trying to cut back on usage here and there, that should be for my benefit," he said. "They're taking advantage of us."
VNG will adjust the conservation amount monthly. It even could show up as a credit on bills if usage rises above normal.
The adjustment will show up in bills after two months. For example, the March charge reflects January usage. Also starting in March, VNG will reduce its gas supply rate to reflect falling wholesale fuel prices. That reduction will cut the bill for customers using 100 Ccf by $7.57. The conservation charge, however, adds $7, so the March bill would decline 57 cents.
About two-thirds of a customer's bill is the gas supply charge, representing VNG's cost to buy gas, which it passes to customers with no markup. The company earns its profit on volume-based delivery charges.
VNG launched its conservation programs - including rebates for the purchase of energy-efficient appliances and assistance with home weatherization plans for low-income households - on Jan. 1. Even a step as simple as regularly replacing an air filter can cut a household's gas consumption by 10 percent, Gidley said.
"If you really take advantage" of the conservation measures, she said, "you can take much more control of what your bill looks like."
Carolyn Shapiro, (757) 446-2270, carolyn.shapiro@pilotonline.com
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Fee for Conservation
I thought Virginia law makers were owned and operated by Dominion Virginia Power, Norfolk Southern, Cox Cable, and Sentara. I guess they had to diversify since the economy crumbled. Way to go Tax'em Timmy.
Did you read everything???
It is obvious that very few of you guys read that this was passed LAST YEAR!!! The last time I checked Obama was still on his campaign and hadn't even become president yet. Therefore, let's take a stab at who was in office to pass something as ridiculous as this.
More than meets the eye
I did some research on this. First, the article is misleading because most folks use way less than 1000 therms per month, so this is not a flat fee of $7.00. It will vary, and most folks will pay a lot less. Second, this will change every month and it will go up and down (and can be a credit). Third, it doesn't change what the average person pays on a yearly basis -- it is designed to smooth out the peaks and valleys.
The other thing -- since the cost of gas is going down, which the article did not stress, for most folks this is not going to mean much, if any, of a change in their bill for March.
The idea here is to make sure that the gas company can work with us to find ways to lower our overall use of gas, and lower the total bill we pay, while making sure that it has enough revenue to keep the lines repaired and working properly. It doesn't change how much profit they are allowed to make. Also, the article failed to mention that the company is starting to offer rebates on more efficient appliances and such to help customers save even more than the $7.
I'm sorry, but it just looks like someone's trying to sell newspapers here.
WOW
Im shocked... they are basically saying "sure, we support conservation, but it's going to hurt our bottom line, so please give us a handout so we can keep our board room looking good"
Quit complaining and show
Quit complaining and show your displeasure by switching to propane. It's more expensive but, that will show 'em who's boss.
Imagine
Imagine what they will charge if you tell them to discontinue srevice or to get their gas lines off your property??????
Now That is Funny. NOT!!!!
In order to save money, consumers cut back on use. And in order to consreve gas and save money, VNG gets to charge an additional fee? Now that is a reward for good behavior. Which blood sucking idiots in the General Assembly voted for that crap? Let me guess, those senators and delegates who are VNG stockholders. This is outrageous. A higher bill with some sort of nonsensical fee is the consumer's reward. Gimme a break. Who says big business isn't alive and well?
Consumer can't win
Do you believe it? Consumers willing give up comfort and roll back the usage of their gas to save a few bucks and then the gas company and the political system put a fee in place that you have to pay so that you can conserve gas. I can not believe that even the dumbest of politicians think this is a good idea! The utility commission is doing nothing but guarenteeing profits for the gas company. Where is the incentive for them to take any steps to manage their business in a competetive way? We don't need to do anything other than request a rate increase. Hopefully someone will properly identify the increase as a stupidity increase, to at least attempt to embarrass the gas company. Ditch them, switch over to an efficent electric heat pump system! Abandon them!
Well isn't this just a monopoly.
So when we use less we get charged more. When the supply starts to run out we get bent over and forced to take it even worst? The field supplies are said to last only 25 years. Majority of us at that age will be needing more natural sources such as methane. They should cut CEO pay before banging us in the head. If it's state ran we should be able to obtain records due to Freedom of Information Act
Just say thanks to Reagan Economics 40 years of it allocated majority of wealth to the top 5%. At least with Democratic Congress we bite the hand that feeds us.
EX: UBS, swiss tax haven bank, donating mass amounts to Obama inauguration Ball and being charged with aiding in tax evasion.
The true catalyst which made our downfall was after 9/11/01, Federal Reserve flooding the banks with money completely unregulated. Causing false growth, predatory lending, and pay standards not compensating for inflation.
Natural gas is actually a
Natural gas is actually a pretty bum fuel. We buy a ton of it from Canada. It's not renewable. Perhaps the best solution is to disconnect it. Electric flash water heater, electric range. Sure heat pumps don't have the high temperature output that gas furnaces have, but it doesn't get that cold here that often.