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Utility rates are heating up
Energy bills expected to rise this winter compared with last year

Date published: 10/18/2008

BY BILL FREEHLING

Despite the warm weather earlier this week, winter is on its way. And with it will come heating bills that could be higher than last year for many in the Fredericksburg area.

Utility companies are paying higher costs for energy and passing that along to customers. Customers using the same amount of energy this winter should expect higher bills, although there is a wide variety in how much costs will increase. Further, companies are urging customers to use less energy.

Columbia Gas of Virginia twice raised its rates this summer. The rates have since dropped as natural gas prices have come down, but they remain about 24 percent higher than last year. Columbia Gas spokesman Bob Innes said rates should drop again at the end of November assuming natural gas prices don't rise.

Dominion Virginia Power raised its rates by 18 percent this summer, although spokesman David Botkins points out that rates are still 6 percent below the national average for electricity.

Northern Neck Electric Cooperative is seeking permission from the State Corporation Commission to raise its rates about 6 percent in order to offset rising fuel costs. A hearing will occur with the SCC on Dec. 16, and NNEC plans to put the new rate into effect Jan. 1.

Northern Virginia Electric Cooperative spokesman Mike Curtis said customers should expect to see about a $6 increase per month this winter assuming the same usage. That's based on the higher energy prices NOVEC is paying. The company's Operation Round Up program allows customers to have bills rounded up to the nearest dollar, and that spare change helps the needy pay their utility bills.

Rappahannock Electric Cooperative spokeswoman Ann Lewis said customers will see nominal changes of less than $1 in their bills this winter compared to last.

The various rate hikes come at a time when the economy is struggling and many are looking for ways to cut back on spending.

Frank DeForest, clinical services director of the Rappahannock Community Services Board, said he is concerned about how people who come to his agency for help will fare, given the current economy. He noted that as people have fewer resources, the numbers dwindle of those who contribute to programs such as food banks and emergency fuel assistance.


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Date published: 10/18/2008



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