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Utility rates are heating up

October 18, 2008 12:15 am

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BY BILL FREEHLING
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.

Here's one silver lining: Customers have some control over their energy bills. The higher rates assume the same energy usage as last year, so people who pay attention to energy efficiency can avoid some or all of the increases.

Power companies list tips on their Web sites on saving energy. Among the common advice: Set programmable thermostats low, use compact fluorescent light bulbs, air-dry dishes, turn off electronics when not in use, caulk around windows and doors to seal cracks, and replace air filters regularly.

In addition, customers can sign up for bill payment plans that allow them to spread out the higher bills that come during the winter over the course of the year.

Another way that customers seem to be dealing with rising heating bills is burning more firewood. During the last heating season, according to the Virginia Department of Forestry, Virginia households burned 1.9 million cords of fuel wood.

Charlie Becker, utilization and marketing manager for the VDOF, said there has been an increase in demand for firewood the past couple of years. Demand for wood pellets used in stoves has also gone up.

Brian Lane and Dan Burke, Spotsylvania County men who recently took out classified ads saying they had firewood available, both said they've had several calls from interested parties.

In addition, a federal assistance program is available to help low-income households with home-heating costs. People can see eligibility requirements and apply for this program at local social services departments.

Bill Freehling: 540/374-5405
Email: bfreehling@freelancestar.com





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