In this uncertain world Pittsburgh-based Weatherwise USA isoffering to eliminate one weather-related stress factor – that ofskyrocketing gas heating and cooling bills. The WeatherwiseWeatherProof Bills program claims to be the first to offer afixed-price gas service that eliminates weather- and gasprice-related uncertainty for individual consumers.

Kansas Gas Service, a division of ONEOK, recently became thefirst regulated utility to join in an alliance with Weatherwise tooffer the service to its customers. “The WeatherProof Bill isparticularly attractive to budget-conscious consumers who valuesimplicity and predictability in their energy bills,” said BernieBilski, president of Pittsburgh-based Weatherwise.

While some marketers offer special weather-related hedgingproducts to more sophisticated wholesale customers, Weatherwisetakes over the risk and cost evaluation for individual consumers.The company uses sophisticated software to compute a consumer’sWeatherProof Bill based on previous natural gas consumption,contracted gas prices, average temperatures and administrativecosts. Fred Beorn, a Weatherwise vice president, said Kansas GasService will offer the levelized, firm price billing to customerswhile his company “will serve as a backroom operation” for theservice. “We serve as aggregators and then lay off the risk withother companies such as Enron or Aquila” through their hedginginstruments.

Kansas Gas Service has received approval from the KansasCorporation Commission for a 12-month pilot program in a limitedarea. If that is successful the program will be offered to allcustomers.

Weatherwise USA has a variety of utility company parents. Itcurrently is owned by En-able which is a partnership of KN Energyand PacifiCorp;

ProLiance, whose parents are two Indiana utilities; DQ EnergyPartners, an affiliate of Duquesne Light; and AllEnergy Marketing,an affiliate of New England Electric Systems.

Ellen Beswick

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