Just days after it advised Ohioans to review their gas choice programs because of recent rate reduction requests filed by Columbia Gas of Ohio and Dominion East Ohio, the Ohio Consumers’ Counsel (OCC) warned natural gas customers of Dominion East Ohio that they stand to lose under a proposal currently being considered by the Public Utilities Commission of Ohio (PUCO).

The OCC said the Dominion proposal involves the distribution of approximately $100 million in customer overcharges to certain income-eligible consumers. Since these funds came from charges paid by all Dominion East Ohio customers, the OCC believes that these same consumers deserve a refund.

“As the residential utility advocate, we believe that these overcharges should be refunded to every one of Dominion East Ohio’s customers, not just a select few,” said Robert S. Tongren, Consumers’ Counsel. “By our estimation, each consumer deserves a $90 credit to their natural gas account.”

The consumer advocate said Dominion customers have paid the $100 million in overcharges since the company’s rates were last set in November 1994. The company has proposed plans to use that revenue to assist only a fraction of its customers under a Payment Matching Program for some customers with past-due balances.

The OCC said the program would exclude any consumers eligible to participate in the PIPP (Percentage of Income Payment Plan) or HEAP (Home Energy Assistance Program) state assistance programs and those who received assistance from last year’s Project THAW (Temporary Heating Assistance for Warmth). Also excluded would be any consumers who have received a disconnect notice for nonpayment of natural gas bills.

Additionally, the OCC alleges that the Dominion East Ohio proposal would increase the reconnection fees for many customers receiving a winter disconnection order next spring. Customers with incomes over 150% of the poverty level would be required to pay $250 and enter into a payment plan. Currently all customers regardless of income are required to pay $175 and enter into a payment plan.

Dominion East Ohio has requested the PUCO consider its plan on an expedited basis. The plan is expected to be discussed at a PUCO meeting on October 16 with a decision expected at the PUCO’s October 18 meeting.

The OCC said on Wednesday that consumers may want to review their gas supply options as their current contracts expire (see Daily GPI, Oct. 11). Due to falling natural gas prices over the past few months, Dominion and Columbia said they are now able to lower their gas costs. Columbia said that it will reduce its gas cost to $0.4816 cents per 100 cubic feet — a drop of 20% over last year (see Daily GPI, Sept. 28). At the new lower cost, the monthly bill for the average residential customer using 14,800 cubic feet of gas a month is estimated to be $106, about $40 less than last winter, the company said. Dominion said its customers will pay $5.384/Mcf, down 12.8% from the current $6.17/Mcf and down 25% from the $7.18/Mcf they paid during the third quarter last year (see Daily GPI, Sept. 27).

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