Slammed

Hundreds of thousands of northern Illinois consumers have been slammed with soaring natural gas bills after switching services from traditional utilities to alternative gas suppliers, according to a consumer alert issued last week by the Citizens Utility Board (CUB). However, some of the competitive gas suppliers are crying foul over CUB’s analysis of their offers to customers.

Hundreds of thousands of northern Illinois consumers have been slammed with soaring natural gas bills after switching services from traditional utilities to a new breed of unregulated gas supplier, according to a consumer alert issued Monday by the Citizens Utility Board (CUB).

Despite a major snowstorm that slammed the Plains and the Midwest Friday and was bearing down on the East, a number of natural gas futures traders took profits following a week of trading higher. January natural gas futures on Friday put in a low of $8.350 before closing at $8.422, down 42.2 cents on the day but 32.3 cents higher than the previous week’s close on Wednesday (Nov. 22).

A dramatic decline in natural gas revenue and sky-high capital expenses slammed the quarterly profit of Houston-based EOG Resources Inc. The independent posted 10.9% production growth from a year ago, but gas revenue slumped 12% and expenses climbed 23%.

In a small bit of irony last December when Enron Corp. had filed for bankruptcy, American Electric Power’s Eric van der Walde, the executive vice president of trading and marketing, said, “The wholesale energy marketplace is bigger and stronger than any one company. The market has performed well during these weeks of uncertainty about Enron’s future. We are confident that AEP and other leading wholesale energy providers can fill any market needs that may arise” (see Daily GPI, Dec. 3, 2001). That was then, this is now. And now is not so confident anymore.

In a small bit of irony last December when Enron Corp. had filed for bankruptcy, American Electric Power’s Eric van der Walde, the executive vice president of trading and marketing, said, “The wholesale energy marketplace is bigger and stronger than any one company. The market has performed well during these weeks of uncertainty about Enron’s future. We are confident that AEP and other leading wholesale energy providers can fill any market needs that may arise” (see Daily GPI, Dec. 3, 2001). That was then, this is now. And now is not so confident anymore.