AL, Southeast Alabama Gas District Raising Rates

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Andalusia Star News, May 23, 2000

The price of operating gas stoves, water heaters and other gas appliances is going up. The Southeast Alabama Gas District is raising its gas rates by 16 cents per hundred cubic feet, effective June 1.

Gary Henderson of The Southeast Alabama Gas District said the rate hike is necessitated by an increase in the price the district is paying for gas.

Gas prices have increased 40 to 45 percent in the last 60 days, Henderson said. It jumped 30 cents one day at lunch.

Henderson said it is an unusual time of the year for a gas price increase they usually come in the winter.

We thought the increase was an anomaly, he said, but the gas price has continued to rise.

Henderson said residential customers should not see a drastic increase in their bills but was unable to give an exact amount for an average customer.

All customers will be affected by the rate increase, but minimum service charges will remain the same for all classes of service, according to Henderson.

Henderson said the district will bring the price of gas back down if the price they pay for gas decreases dramatically.

The district buys gas on a system called hedging which will allow it to decrease the price it pays for gas if the gas price decreases. The district buys gas supplies over a period of time, and if not for hedging, it would be locked into the price.

We hope the rate comes back down, he said. If the rate comes back down, we will be able to drop the price.

http://www.andalusiastarnews.com/news/2000/05/23/0523gas.html

-- Doris (number9@mindspring.com), May 23, 2000


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