Natural gas rates hiked over 20%

Wednesday, November 1, 2000 By STAN FREEMAN

Gas customers will feel the heat of higher monthly bills starting today.

The Massachusetts Department of Telecommunications and Energy yesterday approved higher rates for the period from Nov. 1 to April 30 for the state's gas utilities. It cited the increased cost paid by utilities for natural gas.

Monthly bills for the typical residential heating customer of Bay State Gas will rise by 24 percent compared to last winter, and those of customers for Berkshire Gas Co. will increase by about 23 percent.

"We realize that it could be difficult for some customers, and we urge them to qualify for help through fuel assistance," said Carol A. Churchill, a spokeswoman for Bay State.

Bay State Gas serves about 90,000 customers in Western Massachusetts. Berkshire Gas serves about 33,000 in the region.

Energy officials said the utilities are not making higher profits with the higher rates. They are passing the increased costs of their gas supplies on to customers. The wholesale price of natural gas has nearly doubled since the start of the year.

There was record-setting heat in parts of the western United States this summer increasing the demand for gas to create electricity to run air conditioners. Nearly all power plants being built are designed to burn gas, further increasing the demand and wholesale prices.

Apparently winter plans to spare no one who pays heating bills. Prices for oil, gas, electricity and even wood are higher this heating season. But with 41 percent of Massachusetts residents heating with gas and 43 percent heating with oil, price increases for those fuels are causing the greatest hardships.

Heating oil prices in Massachusetts are 49 percent higher than they were a year ago at this time, according to the Massachusetts Division of Energy Resources.

Edward Ainslie manages 182 residences at Southpoint Apartments and Townhouses in Amherst. Some are heated with gas and others with oil, and the business pays those utility bills, not the renters, he said.

He believes fuel prices are artificially high, that people somewhere along the supply lines are reaping unfair profits. "It's not right for them to basically increase the prices when there's no call for it."

Last month, the federal government gave Massachusetts almost $68 million in home heating fuel aid for low-income residents, a $17 million increase over last year.

This year, a household of four can have a gross income of up to $34,100 and be eligible for benefits, and a household of six can earn up to $45,700 and be eligible.

Last year, the basic benefits ranged from about $125 to $460 for the season. However, when federal emergency funds were added to the benefits later in the winter, some households in Western Massachusetts received more than $1,000 in heating aid.

Applications for fuel aid can be made to these agencies:

The Franklin Community Action Corp., 393 Main St., Greenfield, 413-774-2318, serves Franklin and Hampshire counties.

Valley Opportunity Council, 300 High St., Holyoke, 413-552-1548, serves all of Hampden County except Springfield.

New England Farm Workers Council,1628-1640 Main St., Springfield, 413- 272-2209, serves Springfield. Bay State Gas has contributed $100,000 to its Good Neighbor Energy Fund which is administered by the Salvation Army. It is designed to help households that do not qualify for fuel aid but are having trouble meeting their energy bills.

Up to $275 in benefits per household is available from the fund. A household of four can have a gross household income of $34,100 to $46,888 and be eligible.

http://www.masslive.com/newsindex/springfield/index.ssf?/news/pstories/ae111gas.html

-- Martin Thompson (mthom1927@aol.com), November 01, 2000