Editor:
Are we being ripped off when choosing our natural gas supplier from the "Choice Gas Program"?
As a natural gas consumer, I am expected to choose my gas supplier every year by May 1. Failure to comply results in a gas supplier being chosen for me. The new rate chosen from the program starts in the month of May and continues through June 1 of the following year. This rate is the price per thermal unit of heat you use each month. This rate is listed on your bill.
Kinder Morgan is in charge of the billing of the natural gas consumption used each month. This bill involves a list of four different charges.
1. A commodity charge: This is the price one is quoted per thermal unit of heat from your chosen gas supplier (thermal unit times price quoted).
2. A customer charge: This is a charge for accounting, meter reading, billing, collection service, franchise fees, administrative costs and state and county taxes. This price is $11 per month and subject to change with inflation.
3. A distribution charge: This is a charge for the maintenance of piped gas lines, delivery of gas, the servicing and installation of the gas meter. This fee is 23 cents per thermal unit of heat times the consumer's usage each month.
4. State and county taxes: The state and county taxes are then added to the bill.
I would think the customer service charge could be eliminated as there should be enough money in the added distribution charge to cover those expenses.
A consumer needs to choose their rates wisely. The market index rates seem to be the better choice. These rates seem reasonable but will fluctuate up and down throughout the year. However, this fluctuation is not unreasonable.
When called, the supplier will give you the fluctuating prices from the previous year. Even after you have added on the extra 23 cents distribution charge to the market index rate, one might pay about 67 cents per thermal unit. Stay away from inflated rates such as the fixed or a market rate with a cap on them. Why pay more and add to the higher profits of the gas supplier?
In our Choice Gas Program, should we be intimidated to choose a certain gas supplier with statements such as "choose or lose"? To give you something to think about, the statement "go with the gas supplier that gives you security and gas service."
DALE SPARKS, Mills
Posted in Mailbag on Monday, April 30, 2007 12:00 am
© Copyright 2009, trib.com, Casper, WY | Terms of Service and Privacy Policy