For Release:
May 30, 2008
Contact: Bob Innes
(804) 768-6410
(804) 512-1425 - cellular
rinnes@nisource.com
CHESTER, VA. – May 30, 2008 –The cost to Columbia Gas of Virginia for
purchasing natural gas is going up resulting in an $8.15 increase to a
typical residential monthly summer bill. This change is effective today.
The average monthly cost will increase to a seasonal level of $52.34
compared to the current level of $44.19 based on 23 Ccf for monthly summer
usage. This gas cost adjustment period covers the months of June, July and
August. A Ccf is the measurement used for gas usage and is the equivalent
of 100 cubic feet.
It is important to note that Columbia's gas costs are typically
adjusted on a quarterly basis to reflect the price the company pays for
natural gas, which by law is passed on dollar for dollar to customers
without markup or profit.
The other components of a Columbia monthly gas bill, which are not
changed by this filing, include charges for the service and delivery of
natural gas and state and local taxes. Customers are continuing to realize
a base rate credit of $2 million annually in 2007 and 2008 as part of the
performance-based regulatory plan approved in late 2006.
"Natural gas prices have increased recently due, at least in part, to
the extreme volatility occurring in energy and financial markets, which
have increased the prices of natural gas and other sources of energy." said
Carl Levander, Columbia’s president. "Although Columbia obviously cannot
directly control wholesale natural gas prices, which are set on a national
basis, we take steps to minimize costs to our customers by purchasing
natural gas supplies under a portfolio of contract terms and pricing
provisions, designed to protect customers from pricing volatility.
However, during a high price market environment, those higher prices will
be reflected in customers' bills, since we ultimately sell gas to our
customers at the same cost we pay."
Columbia Gas encourages customers to take advantage of the Budget
Payment Plan which spreads their annual billing evenly over a 12-month
period. Also, the time is now to perform maintenance on your furnace and
install caulking or weather-stripping around windows or doors to use energy
wisely. For more information customers can call Columba’s DirectLink at
1-800-543-8911 or log on to www.columbiagasva.com.
Columbia Gas of Virginia, with headquarters in Chesterfield County,
is one of the 10 energy distribution companies of NiSource Inc. (NYSE: NI).
Columbia Gas of Virginia serves more than 240,000 customers in portions of
Northern Virginia, Hampton Roads, suburban Richmond, Central Virginia, and
the Shenandoah Valley, the Lynchburg region and parts of Western Virginia.
NiSource distribution companies serve 3.8 million gas and electric
customers primarily in nine states. More information about Columbia Gas of
Virginia is available on the World Wide Web at www.columbiagasva.com.