It has enraged two communities to the point that they are asking for an Attorney General’s investigation into price gouging.
The office of Attorney General Alan Wilson, who is running for Governor, says, however, there is nothing they can do. They suggest contacting local, elected representatives.
So hopping-mad customers of the Clinton-Newberry Natural Gas Authority also have done just that.
“The biggest thing that’s out there now,” CNNGA General Manager Jimmy Capps told The Chronicle Monday morning, “is that we ran out of gas. and that’s not true.”
Customers are angry because, with practically no advanced notice, the gas authority which is owned by the Cities of Clinton and Newberry has passed along a temporary rate-increase of 44% based on the fact that CNNGA thought January was going to be a mild month, and January turned out to be a cold month. Consequently, CNNGA had to buy natural gas with a price that in some cases went from what would have been $6/dekatherm to $97/dekatherm. Isn’t that price-gouging at a time when the Governor has declared a State of Emergency? The AG’s Office says probably not.
Customers saw their bills jump $300. One bill reported to The Chronicle topped out at more than $700. Some customers said they were running 1 gas heater, and saw a significant cost-jump. Some said they ran gas logs 1 time and saw a bill-size they weren’t expecting. One rationale floated by a long-time observer of CNNGA was that the authority’s management didn’t buy enough pipeline capacity to MOVE the natural gas.
Capps said plenty of capacity was reserved by the authority in plenty of time for the extreme cold. He said the authority never had to buy “emergency” natural gas.
For customers, there was more than enough blame to go around - CNNGA for the pass-through on just 1 billing cycle, the Cities of Clinton and Newberry which take an end-of-the-year dividend from CNNGA, the natural gas supplier that charged $97/dekatherm, the pipeline companies that move the gas and, finally, the fact that they were given almost no advanced notice.
They also worry that now the other shoe will drop -- higher than normal electric bills, because electric motors blow the natural gas heat into the house or business.
This is a portion of CNNGA’s response:
“Customers will see the elevated cost of natural gas reflected in the price paid per Therm for January gas deliveries. These higher charges are driven by wholesale market conditions and increased consumption, as many consumers remained inside throughout the severe weather period, which directly increased their use of natural gas as their systems worked to keep them comfortable. Customers can expect to see a natural gas utility bill that is approximately 50% higher than expected.
CNNGA understands the financial impact that higher winter gas bills can have on individual and household budgets, and we recognize that some customers may struggle to pay their bill in full by the date listed on their billing statement. CNNGA offers residential and small commercial several options for those who need assistance paying their balance by the “pay by” date listed on their billing statement:
“Option 1: Payment Plan - Customers may contact CNNGA on or before their pay-by date to arrange a payment plan that spreads the balance due on the January usage statement over a maximum six-month period.
“Option 2: Levelized Billing Program - Eligible customers may enroll in CNNGA’s levelized billing program, which calculates usage over a rolling 12-month period. This program updates monthly and works to levelize the balance due across upcoming months.
“Option 3: Energy Assistance Resources - CNNGA can provide customers with a list of agencies that may be able to assist with paying natural gas bills. Customers who believe they may qualify for assistance are encouraged to contact CNNGA for more information and referrals.”
Whatever the reason, the substantial dip into the pocketbooks of CNNGA users in Clinton and Newberry, and surrounding areas like Whitmire and Cross Hill, has people engaged in a spirited debate. The Chronicle’s original Facebook post about the bills’ increase last Wednesday has generated 124 comments. A subsequent explanation post has generated 22 comments. Matthew Hensley, Upstate Editor for the Charleston Post & Courier, put out a call for people to send him their price-hike stories and his resulting article is on the newspaper’s website under the Spartanburg heading. His comprehensive report indicates that other natural gas providers are going to be under the same pressure, but they are deciding to divide the increase among several upcoming months, rather than increase bills all at once.
For its part, the South Carolina Attorney General’s Office (see above) says the situation appears to have been beyond CNNGA’s control and, therefore, not a winter-emergency, price-gouging issue. The utility, the office says, is not regulated by state offices like the Public Service Commission or the Office of Regulatory Staff as it is a “self-governing” extension of local governments, which takes it back into the hands of the Clinton and Newberry city councils. There is going to be a board meeting in Newberry but, as of press time Monday, it wasn’t clear when or where. - NOTE: since Monday, the authority has announced that the next board meeting will be Feb. 26, 6 pm, in the Firehouse Conference Center, which is next to The Opera House in downtown Newberry.
