January 24, 2005

Hinton Tops State in Overall Utility Bills
Natural Gas Increases Blamed for Bill Boosts Far Above Inflation Rate
 
by David M. Kinchen
Editor, Huntington News Network
 
Charleston (HNN) — An annual report from the Consumer Advocate Division of the West Virginia Public Service Commission once again shows the small city of Hinton — population about 2,800 — at the top of the heap in statewide overall utility rates, with an average consumer paying $274.45 a month for natural gas, electricity, water and basic telephone service.
 
According to Billy Jack Gregg, CAD director, this compares with a statewide average of $248.81 for the 2004-2005 heating season. The statewide average is up 11.5 percent over the 2003-2004 season, he said in the report that was released in mid January, 2005. The increase for Hinton was 12.4 percent, from $244.22 for the basic package (600 kilowatts of electricity, 13 Mcf of gas, 4,500 gallons of water and single-party, flat-rate telephone service). Gas consumption at that level would by typical of a smallish, newer house with excellent insulation – in a town full of older, larger houses.
 
By comparison, a resident of Huntington, where wage rates are substantially higher than Hinton’s, saw an increase over the same period from $231.49 to $251.19, or 8.5 percent. The Huntington figures are the same as for Charleston, which probably has the highest per capita income levels in the entire state, the report shows.
 
Gregg added that “for the second straight year, the high price of natural gas was the primary reason for the jump in the cost of utility service. Over the past decade utility rates in West Virginia have increased 49.6 percent, more than twice the rate of inflation in the general economy during the same period. However, most of the increase in rates in the last decade occurred during the past two years as a result of increasing natural gas prices.”
 
In spite of these increases, West Virginia ratepayers still pay rates that are lower than those in neighboring states, Gregg said. The full report can be accessed from the CAD’s web site: www.cad.state.wv.us.
 
The report has a table showing the costs for 17 cities in the state. Of the areas studied, Wheeling residents have the lowest rates in the state, at $226.57 for 2004-2005, up 7 percent from $211.76 in 2003-2004. Beckley residents also pay substantially less than Hinton’s: $236.36, up from $219.79 in 2003-2004, a 7.5 percent hike. Oak Hill is next highest behind Hinton, $267.83, a 12.7 percent hike over $236.60 in 2003-2004, while Bluefield is third highest, $259.68, a 9 percent boost over 2003-2004’s $238.23.
 
Gregg said the disparity in rates within West Virginia for natural gas accounts for most of the differences: “Natural gas continued to be the main factor responsible for the disparity in rates within West Virginia. Customers using exactly the same amount of gas — 13 Mcf — paid as little as $147.48 if they were served by Mountaineer Gas, or as much as $164.32 if they were served by Dominion-Hope — a variance of almost $17.”
 
Hinton Mayor Cleo Mathews responded to the announcement of her city’s ranking by calling it “totally unfair…that for the fourth year in a row this small city with many residents on fixed incomes are paying such high utility rates — especially natural gas rates.”
 
She added that Hinton “has many seniors deciding between food, medicine and heat.”
 
Compounding the burden, the 2.7 percent Social Security cost of living adjustment for 2005 was amost totally consumed by a 17.5% hike in Medicare premiums from $66 a month to $78.20 — the largest increase in the program’s 40-year history.
 
David M. Kinchen is the Editor of HuntingtonNews.Net, repsponses and article submissions can be made to .
 
As a precaution against “spam” and viruses this e-mail address has been presented with a JavaScript. If you do not see this e-mail address, please check your security settings or upgrade your Web browser, links are available on the HNN Links page. Alternately by changing the appropriate portions you may manually enter the following address:

stories[at]huntingtonnews[dot]net