Few sign up for cheaper, regulated gas

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Posted 7:26AM on Saturday, August 24, 2002

ATLANTA - Fewer than 50 low-income customers have signed up for cheaper, regulated natural gas service aimed at providing them a break on heating bills. But officials expect that to change as the cooler weather begins. Scana Energy, designated by the Public Service Commission to offer the service, started enrolling customers last week. The best time to lock in discounted gas prices is before the winter cold hits. That is why the PSC is promoting the low-cost regulated service, which becomes available next month. PSC Chairman David Burgess has taped television and radio ads urging low-income households to sign up for ``the lowest prices available in Georgia for natural gas service.'' While Scana has not set prices for September, August prices would have been 50.5 cents per therm, more than 20 percent lower than those offered on the unregulated natural gas market. Low-income senior citizens will receive additional discounts of 2 cents per therm. Scana is guaranteed a profit of 1 cent per therm for each monthly bill. Households that qualify for the state Department of Human Resources low-income heating assistance program are eligible for the special rates. Between 30,000 and 50,000 are eligible, but they must sign up for the service, PSC spokesman Bill Edge said. Scana, the state's second-largest gas marketer, was designated as regulated provider under a new law designed to correct deficiencies in the state's 1997 gas deregulation law. High prices have hurt the ability of tens of thousands of low-income families to pay their gas bills. Many have had their gas service terminated as a result. Under a two-year contract with the PSC, Scana will receive $77 for each low-income household that signs up for the new program, to cover prospective bad debts from unpaid bills. The money will come from the state's $15 million universal service fund, which will be maintained by surcharges on large industrial gas users.