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6.13.03 The gas bill picture is clearer but no brighter Nebraska natural gas customers who cringed at news of a 14 percent to 46 percent increase in their monthly level payment bill won't like this story. Nix those numbers. The basic news is unchanged: Expect natural gas prices to rise a lot this year because of shortages. But bills for some customers could go up more than previously reported. Both Aquila Inc. and the Metropolitan Utilities District on Thursday clarified what could happen to their rates for level payment plan customers. On average, Aquila Inc. customers could see an 83 percent jump in their bills instead of the 46 percent the utility reported earlier. And some Metropolitan Utilities District customers could see the gas portion of their bills increase an average of 39 percent instead of an amount closer to the 14 percent previously reported. Fair warning: the explanation is complicated. At Aquila, local spokeswoman Jan Davis said she calculated her percentages incorrectly earlier this week while talking with The World-Herald. An apologetic Davis did what many people do when figuring percentages: She used the wrong base figure. M.U.D.'s figures differ from those previously reported because the earlier numbers were based on the utility's premise that customers would start the new billing year with clean balances. In reality, 74 percent of its level payment customers paid too little this year -- thanks to record water usage and to spiking wholesale gas prices - and will owe an average of $148. At both Aquila and M.U.D., how much bills go up will depend on whether customers pay off, in a lump sum, the amount they owe from the billing year that is now ending. Bills on Aquila's StreamLINE plan could increase an average of $29 a month, Davis said, for a total of about $63 -- an 83 percent increase. M.U.D., in releasing its figures earlier this week, said the average residential bill would increase by 14.4 percent. But that figure is off slightly and doesn't include any carryover from the billing year that will end this month. Tom Wurtz, general manager of M.U.D., said the utility's figures were based strictly on the cost of providing service for the next year. Carryover balances weren't considered because, he said, they weren't requested. At a minimum, the average M.U.D. bill will go up at least 16.1 percent. The utility had calculated the 14.4 percent based on amount of gas used, not monthly payments. The actual bill paid by the average level payment customer at M.U.D. may increase by 39 percent for customers who carry over money owed from the current year. M.U.D. estimates the average carryover will be $148 -- $106 for gas and $42 for water. About 45,000 M.U.D. customers will owe the utility money, and about 16,000 will get money back. M.U.D.'s bills appear bigger than Aquila's for two reasons unrelated to the rates they charge. First, M.U.D. also bills for water and sewer service while Aquila bills only for gas. Second, the average M.U.D. customer uses more gas because, the utility says, a smaller proportion of its customers live in apartments. At Kinder Morgan Inc., Nebraska's other major provider of natural gas, the average level payment-type bill has gone up about 20 to 25 percent, said Les Meyer, director of business relations. Kinder Morgan offers two budget plans, and about 85 percent of its customers are on one of those plans. Nationwide, gas prices are expected to be significantly higher this winter than last winter. Already, the spot price for natural gas is running about double what it was last year. Despite the jump in level payment plans, budget counselors advise that such plans are the best way to pay gas bills. Those not on the plans could be in store for an even bigger shock this winter. Federal officials have said that conditions are ripe for record bills if the weather turns bad. Aquila also has told the state that it intends to raise the fee it charges to provide gas in Nebraska. The actual amount of that proposed increase hasn't been filed with state or local regulators. That possible increase, which would go into effect early next year, is not included in this level payment calculation. |
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