Kevin Kerrigan, manager of public affairs in Colorado, said Monday that normally the company files for cost adjustments in October of each year, but this year rapidly escalating natural-gas prices made Atmos act sooner.
"We're basically in a situation, if we don't do something now, by the time we get to November the adjustment would be extreme," he said.
Currently, the average residential bill per month is $53.85 in this area. That would jump to $67.36 with the increase. The adjustment, which is scheduled to go into effect June 1, must be approved by the Colorado Public Utilities Commission.
The residential rate will rise from 85 cents per hundred cubic feet to a $1.06 cents per cubic feet, and the commercial commodity rate will rise from 83 cents per cubic feet to a $1.04 cents per cubic feet.
Kerrigan said that the increase does not mean more money for the company. It simply reflects what Atmos is paying to acquire the gas.
"Basically, that's a pass-on charge. We make no money off of that charge," he said.
Gary Schlessman, president of Atmos Energy Colorado-Kansas Division, also emphasized that point in the news release on the increase.
"Our customers are charged, penny-for-penny, the same price for natural gas that we are charged," he said.
|
|
Kerrigan said the cost outlook is not likely to improve any time soon.
"All projections, from the American Gas Association to Wall Street, nobody is saying that the prices are going to go down," he said.
He said the company does not anticipate seeking any further adjustments before November. He could not speculate how much prices might go up then.
He said that one reason why prices have remained high despite the onset of spring, when demand typically falls off, is because utilities are stockpiling natural gas in anticipation of even higher prices this winter.
Atmos is encouraging customers to take steps now to improve the energy efficiency of their homes. This includes adding insulation, caulking windows and doors and installing a setback thermostat, which can be programmed to change settings at night or when the home is unoccupied.
The company also offers customers the option of switching to "budget billing," which evens out their bills. Under this program, the amount of each monthly bill is based on a rolling 12-month average.
Customers can signup by calling (888) 286-6700 or going to www.atmosenergy.com.
