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Friday, January 31, 2003

Natural gas cost takes big leap



By Mike Boyer
The Cincinnati Enquirer

Colder winter temperatures will push up natural gas costs for residential customers of Cinergy Corp. on March 1.

The parent of Cincinnati Gas & Electric and Union Light, Heat and Power Co. said Thursday that costs for typical homeowners in Southwest Ohio would rise 65 percent and in Northern Kentucky 44 percent from a year ago.

The increases are due to a "colder than normal winter season that has increased the demand for natural gas," said L.C. Randolph, Cinergy's vice president of gas operations.

The higher prices are a sharp reversal from 2002, when slack demand and warmer temperatures drove gas costs down.

By law, utilities such as Cinergy - which has about 480,000 natural gas customers across the Tristate - can pass to customers the cost of gas it supplies. The prices are adjusted four times a year.

Chris Owen, who owns a duplex in Mount Healthy, said he can afford the increase, "but it certainly takes money out of my pocket."

The rise will be more of a hardship for his upstairs tenant. "He's paying about $160-$170 a month and is on a fixed income,'' he said.

In Ohio, the typical CG&E customer using 10,800 cubic feet of gas will pay $97.62 starting March 1, up from $59.33 a month during the March through May period last year.

In Northern Kentucky, ULH&P customers using the same amount of gas will pay $100.86 a month, up from $69.90 a month last year.

The March rates will be up about 20 percent from the $81.46 a month that a CG&E customer using the same amount of gas is now paying.

E-mail mboyer@enquirer.com.




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