Keyspan has asked state regulators for permission to raise natural gas rates by 27%.
The company says it needs the rate hike to cope with huge spikes in the cost of gas.
New Hampshire Public Radio’s David Darman has more.
Keyspan officials say they have no choice but to ask for a 27 percent rate hike.
Carmen Fields is a regional spokeswoman for the company.
22 31 its important for your listeners to understand that the rate increase for the cost of gas is a straight pass through. Keyspan does not get a return on the cost of energy it sells. 22 45
KeySpan has about 78,000 customers in the state, mainly around Manchester and Concord.
Most of those customers are residential, and use natural gas to heat their homes.
If Keyspan gets its way, the average homeowner can expect to pay 44 dollars per month more for gas than last year.
Social service agencies say an increase that big could hit low income people hard.
Louise Bergeron is with Southern New Hampshire Services in Manchester.
The group fielded more than 9,000 requests for help with heating bills last winter.
07 48 it really does happen in our world that people either put off food, often times put off other bills to be paid and get in trouble that way, or for the elderly its prescriptions they don’t buy or buy only half as often as they should because of the high cost of fuel. Its not unusual for clients to get in trouble with their rent because they have to keep the heat on, so if they pay the heat something else has to go. …07 128
Many businesses that rely on natural gas are also facing the price increase.
Professor Ross Gittell of the University New Hampshire studies economic development in the state.
He says firms are already coping with a barely recovering economy.
12 45 businesses have been holding on and those that have been able to maintain employment have been able to do so through productivity increases and finding out ways to cut costs and stay competitive with firms outside the state. Now with this increase in energy rates, for those companies, it puts further pressure on these companies in a very difficult economic environment. 12 109
One New Hampshire manufacturing plant that relies on natural gas is Wasau Papers in Groveton.
Two years ago, the company started making its own electricity with a gas generator.
David Atkinson is vice president of operations at the plant.
He says the move initially saved 2 million dollars a year.
But now he says, the cost of gas from Nova Scotia has gone up more than 60 percent.
19 02 In a good market we would pass on fuel price increases and those type things, but given the competitiveness and the current state of the economy in the paper industry we are finding it very difficult to pass those costs on. It really comes out of our, our bottom line. 19 29
New Hampshire regulators say the gas price increases are due to several factors.
But perhaps the most important reason for is that demand for gas is as great as ever.
Steve Frink is with the Public Utilities Commission.
He says new electric generation plants use huge amounts of gas.
28 215 they just built a plant, it came on line, really, last april in Londonderry nh, aes. And that one plant can take 3 times as much as keyspan uses for its entire system, and that’s 78,000 customers. 28 234
The PUC has tentatively scheduled 2 hearings for Keyspan’s request.
The earliest an increase can go into effect is November 1st.
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