CHARLESTON, W.Va. — A recent increase in natural gas rates for two providers in West Virginia has the West Virginia Senate President concerned.
Sen. Jeff Kessler (D-Marshall) said he cannot understand why Peoples Gas and Mountaineer Gas are increasing their rates while West Virginia is sitting in the heart of a modern-day natural gas boom.
“We’ve got a glut of it and prices are going up,” Kessler. “Then, in the next headline, I read Chevron posted an $8 billion dollar profit in the last quarter. Something doesn’t add up.”
The state Public Service Commission granted the increased rates to the two companies, although in many cases natural gas rates have steadily declined over the last ten years. Some gas rates for residential customers are half what they were a decade ago.
“My degree in economics still tells me it’s supply and demand,” Kessler said. “I need to see some justification why it’s going up and we’re sitting on the mother load.”
Kessler has instructed his staff members to communicate with the state Public Service Commission’s Consumer Advocate to get a better understanding of the rate hikes. He said he wants to review the evidence to make certain something wasn’t overlooked.
The change will increase the average rate payer’s bill from on average $6 to $15 a month. Kessler said, while that may not seem like a lot to some, it’s a big bite to those on a fixed income.
“Everyone deserves to make a profit, but if they’re exorbitant profits and some profits I’m seeing made by the gas companies are significant,” Kessler said. “I just want to make sure we’re not eating the brunt of it as we market and ship this gas out of state.”